Slaying Historic Demons, BetMGM Joint-venture A Winner for Entain in H1
Marked by fabulous 55 percent year-on-year growth in Net Gaming Revenue (NGR) for its US BetMGM sportsbook joint-venture, Omnichannel Entain has drawn a line under historic aberrations and joined the H1 financials gold rush.
Entain reported a 19 percent group wide increase in NGR for the six-months, ending 30 June.
Online NGR rose 15 percent, boosted by 23 percent more digital customers. Retail grew by 12 percent.
Star of the show was undoubtedly BetMGM, Entain’s US joint-venture with MGM Resorts International. Its H1 NGR topped US$944 million (£740m), a 55 percent increase from the first half of 2022.
Entain reported a pre-tax profit of £287.6 million (US$366.87m) and a post-tax loss of £502.5 million (-US$641.01m).
The half was marked by several significant acquisitions, notably Poland’s dominant gambling company, STS Holdings, Angstrom Sports, 365Scores and a partnership with New Zealand’s TAB NZ.
Special mention in the H1 report was given to Entain’s ongoing investigation by the British tax authorities over historic money laundering and responsible gambling failings in Turkey.
Past, Another Country
Entain, mothership of iconic UK High Street brands Ladbrokes and Coral, has set aside £585 million (US$746.26m) for a potential settlement, payable over four years, the company reported.
“This has been another period of strong performance for Entain as we make clear strides towards delivering our strategic ambitions,” affirmed Entain CEO Jette Nygaard-Andersen.
“In particular, we are making excellent progress in broadening our customer base and deepening our audience engagement, as evidenced by the record number of active online customers on our platform.
“BetMGM continues to show momentum and backed by our technology and capabilities we are excited by the improvements we are delivering for customers in the US.
“I’d like to thank all my Entain colleagues around the world for their hard work and dedication in delivering this performance. This clear focus on driving sustainable long term growth combined with our global operating capabilities underpins our confidence in our prospects for FY23 and beyond and delivering value for our shareholders.”
Referring to the ongoing tax investigation, Entain Chair Barry Gibson said: “We are pleased to be making good progress towards drawing a line under this historical issue, which relates to a business that was sold by a former management team of the Group nearly six years ago.
“We have been working closely with the CPS throughout this process, and they have recognised our extensive co- operation. Following a complete overhaul of our business model, strategy and culture in the last few years, the Entain of today bears no resemblance to the GVC of yesterday.”
