Thanks to the positive results of EURO 2024, Entain increased its net gaming revenue to £2.9 billion in the first six months of the year.
It seems like a great time to be the new CEO of Entain.
Gavin Isaacs, Chairman of Games Global and former CEO of Scientific Games, will assume the role on September 2, succeeding current interim CEO Stella David.
Isaac’s tenure begins after the global sports betting and gaming company reported better-than-expected performance in the first half of 2024.
The second quarter was a strong period for Entain, partly due to stronger than expected profit margins at EURO 2024. Total net gaming revenue (NGR) increased 6% to £2.9 billion and group EBITDA (earnings before interest, tax, depreciation, amortisation and restructuring) increased 5% to £523.8 million.
“Entain’s first half results are clear evidence that our hard work to improve the Group’s operating performance is bearing fruit,” commented David. “While there is still more work to be done, we are pleased with the progress to date and look forward to building on these solid foundations in the second half and beyond.”
BetMGM’s performance
2024 has been dubbed an “investment year” for BetMGM by Entain and MGM Resorts leadership. Entain’s H1 2024 report showed BetMGM stabilizing at around 13% market share in the U.S. legal sports betting industry, still well behind leaders FanDuel and DraftKings.
However, BetMGM saw accelerated net revenue momentum in the first six months of the year, generating $1.0 billion. Second quarter net revenue increased 9% year-over-year following 4% year-over-year growth in the first quarter, driven by strong acquisition and retention metrics, enhanced app and product features, and successful engagement campaigns.
The company expects to continue investing in improving the product and delivering sports product differentiation through a single account and wallet in Nevada ahead of the 2024 NFL season.
BetMGM is also a major player in the iGaming space and is likely to continue investing in strengthening its position there in the second half of the year.
Improved instructions
Entain attributes its decision to raise its FY 2024 guidance to the stronger-than-expected second quarter and the revised timeline for regulatory implementation – particularly in the UK and Ireland.
The Company now expects positive pro forma low single digit growth in online NGR (from negative low single digit) and Group EBITDA is expected to be in the range of £1.04-1.09 billion.
According to the investor presentation, Brazil is currently Entain’s fastest growing market, with online NGR growing 48% in the second quarter alone and set to break from a double-digit year-on-year NGR decline in 2023.
During the first half of the year, Entain also brought on board a new management team that is now focused exclusively on the UK and Ireland, where the company has recently struggled with some regulatory issues.
