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Entain losses narrow despite US venture struggling to gain market share

Published 08/08/2024, 08:19
Updated 08/08/2024, 09:40
© Reuters Entain losses narrow despite US venture struggling to gain market share
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Proactive Investors - Shares Entain PLC (LON:ENT) jumped 9% to 970p after the Ladbrokes owner reported an early return to online revenue growth, though overall the group remained lossmaking in the first half.

It tallied up a £55.7 million operating loss in its BetMGM US-based joint venture, extending the previous year’s interim losses by £7.2 million.

Across the whole group, the FTSE 100-listed bookmaker reported 6% year-on-year revenue growth, weighted to the second quarter, but underlying profit before tax fell 13%.

Group losses after tax totalled £46.9 million, which was a significant improvement from the £448 million loss penned in the 2023 interims.

Entain has signposted 2024 as a year of investment in capturing market share in the US via BetMGM.

But while BetMGM’s revenues accelerated in the first half, its market share stayed still at 13%, as detailed in a separate announcement last month, with BetMGM reporting net revenue of $1 billion (£790 million), up 6% year on year on a constant currency basis.

Entain’s mixed financial performance has caused its share price to fall more than 60% over the past 12 months, but “our hard work improving the group's operational performance is bearing fruit”, said interim chief executive Stella David.

“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.”

Entain will next month welcome its new permanent chief executive Gavin Issacs, an industry veteran whose experience is expected be key to turning Entain’s fortunes.

Read more on Proactive Investors UK

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