Entain – Revenues Rise As Active Customers Reach Record Levels

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Entain PLC (LON:ENT) saw its full-year Net Gaming Revenue (NGR) rise 10% to £4.3bn, ignoring the effect of exchange rates and excluding the BetMGM joint venture in the US. That reflected a 66% rise in Retail and a 2% decline in Online as comparative periods lapped Covid lockdowns.

BetMGM reported NGR of $1.44bn, an increase of 71%, and is on track to be cash positive in the second half of 2023. Including Entain’s 50% stake in this joint venture, Entain’s NGR grew 15%.

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The number of active online customers rose to record levels, up 7% on last year

At the group level, reported underlying cash profits (EBITDA) rose 13% to £993m, reflecting the increase in revenues.

Underlying net debt increased from £2.09bn to £2.75bn thanks to continues spend on acquisitions. Free cash flow fell from £388m to £346m.

Entain has started 2023 with positive momentum but continues to face regulatory headwinds.

A dividend of 8.5p per share has been announced, bringing the total for the year to 17p per share.

The shares were broadly flat following the announcement.

Entain's Earnings

Aarin Chiekrie, equity analyst at Hargreaves Lansdown:

“Entain’s profits hit the top end of guidance as bettors and gamblers seem undeterred by current cost-of-living pressures. The Coral and Ladbrokes owner saw active customer numbers spike as the winter World Cup gave punters plenty to sink their teeth into.


And platforms like Foxy Bingo and Partypoker haven’t lost their appeal either. But it’s no surprise to see to see annual growth heavily biased towards the retail division, as last year’s comparative period laps times when shops were shut due to lockdowns.

BetMGM, the joint venture in the US, continues to shine bright – giving Entain some healthy exposure to the US market. Recent performance has been impressive and cash profits should start to flow in the second half of the year.

There had previously been speculation that MGM would look to take full control, but MGM’s CEO has recently quashed those rumours. For now, it will remain a joint venture, but we wouldn’t rule out a takeover bid in years to come.”

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