Entain – Euro 24 brings home guidance upgrade
- First half underlying net gaming revenue (NGR) flat at £2.6bn
- Underlying cash profit (EBITDA) up 5% to £524mn
- Full-year net gaming revenue (NGR) growth guidance upped to low single-digit positive from low single-digit negative. EBITDA guidance range £1,040-£1,090mn
Derren Nathan, head of equity research, Hargreaves Lansdown:
“Entain is one of the FTSE 100 top risers this morning following the release of its first half results. Net gaming revenue (NGR) growth accelerated in the latter part of the Ladbrokes and Coral owner’s first half, helped by results going in the bookie’s favour at the Euro 24 football tournament. Takings were down in the UK & Ireland reflecting regulatory headwinds in the online segment, but NGR was still better than expected. The decline was more than offset by a strong performance overseas where the regulatory breeze was blowing in the group’s favour.
But management isn’t just letting the market drive the group’s fortunes. It’s also identified further cost savings, increasing the annualised target for project Romer, Entain’s efficiency drive, to £100mn for 2026. The guidance upgrade should provide some reassurance to investors in light of slower-than-hoped progress towards profitability in its US joint venture BetMGM. There are some really exciting opportunities over the long-term and the current valuation somewhat derisks the odds of a successful wager for those considering a purchase of Entain shares.”
