Entain Plc’s board of directors has raised the company’s full-year EBITDA target to £850-£900 million, citing a solid first-half performance.
As the FTSE100 gaming business informs investors on its UK retail reopening and worldwide expansion projects, Entain presented its interim trading statement this morning, registering total group revenues up 11 percent.
Entain announced that it has achieved ‘twenty-two consecutive quarters of double-digit growth in online, with net revenues up 22 percent in Q2, owing to a +65 percent NGR rise generated by its online sports betting operations’ in its headline results.
Despite German market regulation modifications, which held down Entain’s online NGR performance compared to previous periods, strong Q2 growth was maintained.
Diversified business model
Entain Group CEO Jette Nygaard-Andersen said: “Our diversified business model has enabled us to grow our business in all key markets while navigating channel and product mix changes as retail re-opens and we annualise last year’s restricted sports calendar.”
Entain began reopening its European retail locations in Q2 trade, with the company reporting “positive early trends as restrictions are eased in phases.”
Entain announced that client volumes for its Ladbrokes and Coral UK estates had recovered to roughly 10 percent lower than pre-pandemic levels, and that it was preparing to restore its Italian and Belgian retail operations, which had been closed during 2021 business.
In order to strengthen its online portfolio, Entain completed the acquisitions of top Baltic market operator Enlabs and Portuguese sportsbook Bet.pt in the second quarter, assets that contributed 4 percent of online NGR.
BetMGM’s strong US development momentum
Meanwhile, Entain emphasised BetMGM’s strong development momentum in the United States, describing it as “the number two operator for sports betting and iGaming in the United States with 21 percent market share” – with an H1 NGR of around $350 million.
The board of Entain was able to extend the terms of its existing revolving credit facility to £590 million, supporting the company’s long-term growth strategy, with the FTSE100 company also maintaining a €300 million loan for M&A purposes.
Nygaard-Andersen concluded: “We have a powerful platform at Entain that enables us to deliver consistent growth from our existing markets, whilst also entering new markets, all powered by our industry-leading technology capabilities, business intelligence and analytics.
“Our platform provides us with a significant opportunity to align our business better with our customers and increasingly deliver a wider breadth of exciting products, content and experiences as the worlds of media, entertainment and gaming converge.
“Following our strong first half, we are upgrading our expectations for the full year and we remain confident and excited by the breadth and scale of the long-term sustainable growth opportunities ahead of us.”