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Entain PLC left annual guidance unchanged and declared a dividend for the first time since the onset of Covid-19, with the bookmaker promising a ‘progressive’ payout going forward.
It has also announced an acquisition, betting on a ‘leading’ gaming and sportsbook operator in Croatia, which it will buy through a newly established joint venture.
Entain shares were 3.0% higher at 1,347.50 pence each in London on Thursday morning.
The Ladbrokes and Coral owner posted revenue of £2.09 billion for the six months ended June 30, up 19% year-on-year from £1.77 billion.
Underlying earnings before interest, tax, depreciation and amortisation climbed 17% to £471 million from £401.1 million.
Pretax profit, however, tumbled by 70% to £39.5 million from £130.6 million. Entain's bottom-line was hit by a £55.0 million foreign exchange hit, swinging from a £77.1 million tailwind a year earlier.
All-in-all, however, the gambling firm made ‘excellent progress’ during the half.
Chief Executive Jette Nygaard-Andersen commented: ‘I am delighted that more customers are choosing to play with us as we focus on providing them with even better products, engaging content and exciting experiences. This has resulted in our highest ever level of actives in H1, up 57% versus the same period two years ago. Not only is this approach great for our customers, but it also provides us with a broader, more recreational customer base that will support more sustainable long-term revenues.’
Aside from Ladbrokes and Coral, Entain also owns the bwin and partypoker brands. In addition, it has a 50% stake in US brand BetMGM, alongside MGM Resorts International.
Entain said: ‘Following a strong performance in the first half of 2022, delivering net gaming revenue of $608 million, BetMGM remains on track to deliver over $1.3 billion of NGR in 2022.’
Looking ahead, Entain still expects to achieve an Ebitda of £925 million to £975 million for 2022, in line with current consensus. This would be an increase from £881.7 million in 2021.
‘The economic environment remains uncertain in many of our markets, however we remain confident that our customer focus, increasing diversification and proven ability to deliver growth will see us deliver further progress for all stakeholders,’ it said.
Entain said it was implementing a new dividend policy. It is proposing a progressive dividend, starting with a total dividend of £100 million for 2022, to be paid to shareholders in equal instalments in respect of the first half and annual results.
Entain declared an interim dividend of 8.5 pence per share, which would be its first payout since the onset of the pandemic.
Entain said it has partnered with EMMA Capital, an investment firm based in the Czech Republic, to establish a new venture, Entain CEE, to drive expansion in Central and Eastern Europe.
The London listing will own 75% of the economic rights in Entain CEE, with EMMA Capital owning the other 25%. Entain CEE will acquire the SuperSport Group, the gaming and sportsbook operator in Croatia from EMMA. The deal would value SuperSport at €920 million.
Entain will pay €600 million at completion and a further €90 million based on SuperSport's Ebitda for 2022.
EMMA will contribute its 25% stake at an initial implied value of €200 million, also contributing a contingent payment of €30 million.
‘There is an option on EMMA's stake that can be exercised 3 years from closing by either party, giving Entain a path to 100% ownership,’ the company added.
The deal will be financed through a €700 million bridge loan provided by Deutsche Bank, Lloyds, Mediobanca, NatWest, and Santander, Entain said.
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