Entain Raises FY 2025 Guidance Following Strong H1

Global sports betting and gaming giant Entain has published its interim H1 report, highlighting results that exceeded its leadership’s initial expectations. As a result, the company has updated its guidance and raised its FY 2025 forecasts.

Entain’s H1 Was Very Strong

In the first half of the year, Entain’s total net gaming revenue, including its 50% share of BetMGM, increased by 7% (10%cc). Entain and BetMGM experienced revenue growth of 3% (6% on a constant currency (cc) basis) and 35% respectively. These figures exceeded the company’s initial expectations.

Entain noted that the Q2 results were especially pleasing, despite the tough comparison with Q2 2024 when the Euros soccer tournament was held.

Online net gaming revenue, excluding the US, experienced a 5% increase (8%cc) and was likewise ahead of expectations thanks to strong volumes across the sports betting and gaming segments. The company experienced 21%cc growth in both the UKI region and Brazil, highlighting its ability to maintain growth in both old and new markets.

The strong net gaming revenue mix led to an increase in the online EBITDA margin, exceeding previous expectations. The company’s EBITDA margin guidance, therefore, increased to 25-26%. For context, Entain’s H1 group EBITDA reached GBP 583 million, up 11% year-on-year. This included online EBITDA of GBP 502 million, up 13% YOY, as well as retail EBITDA of GBP 141 million, flat. Including BetMGM, the EBITDA figure stood at GBP 625 million, up 32% YOY.

Speaking of BetMGM, the brand’s H1 results supported Entain’s ambition for the brand to reach EBITDA of over $500 million for the year.

As for Entain as a whole, the company’s updated FY 2025 guidance expects net gaming revenue growth of approximately 7%. The FY 2025 projections also outline group EBITDA of between GBP 1.1 billion and GBP 1.15 billion.

In the meantime, Entain expects GBP 0.5 billion in annual adjusted cash flow in the medium term.

The Company Is Bullish on Its Targets

Stella David, Entain’s chief executive officer, praised the report and the strong performance of both Entain and the BetMGM brand. David was especially pleased with the results of Entain’s ongoing transformation in the wake of various regulatory setbacks and financial hurdles.

Our business is getting stronger, fitter and faster, with these results reinforcing our confidence in driving sustainable underlying growth and generating more than £0.5bn of cash annually in the medium term.

Stella David, CEO, Entain

David was appointed CEO in April, shortly after Gavin Isaacs stepped down. In addition to that, the company announced that it has now appointed Pierre Bouchut, who has served as interim non-executive chair since February, to a permanent non-executive chair position.

According to Entain, the appointments exemplify the company’s commitment to proven and stable leadership.

In the meantime, the company declared an interim dividend of 9.8p per share, +5% year-on-year.