8th Jul 2021 08:35
(Alliance News) - Entain PLC on Thursday reported first half revenue growth, another quarterly online gambling surge, and bumped up earnings guidance.
Shares in the company were 1.6% higher at 1,836.50 pence each in London on Thursday morning, the best performing FTSE 100 stock.
The Ladbrokes owner said net gaming revenue in the first half ended June 30 was up 11% yearly, helped by a 42% surge in the second quarter alone.
Online net gaming revenue rose 22% in the second quarter, a 22nd successive quarter of growth in its digital arm, Entain noted. Excluding Germany, online net gaming revenue was 32% higher.
"We have delivered another strong performance across the group. Our diversified business model has enabled us to grow our business in all key markets while navigating channel and product mix changes as retail re-opens and we annualise last year's restricted sports calendar," Chief Executive Officer Jette Nygaard-Andersen said.
"Outside Germany where the market is digesting regulatory changes, we saw excellent growth across all our major markets. Our recent acquisitions, Bet.pt in Portugal and Enlabs in the Baltics, have performed ahead of expectations, and BetMGM continues to grow market share in the US, now at 24% across our active markets."
For 2021, Entain now expects earnings before interest, tax, depreciation and amortisation between GBP850 million and GBP900 million, ahead of consensus estimates. Underlying Ebitda in 2020 was GBP843.1 million.
The half did not include all of the delayed 2020 UEFA European Championships. Entain in June said it expected three million people to place bets on the football tournament, roughly twice as many punters at the 2018 World Cup.
In addition, the company flagged plans to boost investment in its in-house games studios, doubling employee numbers and producing new content in all its markets, including the burgeoning US arm.
"Headcount will double to around 300 people across Entain's three in-house studios in the UK, Italy, and India within a year, to deliver exciting, exclusive new products and experiences across all its markets, including the US. CR Games, Entain's UK games studio based near Oldham, Manchester, will initially create 8 new roles taking its headcount close to 50," Entain explained.
"New content includes free to play slots tournaments, believed to be the first of their kind, giving customers a great choice of free games to play and win cash prizes. Over 30,000 customers of Entain's Coral brand in the UK entered in June following launch, with international customers of Gala, Party and bwin expected to join over the summer."
Notably, the company will have access to exclusive Formula 1 themed casino content and games later this year. Entain's PartyCasino and PartyPoker brands sponsor the McLaren F1 team.
"Entain is also developing new experiences for customers using immersive technologies, and plans to upweight this capability at its in-house studios. The group's first VR product for customers - a multi-activity sports club - is due later in the year," it added.
By Eric Cunha; [email protected]
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