11.08.2023

by Mateusz Mazur

Entain’s Impressive Financial Performance and Strategic Progress in H1 2023

Entain plc, a prominent global sports-betting, gaming, and interactive entertainment group, has announced its interim results for the six-month period ending June 30, 2023 (H1). The company achieved remarkable achievements across various segments, demonstrating its commitment to strategic growth and customer engagement.

Record Online Customer Growth and Strategic Success

Entain reported a robust H1 performance with a surge in online active customers, marking a record high. The company’s strategic efforts in expanding its customer base were evident, with a 23% YoY increase and a 15% proforma3 rise in online active customers.

Financial Growth

The company’s financial indicators also showcased strong growth. Total Group Net Gaming Revenue (NGR), encompassing the US market, surged by 19% (16%cc2). Group NGR, excluding the US, witnessed a 14% rise (11%cc2), with a proforma3 increase of 3%.

Online NGR experienced a 15% boost (12%cc2), with a 1% rise on a proforma3 basis. Adjusting for known regulatory impacts4, proforma3 Online NGR grew by an impressive 6%cc2.

Retail and BetMGM Performance

Entain outperformed expectations in the retail segment, achieving a 12% increase in Net Gaming Revenue (NGR) (11% cc2), which reached 8%cc2 on a proforma3 basis.

The company’s market-leading offerings in betting and gaming terminals played a significant role in this success. Notably, BetMGM, a key player in the US market, reported exceptional performance with H1 NGR of $944 million, marking a remarkable 55% YoY increase.

Positive EBITDA and Financial Outlook

Entain achieved positive EBITDA in Q2 and is on track to meet its FY23 NGR guidance of $1.8-$2.0 billion. The company also anticipates being EBITDA positive in H2 2023, reaffirming its commitment to financial stability and growth.

Strategic Acquisitions and Expansion

Entain’s strategic expansion efforts included several noteworthy acquisitions. The acquisition of STS Holdings expanded the company’s presence in Poland and tapped into significant growth opportunities in the Central and Eastern European (CEE) region.

Additionally, partnerships with TAB NZ provided unique access to the New Zealand sports betting market. Acquisitions of 365Scores and Angstrom Sports further enriched the company’s content and product capabilities.

Positive Resolution of HMRC Investigation

Entain reported progress in its negotiations with DPA, indicating a likely resolution of the HMRC investigation into its legacy Turkish facing business, which was sold in 2017.

The company is making a provision of £585 million against the potential settlement payable over a four-year period.

Financial and Sustainability Highlights

Entain’s Group EBITDA8 reached £499 million, representing a 6% increase compared to the previous year. Despite the loss after tax from continuing operations of £502.5 million, the company announced a proposed interim dividend of 8.9p per share, marking a 5% YoY increase.

The company’s commitment to sustainability was also highlighted, with a focus on operating in regulated markets and implementing responsible gambling practices.

CEO’s Statement

Jette Nygaard-Andersen, CEO of Entain, expressed her satisfaction with the strong performance achieved during the period: “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 FY23 and beyond and delivering value for our shareholders.

In conclusion, Entain’s H1 2023 results underscore its strategic advancements, financial growth, and commitment to responsible business practices. The company’s positive outlook for FY23 and beyond is grounded in its global operating capabilities and customer-focused approach.

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