Entain performance ahead of previous expectations in trading update for 2021

Entain, the parent company of Ladbrokes and Coral, revealed its core profits in 2021 would be ahead of previous expectations in a trading update on Thursday.

Ebitda (earnings before interest, taxation, depreciation and amortisation) was set to be in the range of £875 million to £885m, compared to a previous forecast of £850-£900m

The company said its performance in 2021 had been strong, with group net gaming revenue (NGR) up seven per cent year-on-year.

Online NGR was up 12 per cent for the year, with strong growth in major markets where online NGR was up 18 per cent excluding Germany, which has been impacted by a new regulatory regime.

However, Entain's run of 23 consecutive quarters of double-digit online growth ended in the fourth quarter of last year when online NGR fell nine per cent compared to strong trading in the equivalent period in 2020.

Revenues in Entain's betting shops were down three per cent in 2021 due to Covid-19 restrictions. However, with most shops open during the fourth quarter, NGR was up 60 per cent year-on-year in that period, with volumes returning to within ten per cent of pre-Covid levels.

The news follows an update from BetMGM, Entain's US joint-venture with MGM Resorts, on Wednesday, which raised its 2022 revenue forecast to more than $1.3 billion, up from $1bn. It also anticipates reaching positive ebitda in 2023.

BetMGM is the number two operator for sports betting and iGaming in the US across the markets in which it operates, with a 24 per cent market share for the three months to November 2021.

Entain chief executive Jette Nygaard-Andersen

Chief executive Jette Nygaard-Andersen said: "2021 has been a successful and eventful period for Entain, and our market-leading platform has driven another year of strong, sustainable and diversified growth.

"All of our major markets have performed well. BetMGM, our hugely exciting business in the US, has been a particular highlight with full year net gaming revenue ahead of expectations and an upgraded outlook for 2022.

"We have also made significant operational progress and have continued to provide our customers with even better content, experiences and excitement as the worlds of media, entertainment, technology and gaming converge.

She added: "We continue to see significant growth opportunities ahead of us, with a total addressable market of around $160bn across our new and existing markets, as well as in emerging areas of interactive entertainment.

"We believe these opportunities will enable us to at least treble the size of our business. As a result, we remain confident in our prospects for the year ahead and beyond."

Entain's share price was up 5p at 1,714.5p on Thursday afternoon.

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