Online gambling boosts Entain
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The owner of Ladbrokes and Coral reported net gaming revenue (NGR) of £3.89bn for the year to 31 December, a 7% increase year-on-year, or 8% on a constant currency basis.
Within that, online NGR rose 13% on a constant currency basis, the ninth consecutive year of double-digit growth. Retail was hit by store closures during the first half, following the introduction of lockdown restrictions in the UK and Europe, and full-year NGR fell 7%.
Group revenues rose 8% to £3.83bn, while underlying earnings before interest, tax, depreciation and amortisation sparked 5% at £881.7m.
Jette Nygaard-Andersen, chief executive, said: "All our major markets have performed well. In particular, BetMGM in the US has delivered a five-time increase in net gaming revenue and is ready to challenge for the number one position across the markets it operates.
"Elsewhere, our retail business has recovered strong and volumes have now returned to 90% of pre-Covid levels, as restrictions have eased and customers have returned to our shops."
Looking to the current year, Entain - which also owns Foxy Bingo, partypoker, Gala and bwin, among others - said retail was "heading towards pre-Covid levels" while online was performing in line with expectations against "tough" prior year comparables.
As at 0915 GMT, shares in Entain were ahead 3% at 1,607.0p.
Victoria Scholar, head of investment at Interactive Investor, said: "Despite tough forecasts versus 2020 during lockdowns, [Entain] managed to report higher earnings year-on-year, which outpaced forecasts.
"However, it has yet to resume the dividend, having halted pay outs at the height of the pandemic amid the uncertainty.
"Entain has the potential to attract further M&A interest this year, having already been approached by DraftKings and MGM over the last year, particularly given the slump in its shares since September."
BetMGM was launched in 2018 and is a 50:50 joint venture with MGM Resorts.
