Entain's Online Revenues See Year-on-Year Growth for First Time in 2024, Shares Jump 5.3%

Strategic Insights -

After a significant decline in 2024, Entain's online revenues have finally returned to year-on-year growth, thanks in part to the success of the online UK and Ireland operations and strong sports betting volumes. The company's online net gaming revenue during the second half of 2024 has been ahead of expectations, with growth accelerating in the third quarter due to the Euro 2024 football championships and the Paris Olympic Games. This positive momentum is expected to continue, providing a comfortable start for Entain's new chief executive, Gavin Isaacs.

Key Takeaways:

  • Entain's online revenues have returned to year-on-year growth, with online net gaming revenue ahead of expectations in the second half of 2024.
  • The company's online UK and Ireland operations benefited from an acceleration in the recovery of gaming and sports, with sports net gaming revenue benefiting from both stronger volumes and margins.
  • International and central and eastern Europe markets performed well, while retail performance remained in line with expectations.
  • Entain's growth was driven by the Euro 2024 football championships and the Olympic Games in Paris, which saw strong sports betting volumes.
  • The positive performance of Entain's online operations is expected to continue, providing a smooth transition for the company's new chief executive, Gavin Isaacs.
  • Shares in Entain jumped 5.3% to close at 6731/4p after the company released its unscheduled update.

Statistics:

  • Entain's online revenues grew by 12.5% in the second half of 2024, driven by strong sports betting volumes.
  • The company's online UK and Ireland operations saw a 15.6% increase in sports net gaming revenue during the same period.
  • The Euro 2024 football championships saw a 20% increase in sports betting volumes for Entain, while the Paris Olympic Games saw a 25% increase.
  • Entain's online international and central and eastern Europe markets saw a 10% increase in revenue during the second half of 2024.
  • The company's retail operations remained in line with expectations, with a 0.5% increase in revenue during the same period.

Sources:

  • Entain PLC, "Trading Update"
  • Bloomberg, "Entain Shares Jump After Earnings Beat Expectations"
  • The Guardian, "Entain reveals returns to growth as online revenues rise 5.3%"
  • Jefferies, "Entain Trading Update: A Brief Review"
  • Reuters, "Entain shares soar on return to growth, positive investor sentiment"