Entain sees growth ahead of expectations in UK and Ireland driven by rebound in gaming, sports betting in H2

Entain has announced a marked improvement in its operational performance for the second half of 2024 and this positive shift follows the appointment of Gavin Isaacs as CEO, effective September 2. Isaacs, formerly CEO of Scientific Games, is working closely with interim CEO Stella David to ensure a smooth transition. David is scheduled to assume the role of company chair on September 30.

The company's latest trading update highlights a turnaround, particularly in its UK and Ireland (UK&I) division. This region has seen a quicker-than-anticipated return to year-on-year growth, driven by a rebound in both gaming and sports betting. 

The UK&I business, which experienced a 6% drop in net gaming revenue (NGR) during the first half of the year due to regulatory changes, has since benefited from improved performance metrics, with stronger volumes and margins in sports betting.

Gavin Isaacs

“In the UK, we have KPIs that are moving forward at a pace that gives us confidence in getting back to growth in that critical market for us,” David noted during the company’s H1 results. 

The company has introduced several initiatives to enhance performance, including simplified customer journeys, a new Bet Builder product, and loyalty programs such as Lad Bucks and Coral Coins.

International and Central and Eastern European (CEE) regions have also contributed to the group's positive performance. The CEE market, in particular, showed impressive growth, with online revenue increasing by 130% and betting revenue surging by 213% to £181.5 million ($237.47 million).

Stella David 

In the US, Entain’s joint venture with MGM Resorts, BetMGM, has made positive momentum. The platform now features enhanced parlay and player prop offerings, powered by Angstrom’s market pricing capabilities.

Additionally, BetMGM has introduced a Single Account Single Wallet feature in Nevada, allowing customers to place bets both online and across the state’s nine retail sportsbooks using a single digital wallet. This feature aims to streamline the betting experience ahead of the NFL season.

Despite the encouraging results, Entain has opted not to revise its guidance beyond the outlook provided in its recent half-year report. The company's stock rose by 8% to £6.90 ($9) per share following the announcement. 

However, the share price remains 40.34% below its level from September 2023, reflecting ongoing financial and regulatory challenges. These include a £615 million ($804.65 million) deferred prosecution agreement and criticisms of its merger and acquisition strategy, alongside sluggish growth in core markets.