Entain Plc cites that group trading is ahead of expectations as new CEO Stella David and Chairman Pierre Bouchut project full-year EBITDA guidance in the range of £1.1bn-to-£1.15bn.

Year-end guidance is elevated as Entain maintains trading against tough like-for-like comparatives as group net gaming revenues (NGR) stand at £2.62bn, up 3% on 2024 results of £2.55bn.

Group net gaming revenue (NGR) for the six months to 30 June rose 3% to £2.63bn, or 6 % on a constant currency basis, compared with £2.56bn in the same period last year.

Entain posted underlying EBITDA of £583.4m for the first half, up 11% year-on-year, driven by double-digit growth in its UK & Ireland online division and a sharp turnaround in its US joint venture with MGM Resorts. Including its 50% share of BetMGM, group EBITDA jumped 32% to £625.5m.

“This performance reinforces our confidence in driving sustainable underlying growth and generating more than £0.5bn of cash annually in the medium term,” David said. “Our business is getting stronger, fitter and faster – and we are well positioned to capitalise on the significant opportunities ahead.”

Red ink on continued losses 

Despite the operational improvement, Entain slipped to a £116.9m loss after tax for the half, widening from a £5.6m loss against 2024 comparatives largely due to £322.4m in separately disclosed costs.

These included £131m of amortisation on acquired intangibles, a £47.7m provision linked to AUSTRAC proceedings in Australia, £35.1m in restructuring charges, and a £75.7m hit from revaluing contingent consideration. The group also booked £87m in foreign exchange losses, compared with a £90.4m gain in the prior year.

Positive swings for BetMGM and UK brands 

The BetMGM joint-venture saw net revenue surge 35% on a constant currency basis to $1.35bn, with EBITDA swinging to a $109m profit from a loss of $123m in the first half of 2024. Both iGaming (+28% cc) and online sports (+61% cc) posted robust growth without any new state launches.

In the home market of UK-&-Ireland, NGR climbed 9% to £1.09bn contribution, powered by a 21% jump in online revenues as both sports (+16% cc) and gaming (+23% cc) benefitted from an easing of regulatory restrictions as underlying EBITDA for the region soared 37% to £273m. The retail performance of Ladbrokes Coral continued to be subdued as income dipped by 2%.

The International division delivered £1.29bn in NGR, down 2% reported but up 3% in constant currency. Performance was elevated by a Brazil NGR growth of 21%, attributed to a strong start for the reinvigorated Sportingbet brand and Entain’s player acquisition approach in the country. 

Elsewhere Italy gained 7% cc, but international growth was subdued by a 7% decline in Australia – a market which Entain outlines for growth with improvements of NEDs and Ladbrokes Australia. 

New Zealand rose 12%, showing positive momentum as Entain takes over the exclusive TAB NZ contract dependent on final legislation. The International unit’s underlying EBITDA slipped 9 % to £274.6m, partly due to £29m in Brazilian gaming taxes.

In Central European Markets, Entain CEE’s NGR contribution rose 5% to £253.8m, with Croatia up 11% and Poland up 2% as unit EBITDA advanced 12% to £94.7m. CEE trading reflects “SuperSport and STS Poland as market dominant brands”. 

Stella David: Transformation goals and must win markets

“Our transformation journey is well underway, gathering pace and supported by our high-quality portfolio of iconic brands,” Entain’s CEO said. “The actions we have taken are working. We have rebuilt momentum in the UK, executed a flawless Day One launch in Brazil’s regulated market, and BetMGM is delivering strong and profitable growth in the US.

“We remain committed to expanding margins, growing market share and ensuring our customers enjoy the best and safest experiences in the industry. With this foundation, I am confident we can return Entain to its winning ways.”