- Entain’s adjusted earnings before nasties increased by 5% to £1.1bn last year
Betting giant Entain saw underlying profits hit the top end of upgraded guidance last year amid a robust recovery across the British Isles.
The Ladbrokes and Coral owner saw its adjusted earnings before nasties increase by 5 per cent at constant currency rates to £1.1billion, driven by expanding online trade.
Its digital net gaming revenue (NGR) rose by 11 per cent, supported by a quicker-than-anticipated return to growth in the UK and Ireland during the third quarter and surging sales in Brazil and its Supersport business in Croatia.
Entain’s retail segment also recorded a healthy performance, with NGR rising by 3 per cent thanks to solid fourth-quarter results.
Total NGR, including its 50 per cent share in the BetMGM joint venture, was 6 per cent higher at £5.2billion.
The Aintree Grand National horse race won by I Am Maximus had the largest volume of bets placed by Entain punters, followed by the NFL Super Bowl and Spain’s defeat of England in the Euro 2024 football final.
Jumping well: Ladbrokes owner Entain saw underlying profits hit the top end of upgraded guidance last year
However, Entain still reported a £461million post-tax loss after taking £876million in impairment charges related to recent regulatory changes and elevated competition in particular smaller markets.
The FTSE 100 group admitted that its ‘previous approach’ to implementing legal changes had damaged the UK and Ireland business.
Britain’s Gambling Commission has recently introduced tighter safety rules, including extra checks for internet gamblers who lose at least £500 a month and doubling the minimum spin speed for online games.
Entain said it had now ‘passed through the most significant operational impacts’ of prior regulatory adjustments and expects to achieve mid-single-digit per cent online NGR growth this year.
It noted trade had ‘started the year strongly,’ with BetMGM enjoying its best-ever Super Bowl results.
Stella David, the company’s interim chief executive, said 2024 was ‘a year of transformation’ for Entain.
‘I am delighted to see that our strategic and operational improvements are translating into strong performance; clear evidence that our strategy is delivering,’ she added.
David is running Entain while the firm searches for a successor to Gavin Isaacs, who quit unexpectedly in February after just five months in charge.
Analysts have suggested tensions between Isaacs, the former boss of slot machine maker Scientific Games Corporation, and other board members might have caused him to step down.
Australian-born Isaacs arrived last September as the replacement for Jette Nygaard-Andersen, whose tenure was impaired by a £615million bribery settlement related to a Turkish-facing business Entain once owned.
In December, Australian authorities sued Entain amid allegations of ‘serious and systemic’ violation of anti-money laundering rules. Entain said on Thursday that it was ‘hopeful of making progress towards a resolution’ on the matter in 2025.
Derren Nathan, head of equity research at Hargreaves Lansdown, said the company ‘may have been left reeling’ by the departure of Isaacs, but it nonetheless ‘seems to be getting its house in order.
‘A return to organic growth is a significant milestone, although investors will want to see evidence it can deliver on a medium-term ambition to generate meaningful cash flow.’
Entain shares were 1.7 per cent up at 755p on early Thursday afternoon, although their value has shrunk by around 10 per cent in the past year.
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