TOP NEWS: Entain profit swells on Covid-induced online gambling boom
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(Alliance News) - Entain PLC on Wednesday reported a strong first-half as revenue and earnings were lifted by a pandemic-induced boom in online betting.
The Ladbrokes owner enjoyed continued momentum across its brands, it said, with revenue for the six months to June 30 up 12% to GBP1.77 billion from GBP1.58 billion last year.
Pretax profit was GBP130.6 million, almost triple GBP45.1 million a year previously.
Entain said first half retail net gaming revenue was down 46% amid betting shop closures on the high street, but online NGR excluding Germany was up 38%. Entain highlighted that a new regulatory regime in Germany was hurting the online gaming market there.
Despite the strong results, Entain did not propose an interim dividend but said it expects that by the time it reports its full-year results in March, it will be in a position to recommence payouts.
Shares in the company were 0.9% lower at 1,948.00 pence each in London following the announcement, though the stock remains up 72% so far in 2021.
The gambling group also noted that its its joint venture in the US with MGM, ResortsBetMGM, continues to perform strongly and is well positioned for further success in the second half.
Chief Executive Officer Jette Nygaard-Andersen said: "In the US, BetMGM goes from strength to strength with our position as number 2 operator firmly established in the fast-growing sports-betting and iGaming market. We expect to be operational in around 20 states, representing 33% of the US adult population, over the next 12 months.
"Entain has a long runway for sustainable growth built into our core business. In addition, our unique powerful platform puts us at the heart of the convergence of media, entertainment and gaming, providing us with exciting opportunities in interactive entertainment that we believe will further power our growth for many years to come."
Looking ahead, Entain pointed to the potential for acquisitive growth in new markets, highlighting opportunities across Latin and Central America, Central & Eastern Europe and Africa.
Full-year earnings before interest, tax, depreciation, and amortisation is expected at previously guided levels in the range of GBP850 million to GBP900 million. At the half-year stage, underlying Ebitda was GBP401.1 million, up 12% from GBP358.9 million a year before.
The continued rise of online betting is expected to continue, with Entain anticipating the overall gaming market to be larger after the pandemic than before.
By Will Paige; willpaige@alliancenews.com
