Entain upgrades full-year guidance after strong Q2

8th Aug 2024 07:55

(Sharecast News) - Sports betting and gaming group Entain has lifted its full-year guidance after a stronger-than-expected second quarter along with the revised timing of regulatory implementation in Brazil and the Netherlands, causing shares to surge on Thursday.

The Ladbrokes and Coral owner, which also has a 50% stake in US sports betting giant BetMGM, said 2024 EBTIDA are expected to be between £1.04bn and £1.09bn. Previously, Entain had said that EBITDA would reduce by around £40m from last year's £1.01bn.

The company is also guiding to low single-digit growth in full-year online net gaming revenue (NGR) growth, compared with earlier guidance for a slight dip.

Shares were up nearly 8% at 564.8p in early deals.

Total group NGR rose 6% in the first half, with growth accelerating from 3% in the first quarter to 8% in the second, helped by 12% growth online.

Group EBITDA was up 5% year-on-year at £524m, as a 9% increase in online EBITDA to £445m offset a 11% decline in retail EBITDA to £140m.

The company proposed an interim dividend of 9.3p per share, up 5% on last year.

"Entain's H1 results are clear evidence that our hard work improving the Group's operational performance is bearing fruit. Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond," said interim chief executive and chair designate Stella David.