Entain: FTSE 100 giant’s strategy ‘bearing fruit’ as Ladbrokes owner’s loss narrows
Shares in Entain climbed ten per cent as the gambling and entertainment company reported a narrower loss and upgraded its guidance amid signs the FTSE 100 company’s strategy is “bearing fruit.”
The Ladbrokes owner booked a loss after tax of £47m in the first six months of the year, clawing back some profit after it posted a loss of nearly £503m in the first half of 2023.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) came in at £524m, up five per cent year on year.
Total group net gaming revenue (NGR) including the company’s share of US betting firm BetMGM, rose six per cent to £2.56bn. Although NGR fell six per cent in the UK and Ireland region, it was boosted by favourable Euros 2024 results for the bookie.
Entain said the improvement in net gaming revenue, along with slower enforcement of regulations in Brazil and the Netherlands, had led it to upgrade guidance.
The company said it now expected low single-digit “positive” rather than negative growth in online NGR and group EBITDA of between £1.04bn and £1.09bn.
BetMGM, a joint venture between FTSE 100 constituent Entain and MGM Resorts International, stabilised its market share and is anticipating an expansion into the NFL later this year. In July, it reported a first-half adjusted loss of $123m (£95.8m).
Interim chief Stella David said: “Entain’s first half results are clear evidence that our hard work improving the Group’s operational performance is bearing fruit. Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in the second half and beyond.
“Our focused execution underpins the Group’s performance so far this year, and we are excited by the opportunities ahead,” she added.
It comes ahead of the arrival of new chief Gavin Isaacs, who is set to join Entain in early September, while David will succeed as chair at the end of that month.
He will have a tough job ahead of him, trying to return some value to shareholders after the London-listed company’s shares have spiralled down nearly 63 per cent over the past year and are 48 per cent year to date.