Entain (ENT) H1 2024 earnings summary

Executive summary

• Delivered strong H1 2024 results with 6% NGR growth (+8% cc), 5% EBITDA rise to £524m, and outperformance in Q2 driven by operational improvements and favorable sports margins, especially during the Euros.

• Strategic focus on organic growth, margin expansion, and U.S. market development, particularly through BetMGM, which showed sequential revenue growth and stable 13% U.S. market share.

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

• Leadership transition: Gavin Isaacs appointed CEO effective September 2024, with Stella David moving to Chair role.

Financial highlights

• Group NGR: £2,555.7m (+6% YoY); EBITDA: £524m (+5% YoY); adjusted EPS (ex US): 21.0p; dividend per share: 9.3p (+5% YoY); available cash >£1.3bn; net debt: £3,329m; leverage: 3.2x (3.7x incl. DPA).

• Online NGR (ex US) up 9% (+11% cc); Retail NGR up 1% reported, down 4% pro forma; CEE NGR up 126% (proforma +12% cc).

• Free cash flow at £324m; group EBITDA margin 20.5%; online EBITDA margin 24%.

• Interim dividend of £60m proposed, payable in September 2024.

Outlook and guidance

• Upgraded 2024 guidance: full-year online NGR pro forma growth now expected to be low single-digit positive; 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 £100m by 2026; online EBITDA margin target 28% by 2026.

• Confident in exiting 2024 with growth in key markets, especially the U.K. and Brazil.