Entain’s net gaming revenue in the first half of 2021 hit $2.48 billion, according to interim results released today. Despite the difficulties brought by the new gambling laws in Germany, the company enjoyed a strong first half of the year. For H1 2021, Entain’s online net gaming revenue grew 28%.
Entain Unveils Interim Results for H1 2021
Entain plc, the global sports betting, gaming and interactive entertainment group, released today its interim results for the six months ending June 30, 2021. The company outlined that it has seen strong financial performance in H1, driven by its robust and diversified business model. In H1 2021, Entain’s net gaming revenue (NGR) hit $2.48 billion (£1.79 billion). This marked an 11% increase when compared to H1, 2020, when NGR halted at $2.23 billion (£1.60 billion).
Interim gross profits in the first half of 2021 hit $1.57 billion (£1.14 billion), up 11% from the $1.42 billion (£1.02 billion) for the same period last year. According to the interim results, in the first half, EBITDA (earnings before interest, taxes, depreciation and amortization) reached $555.9 million (£401.1 million). This marked a 12% increase when compared to H1 2020, when EBITDA hit $497 million (£358.9 million).
The Company Sees Strong Performance of Online Operations
Entain acknowledged that in H1 2021, online NGR grew by 28%. The company also said that it has recorded the 22nd consecutive quarter with double-digit online growth. Excluding Germany, where new regulatory rules have impacted the market, online NGR was up 38%.
The interim report revealed that the growth in online operations resulted in strong performances in all key markets. Additionally, Entain did not miss saying that the results were boosted by the return of the full sporting calendar and the lifting of lockdown restrictions for retail venues.
Focusing on the online operations, online gaming NGR in the first half of 2021 hit $1.14 billion (£825.9 million). This marked a 10% increase compared to the $1.04 billion (£752.6 million) in gaming NGR recorded for the same period last year. On the other hand, online sports NGR hit $1.04 billion (£751.1 million) in H1 2021, up 55% from the $671 million (£484.5 million) recorded in H1 2020.
Entain has a long runway for sustainable growth built into our core business.“
Jette Nygaard-Andersen, CEO, Entain
Jette Nygaard-Andersen, CEO at Entain, shared her excitement about the results, saying that the company’s platform continues to deliver. She acknowledged that besides quality and diversification, the H1 2021 performance is also the result of the dedication and hard work by Entain’s professionals around the world. Nygaard-Andersen added that she would like to thank Entain’s employees for their efforts. Additionally, she revealed that besides online operations growth, Entain has made significant progress on its strategic priorities.
UK and US Online Markets Grow, Hiccups in Germany
Entain’s interim report revealed that a 46% decrease to $265 million (£191.3 million) in revenue was observed by its UK retail operations – Coral UK and Ladbrokes. This was the result of temporary venue closures introduced due to the pandemic. On the bright side, Entain said that its online business in the UK grew by 31% during H1 2021.
Elsewhere, in Germany, Entain acknowledged that the new regulatory and tax change has impacted the financial results in H1. However, the company revealed that the impact remains in line with its “original estimates, albeit a different mix.” Besides the new rules, Entain stressed that other operators that have not been as compliant have created “an uneven market.”
Across the ocean, in the US market, Entain revealed that its joint feature with MGM Resorts – BetMGM performed extremely well in H1 2021. Additionally, the company said that BetMGM is also well positioned for further success throughout the second half of the year. Entain added that the brand solidified its place as a #2 operator in the fast-growing sports betting and iGaming market in the country. Additionally, the company revealed that it expects BetMGM to be operational in approximately 20 states, which represent 33% of the US adult population, in the next 12 months.