Entain shared its interim results for the first half of the year on Thursday, with a total net gaming revenue growth of 11%.
The sports betting, gaming and interactive entertainment group has seen overall strong performance across H1, with online net gaming revenue up 28%, driven by “strong underlying performances in all key markets,” as well as a full sporting calendar and longer lockdown restrictions in retail.
The exception to this online growth was Germany, where strict regulations have impacted the year. Excluding said country, the group’s online net gaming revenue growth was 38%. Also excluding Germany, at the end of H1, 98% of the net gaming revenue was from markets.
On the German situation, the company said on a press release that “the market continues to digest the new regulatory regime and tax change.” The group’s slots and poker business are operating in compliance with the Tolerance Policy that came into effect from October 2020, while other operators “have not been as compliant, creating an uneven market.”
These figures mark the 22nd consecutive quarter of double-digit online growth for the group, while other business developments continued to perform strongly.
One of them is BetMGM, the group’s joint venture in the US with MGM Resorts, which reported net gaming revenue of $357 million and positioned itself as the number two operator for sports-betting and iGaming across the country with 22% market share, as well as number one operator in iGaming with 30% market share.
Other financial highlights of the report include EBITDA up 12% at £401m, and group profit after tax for continuing operations £91m, up £69m.
On the positive results for H1, Jette Nygaard-Andersen, Entain’s CEO, said: “Entain’s platform continues to deliver. The quality and diversification of our businesses has enabled us to deliver our 22nd consecutive quarter of double-digit online growth, while also making excellent progress on our strategic priorities.”
In the US, Nygaard-Andersen, who was appointed to the role during the quarter following Shay Segev’s departure, said it is expected that BetMGM will be operational in around 20 states, representing 33% of the US adult population, “over the next 12 months.” It currently is live in 13 jurisdictions, having grown from just 3 states at the start of 2020.
In April, Entain and MGM Resorts announced a further combined investment for 2021 of $450 million to support this continued growth, taking the total combined investment to $660 million by the end of the year, with an expected goal of achieving long term market share of 20/25% in North American online sports-betting.
Additionally, as progress is being made to legalise sports-betting and iGaming in Canada, BetMGM expects “to be active in that market when it opens.”
Due to the strong first half performance, the company is confident it will achieve full year EBITDA in the range of £850m to £900m.