Key points:
- Net gaming revenue was up 7% to £5.16bn
- Gross profit was also up 7% to £3.12bn
- Operating loss was -£250.1m and loss for the year at -£461m
Entain has published its annual results for the year ending 31 December 2024. Net gaming revenue for the industry giant increased 7% when compared to the year before to £5.16bn ($6.66bn).
Revenue from online operations increased by 11%, which was driven by 2% in UK and Ireland, 41% in Brazil and 19% in Croatia.
While retail revenue from the UK fell 1% and Belgium fell 6%, the same vertical increased 4% in Italy and 5% in Croatia.
With both verticals combined, UK saw 0% change in revenue for a total of £2.05bn, a 1% increase in gross profit to £1.4bn, a 5% decrease in sports wagers to £4.92bn and a 12% dip in operating profit to £285.6m.
After the separately disclosed items, discussed later in this report, operating profit for the UK was £281.8m.
Entain’s international section covers Australia, Italy, Brazil, New Zealand, Georgia, the Netherlands, Germany and the other category.
International results saw a 6% increase in revenue for both retail and online for a total of £2.57bn, with an 8% increase in gross profit to £1.44bn, a 3% increase in sports wagers to £12.4bn and a 5% boost to operating profit to £407m.
After the separately disclosed items were taken into account, the international segment had an operating loss of -£117m.
The CEE segment, which includes Croatia and Poland, saw the largest swings with a 62% increase in revenue to £488m, a 54% increase in gross profit to £278.9m, a 76% increase in sports wagers to £1.58bn and a 34% jump in operating profit to £152.9m.
However, with the separately disclosed items, this put the operating loss at -£91m.
Stella David, Entain Interim CEO, said: ”2024 has been a year of transformation for Entain. I am delighted to see that our strategic and operational improvements are translating into strong performance; clear evidence that our strategy is delivering. I want to thank all my colleagues for their tremendous hard work and resilience.
"Entain has a high-quality portfolio of iconic brands with podium positions in attractive markets. Our return to organic growth is the beginning of our rebuild journey; our momentum continues, and we have started the year strongly.
“I am incredibly proud of our achievements so far and look forward to our opportunities ahead.”
Stella David has only recently had to step into the role of Interim CEO after former CEO, Gavin Isaacs, resigned with immediate effect after only five months in the role.
Overall gross profit for Entain increased 7% annually for a total of £3.12bn while the net loss for the year was -£461m, but this was still an improvement from net loss of -£936.5m in 2023.
Operating loss was also recorded at -£250m, compared to the -£644.7m recorded last year.
The EBITDA of £1.01bn marks an improvement of 12% year-on-year.
Good to know: A list of seperately disclosed items came to -£875.8m, and included £3.9m in legal settlements, impairment charges of £476.4m - which included £142.5m in charges against the Tab New Zealand business, £113.1m against BetCity, £75.9m against STS, £76.3m against Belgium and £8.7m against the Republic of Ireland retail portfolio
Also included in the seperately disclosed items section is £286.8m in amortisation of acquired intangibles and £49.6m in restructuring costs.
In the refinancing section, Entain explains that on 1 March 2024, the company raised an additional £300m of borrowings which was used to repay all of the amounts for the revolving credit facility.
On 29 April 2024, $500m was added onto a pre-existing loan to increase it to $2.24bn, which is due to mature in October 2029. The €1.03bn ($1.11bn) loan was also increased to €1.27bn, which will mature June 2028.
Entain explains that these loans were used to pay back the £300m loan mentioned above.
In the report, Entain emphasises that “the directors believe that the group and the company are well placed to manage the risks and uncertainties that it faces.
“As such, the directors have a reasonable expectation that the group and the company will have adequate financial resources to continue in operational existence, for at least 12 months.”
Finally, total shareholder equity fell 28% to £2.02bn from £2.79bn recorded last year.
Analysts from Bank of America and Morgan Stanley had the following to say about Entain: “Entain showed improved operational performance throughout FY24, particularly in the key online division, and the accelerating Q4 exit rate stands out as further evidence of this.
“We see UK&I +21% and Brazil +66%cc in Q4 as standout, and note all geographies (except Netherlands) were in growth in FY24.
“Online revenue growth for FY25 is guided for mid-single digits, described as in-line with its underlying markets, though we note this was +7% by 2025 in the November 2023 operational strategy update.
“We see this detail as marginally disappointing, though the company attributes this to Euros and sports margin comps rather than any underlying change in outlook (and given UK and other growth trends, this looks potentially conservative.
“Overall though, we see this as a positive release, which should further increase confidence in Entain’s operational trajectory.”
At the time of writing, Entain share prices have increased 2.96% from opening, up 4.2% over the last couple of days to £7.64.
This is also the lowest annual revenue growth since 2020; with FY23 reporting an 11% increase to £4.8bn, 2022 noting a 10% increase to £4.3bn and 2021 just beating this result with an 8% growth to £3.9bn.
