U.S. drives strong 1H topline growth at Entain, expects to settle with HMRC

by | Aug 10, 2023

(Sharecast News) – Entain reported a big jump in the company’s top line for the half driven by strong growth in the U.S..
For the six months ending on 30 June, the sports betting and gambling outfit posted a 19% increase in net gaming revenues with NGR at its BetMGM unit surging by 55% over the year to $944m.

Total revenues were up by 14% at current exchange rates to reach £2.38bn, with underlying earnings before interest, taxes, depreciation and amortisation 6% stronger at £499.4m.

Underlying profit before tax was up by a quarter to £307.4m and continuing adjusted earnings per share at 21.6p.

The company continued to expand during the front half of the year, moving into the Polish market with the purchase of ST Holding and inking a 25-year partnership with TAB NZ in New Zealand.

Acquiring 365Scores and Angstrom Sports meanwhile had boosted ots content and product capabilities.

The company also sounded a confident note in relation to HMRC’s investigation into legacy Turkish facing unit, which had been sold in 2017.

It therefore booked a £585m provision in respect of a potential settlement over a four year-period.

Management also said that EBITDA at BetMGM were expected to move into the black on a full-year basis with NGR expected to come in at the upper end of guidance for the unit of $1.8-$2.0bn.

Group EBITDA for the full-year was seen at £1.0-1.05bn before accounting for TAB NZ.

Net debt at period end stood at £2.59bn.

The proposed interim dividend was raised by 5% to 8.9p per share.

As of 1125 BST, shares of Entain were 0.63% lower to 1,349.50p.

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