Entain PLC on Thursday proposed a higher dividend amid revenue growth and a sound outlook.
The Isle of Man-based sports betting and gaming firm said pretax loss narrowed dramatically to £27.6 million in the first half of 2024 from £448.1 million a year prior.
Notably, costs for recognition of an HMRC settlement liability dropped to £5.9 million from £585.0 million. HM Revenue & Customs had launched an investigation into Entain in 2019. Entain faced allegations relating to bribery offences at its former Turkish unit, sold to its management team in 2017.
Revenue in the recent half-year climbed 6.0% to £2.52 billion from £2.38 billion.
The company declared an interim dividend of 9.3 pence per share, up 4.5% from 8.9p a year prior.
Entain’s incoming chief executive officer, Gavin Isaacs, will join the company on September 2. The appointment of the 25-year gaming industry veteran had been announced in July.
Looking ahead, Entain upgraded its annual guidance. It now expects 2024 online net gaming revenue growth on a proforma basis to be a low single-digit percentage positive, improved from previous guidance that this would be negative by a low single-digit percentage.
The company expects to deliver earnings before interest, tax, depreciation and amortisation in the range of £1.04 billion to £1.09 billion, at least 3.2% higher than £1.01 billion in 2023. Underlying Ebitda in the first half of 2024 was £523.8 million, up 4.9% from £499.4 million in 2023.
Interim Chief Executive Officer & Chair Designate Stella David said: ‘Entain’s H1 results are clear evidence that our hard work improving the group’s operational performance is bearing fruit. Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond.’
‘Building on the progress already made, we are confident that continued execution of our strategic priorities of organic growth, margin expansion and winning in the US will deliver value for all our stakeholders,’ the company said.
Entain shares jumped 7.4% to 562.20 pence each on Thursday morning in London. The stock remains down 59% over the past 12 months.
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