Entain has released its interim results for the first half of 2024, reporting a 6% year-on-year increase in group net gross gaming revenue (NGR). This increase includes a 50% stake in BetMGM, which represents an increase of 8% at constant exchange rates.
The group’s performance was reportedly helped by a larger-than-expected winning margin during the European Football Championship and improved operational execution in the second quarter.
In the six months to June 30, 2024, Entain reported group EBITDA of £524 million ($665 million), up 5%. The company's online NGR (excluding the U.S.) grew 9% and 11% on a constant currency basis.
However, projected NGR, including adjustments for acquisitions and other factors, remains flat.
The UK and Ireland division declined 6%, reflecting the challenging regulatory environment and other market conditions. Nevertheless, the UK and Ireland Online division reported a 12% increase in active customers so far this year, and stabilization in per capita spending.
The international business performed strongly, with net revenue up 10% on a constant currency basis. Net revenue in Brazil grew significantly, at 28%, in the first half.
The Central and Eastern Europe (CEE) region is also performing well, with NGR expected to grow by 12%. Croatian SuperSport of Entain's Central and Eastern Europe business reported growth of 17%, contributing to the positive results in the region.
Entain recently announced the appointment of Gavin Isaacs as Chief Executive Officer, effective September 2, 2024. Stella David will transition to the role of Chairman on September 30, 2024.
The company also raised its full-year 2024 guidance, expecting group EBITDA to be between £1.04 billion and £1.09 billion. The revision reflects better-than-expected second-quarter results and adjustments to the timing of regulatory implementation in Brazil and the Netherlands.
BetMGM, a joint venture with MGM Resorts, continued its growth momentum with net gaming revenue up 9% in the second quarter. The company's market share remained stable at 13%. The company plans to invest further in marketing in the second half of 2024, particularly for the NFL season and expanding its iGaming capabilities.
Entain proposed an interim dividend of 9.3p per share, a 5% increase. The company reportedly has a strong balance sheet, with net debt of £3.3 billion as of June 30, 2024, and cash reserves of over £1.3 billion.
In the first quarter of 2024, Entain reported total group NGR growth of 3%, with significant growth in the Central and Eastern Europe region, where NGR growth exceeded 100%. However, both online and retail NGR declined in the UK and Ireland segment, which was attributed to regulatory challenges and market conditions.
