Entain (ENT) H1 2024 earnings summary

Executive summary

• H1 2024 delivered strong underlying growth and sports margin outperformance, especially during the UEFA Euros, with operational improvements in Brazil and the U.K. and enhanced product and technology initiatives.

• BetMGM performance improved with stabilised 13% US market share and sequential revenue growth; further investment planned to maximise future growth.

• Project Roma/Romer efficiency program target increased to at least £100 million net savings by 2026, with recurring annual savings identified.

• Leadership transition planned: Gavin Isaacs appointed CEO (effective September 2024), Stella David to become Chair.

Financial highlights

• Group NGR up 6% year-on-year (+8% cc), flat on a pro forma basis; Online NGR (ex US) up 9% (+11% cc); CEE NGR up 126% (proforma +12% cc); Brazil NGR up 28% cc.

• EBITDA of £524 million, up 5% year-on-year; adjusted EPS ex-US at 21.0p; dividend per share 9.3p (+5% YoY).

• Net debt at £3,329m; available cash over £1.3bn; leverage at 3.2x (3.7x including DPA liability).

• Underlying free cash flow at £324 million, slightly improved year-on-year.

Outlook and guidance

• Upgraded FY24 Online NGR growth to low single-digit positive (from negative); Group EBITDA guidance raised to £1,040m–£1,090m, reflecting Q2 outperformance, regulatory timing, and FX headwinds.

• Project Roma/Romer net savings target increased to at least £100 million by 2026; online EBITDA margin target 28% by 2026.

• ETR expected at 25% for full year; capex c£255m plus c£25m license costs.