Entain (ENT) H2 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with a return to organic growth in NGR and EBITDA, driven by operational improvements and strategic focus on must-win markets: U.K., Brazil, and the U.S.

• Results finished at the top end of upgraded guidance, with positive momentum across the portfolio and key performance indicators in the green for core markets exiting Q4.

• Leadership transition ongoing, with a focus on operational continuity and performance.

• Growth acceleration achieved in key markets with a more agile structure and focused execution.

• Momentum continues into 2025, with a clear strategy to deliver shareholder value.

Financial highlights

• Net gaming revenue (NGR) reached £6.0 billion, up 9% year-on-year, or 4% on a pro forma basis; NGR ex. BetMGM £5.2 billion (+9% cc).

• EBITDA was £1.089 billion, up 12% year-on-year, finishing at the top end of guidance; underlying free cash flow £626 million.

• Adjusted EPS was 46.9 pence (29.9 pence including BetMGM).

• Liquidity remained strong with over £1 billion in available cash; leverage ended at 3.1x (3.5x including DPA); net debt £3,339 million.

• Second interim dividend of 9.3 pence per share, totaling 18.6 pence for the year (£119 million).

Outlook and guidance

• 2025 expected to deliver mid-single digit online NGR growth, in line with markets, driven by volume; online EBITDA margin expected at ~25%, flat year-on-year despite Brazil taxation impact.

• Retail EBITDA expected to be broadly flat YoY; BetMGM forecasted to deliver $2.4–$2.5 billion net revenue and be EBITDA positive in 2025.

• Clear path to over £500 million annual adjusted cash flow pre-dividends in the medium term, with annual cash generation to exceed £0.5 billion from 2028+.

• Online market NGR CAGR expected at 5–8% over the medium term.