Financial round-up: Entain H1 revenue increases 11%, Flutter’s rises by 28%

Global sports betting operators Entain and Flutter Entertainment have both postedhealthy revenue rises for the first half of the 2021 financial year.

Ladbrokes and Coral owner Entain saw its net gaming revenue (NGR) rise by 11% year-on-year up to £1.8bn ($2.49bn) for the first six months of 2021 up to 30 June, on a reported basis. Total revenue increased by 12% to £1.77bn, while gross profit saw a respectable rise of 11%. Underlying EBITDA was up 12%, coming in at £401.1m.

The operator, which changed its name from GVC Holdings last November, outlined Q2 2021 as being the 22nd consecutive quarter that has seen double-digit online growth. Online NGR was up 38% on a constant currency basis, excluding the newly regulated German market.

The impact of the pandemic, which caused much of Entain’s land-based business to be closed for the majority of the past 18 months, saw the operator’s retail NGR fall by 46% although all venues in England reopened on 17 May.

The operator mentioned that its US joint venture with MGM Resorts, BetMGM, reported NGR of $357m for H1 and is now the number two operator for sports betting and online gaming in the US, gaining 22% of the market share.

Entain CEO Jette Nygaard-Andersen, said: "This performance is not only a result of our industry leading technology, but also the hard work and dedication of our talented teams of people around the world, and I would like to take this opportunity to thank them."

Meanwhile, Paddy Power operator Flutter announced a 28% revenue rise for H1 compared to the year prior, with group revenue up to £3.1bn. However, adjusted group EBITDA fell 13% down to £597m on an adjusted pro forma basis, while profit before tax was up by a significant 221% on a reported basis, up to £77m. Net debt was reduced by 7%, while the number of average monthly players rose by 40%. The operator’s US operations saw a revenue growth of 159%, up to £652m.

Flutter CEO Peter Jackson said: "The first half of 2021 exceeded our expectations as we made substantial progress against our operational and strategic objectives while maintaining excellent momentum in growing our player base. The second half of the year has started well and we look forward to making further progress in the coming months."

Flutter completed its acquisition of Canadian gaming operator The Stars Group (TSG) on 5 May 2020, which created a merged entity worth £3.8bn.

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