Entain Reports H1 Results and Upgrade Its FY24 guidance

Financial Highlights for H1

Entain reported a 6% increase in Total Group Net Gaming Revenue (NGR), including a 50% share of BetMGM. This translates to an 8% increase on a constant currency basis, though on a proforma basis, the growth was flat. The company’s performance was bolstered by a 9% increase in Online NGR, excluding the US market, with a constant currency increase of 11%.

The Group’s EBITDA for H1 stood at £524 million, marking a 5% increase from the previous year. This improvement is attributed to underlying Q2 outperformance and stronger-than-expected win margins during the Euros.

Furthermore, Entain saw an improvement in its Online NGR performance, with a year-on-year increase from -2% in Q1 to +5% in Q2 on a constant currency basis. This growth was notably driven by a 28% increase in NGR from Brazil in H1.

The company identified further efficiencies through its Project Romer initiative, increasing the net savings target to £100 million by 2026, up from the previous target of £70 million.

Following stronger-than-expected Q2 performance, Entain has also upgraded its FY24 guidance. The company now expects low single-digit positive growth in Online NGR on a proforma basis, compared to the previously anticipated low single-digit negative growth. Group EBITDA for FY24 is projected to be in the range of £1,040 million to £1,090 million.

Q2 was the last full quarter when Entain was led by Stella David, as the company has recently announced the appointment of Gavin Isaacs as the new Chief Executive Officer, effective September 2, 2024.

”Entain’s H1 results are clear evidence that our hard work improving the Group’s operational performance is bearing fruit. Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond,” stated Stella David.

”Our focused execution underpins the Group’s performance so far this year, and we are excited by the opportunities ahead. I look forward to welcoming Gavin Isaacs as our new Chief Executive Officer and supporting him as we continue to build on the Group’s improving operational momentum,” added Interim CEO.

BetMGM Surpassing Internal Goals

BetMGM has surpassed internal goals for acquisition and retention, stabilizing its market share and driving sequential quarterly revenue growth.

For the first half of 2024, BetMGM reported net revenue of $1.0 billion, a 6% increase year-over-year. In Q2 alone, net gaming revenue (NGR) increased by 9% year-over-year and 4% compared to Q1, demonstrating accelerating growth.

Significant enhancements have been made to BetMGM’s sportsbook in the first half of 2024. The integration of Angstrom, Entain’s specialist US-sports-focused pricing and data analytics capability, has expanded the range of MLB and NBA products, including the in-house Same Game Parlay (SGP) and SGP+ offerings.

This expansion has led to a doubling of weekly MLB SGP bet volumes, with active users placing MLB SGP bets up by 40% compared to last year. Looking ahead, Angstrom’s capabilities will be fully integrated into the NFL offering for the 2024 season, featuring a more streamlined lobby experience and new live bet tracking features.

iGaming remains a strong suit for BetMGM, offering the largest collection of online proprietary and exclusive games. Continued investment in in-house content, exclusive third-party relationships, and personalized engagement and rewards mechanics enhances BetMGM’s appeal. The platform currently boasts the largest online jackpot in New Jersey at over $5 million. Increased marketing investment in H2 2024 aims to further boost growth and profitability in the iGaming sector.