Entain breaks £3bn H1 revenue barrier as online and US shine
Ladbrokes parent company sees downturns in Germany and Brazil as Turkish settlement carve-out looms
Entain has revealed a 16% year-on-year (YoY) rise in H1 revenue on a constant currency (cc) basis to £3.1bn.
The FTSE 100 firm championed an improving online arm and record level of active customers, along with the strong performance of its US-facing JV BetMGM as core reasons for growth.
EBITDA jumped 6% YoY to £499m from H1 2022’s £471m while operating profit increased 25% YoY from £246.5m to £307.4m.
Breaking revenue down by division, Entain’s online arm posted a 12% YoY in revenue on a cc basis.
The division was driven by a 19% increase in igaming revenue while sports remained flat with a 3% uptick.
However, on a pro forma basis, online revenue also remained flat with a modest 1% YoY increase.
Geographically, a 12% increase in revenue in Italy and 7% jumps in Georgia and the Baltics helped offset downturns elsewhere.
Germany continues to represent a headache for the firm, with revenue down 30% YoY while an unexpected 14% decrease in Brazil also left a dent.
BetMGM continues to beat expectations, having previously disclosed it had recorded $944m in revenue for H1.
Same state revenue growth of 25% from online operations was also a highlight for the JV.
The operator reported a positive EBITDA contribution in the first six months of the year, with BetMGM on track to replicate this feat in H2. Entain reiterated its long-term EBITDA margin target of between 30% and 35%.
Entain noted the brand holds a 27% market share for its igaming operations while across sports betting and igaming this figure drops to 18% in markets it operates in, excluding New York.
Group revenue excluding the US landed at £2.4bn for the reporting period.
Looking at actives, Entain noted a 23% increase in online customers, or 15% on a pro forma basis. The operator said this was down to its “continued strategic diversification and broadening of [its] customer base”.
During the first half of the year, Entain acquired Polish market leader STS, as well as pricing specialist Angstrom Sports and scores app 365Scores.
The group also penned a 25-year partnership with TAB NZ to give it access to the New Zealand sports betting market.
Entain said that it expects FY 2023 EBITDA to land between £1bn and £1.05bn when pre-accounting for the impact of the TAB NZ deal.
Elsewhere, Entain confirmed it had set aside £585m in regard to a potential settlement with HMRC over alleged historic failings in its former Turkish business.
Jette Nygaard-Andersen, Entain CEO, said: “This has been another period of strong performance for Entain as we make clear strides towards delivering our strategic ambitions.
“In particular, we are making excellent progress in broadening our customer base and deepening our audience engagement, as evidenced by the record number of active online customers on our platform.
“BetMGM continues to show momentum and backed by our technology and capabilities we are excited by the improvements we are delivering for customers in the US.
“I’d like to thank all my Entain colleagues around the world for their hard work and dedication in delivering this performance. This clear focus on driving sustainable long-term growth combined with our global operating capabilities underpins our confidence in our prospects for FY 2023 and beyond and delivering value for our shareholders,” she added.
Entain’s share price was down 2.2% at the time of writing to 1,328p.