UK – Entain delivers 22nd consecutive quarter of double-digit online growthBy Lewis - 12 August 2021
Entain has posted H1 net gaming revenue of £1.792bn, up 11 per cent on a year ago, with underlying Ebitda climbing 12 per cent to £401.1m and profit after tax rising by £69m to £90.9m.
Online NGR was up 28 per cent to £1.587bn – sports rising 55 per cent to £751.1m and gaming 10 per cent to £825.9m – and 38 per cent higher excluding Germany.
Retail NGR was down 46 per cent to £191.3m, impacted by national lockdowns, with an underlying Ebitda loss of £54.4m compared to a £24.7m profit in 2020. The Group says full-year Ebitda remains on course to be in £850m-£900m range.
Entain’s BetMGM joint-venture with MGM Resorts in the US “continues to perform strongly”, with H1 NGR of $357m.
Entain CEO, Jette Nygaard-Andersen, commented on the results: “Entain’s platform continues to deliver. The quality and diversification of our businesses has enabled us to deliver our 22nd consecutive quarter of double-digit online growth, while also making excellent progress on our strategic priorities.
“This performance is not only a result of our industry-leading technology, but also the hard work and dedication of our talented teams of people around the world, and I would like to take this opportunity to thank them.”
The operator cited retail lockdowns, the full sports fixture list, new product releases and excellent customer acquisition throughout the Cheltenham Festival and Aintree Grand National for driving a “strong sports and gaming performance” for its UK Online operations, with sports brands NGR up 40 per cent on a year ago during H1, with sports up 52 per cent and gaming rising 32 per cent.
Entain added: “All brands benefitted from the extended UK lockdown which has driven increased recreational retail type play as well as increased player days and NGR per active.”
On its UK Retail performance, Entain reports sports NGR down 42 per cent year-on-year, with wagers 39 per cent lower and down 36 per cent on a like-for-like basis and machines NGR declining by 31 per cent.
The Ladbrokes Coral operator attributed the exit from tier three Covid restrictions for volumes returning to around 90 per cent of pre-pandemic levels: “Machines have performed particularly well whilst sports continues to recover steadily from the extended period of shop closures.”