It seems like a great time to be the new CEO of Entain.
Gavin Isaacs, Games Global chairman and former Scientific Games CEO, will assume that role on September 2, taking over for current interim CEO Stella David.
Isaacs’ tenure will begin after the global sports betting and gaming company reported better-than-expected performance in the first half of 2024.
Q2 was a strong period for Entain, in part thanks to stronger-than-expected win margins for EURO 2024 competition. Total net gaming revenue (NGR) was up 6% overall to £2.9 billion and Group EBITDA (earnings before interest, taxes, depreciation, amortization, and restructuring) was up 5% to £523.8 million.
“Entain’s H1 results are clear evidence that our hard work improving the Group’s operational performance is bearing fruit," commented David. "Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond.”
BetMGM's performance
2024’s been deemed a “year of investment” for BetMGM by both Entain and MGM Resorts leadership. Entain’s 1H2024 report showed that BetMGM is stabilizing around 13% market share in the US legal sports betting industry, still far behind the top dogs of FanDuel and DraftKings.
However, BetMGM delivered accelerating net revenue momentum through the first six months of the year, generating $1.0 billion. Q2 NGR was up 9% year-over-year following 4% YoY (year-over-year) growth in Q1 driven by strong acquisition and retention metrics, with improving app and product capabilities and successful engagement campaigns.
The company expects further investment in improving the product and delivering sports product differentiation via single account, single wallet in Nevada ahead of the 2024 NFL season.
BetMGM is also a major player in the iGaming space, and the second half of the year should also see continued investment in strengthening its position there.
Upgraded guidance
Entain credits the stronger-than-expected Q2 and revised regulatory implementation timing - namely in the U.K. and Ireland - with its decision to upgrade its FY24 guidance.
The company is now expecting low single-digit positive proforma growth in online NGR (from low single-digit negative) and Group EBITDA is expected to be in the range of £1.04-£1.09 billion.
According to its investor presentation, Brazil is currently Entain’s fastest growing market, with online NGR growing 48% in Q2 alone there, moving from double-digit YoY NGR decline in 2023.
The first half also saw Entain onboard a new management team that is now exclusively focused on the U.K. & Ireland, where the company’s faced some regulatory headwinds of late.
