Entain Profits Surge on Online Growth Despite Regulatory Challenges in Key Markets

The owner of Ladbrokes and Sportingbet, Entain, has expressed confidence in meeting market expectations for 2025 following a strong performance in 2024. The company reported underlying adjusted earnings of £1.09 billion for the year ending December 31, 2024. Total net gaming revenues, excluding its US joint venture BetMGM, climbed by 7 per cent to £5.16 billion, driven largely by robust online growth in the final quarter of the year.

In the UK and Ireland, online net gaming revenues saw year-on-year growth return ahead of schedule, with a notable 21 per cent increase in the last quarter. Spending per customer on sports and gaming in the UK also rebounded for the first time since 2021. Major sporting events contributed to this growth, with the Grand National registering the highest volume of bets in the UK. Similarly, the Super Bowl attracted significant engagement globally, leading to two million bets placed.

Brazil emerged as a strong market for Entain, with net gaming revenues climbing by 41 per cent year-on-year, including a staggering 65 per cent rise in the final quarter. However, the company faced regulatory pressures in regions such as Brazil, Belgium, and the Netherlands, resulting in an impairment charge of £476.4 million in 2024. Despite these challenges, Entain reduced its pre-tax loss to £357.4 million from £842.6 million in the previous year, aided by the scaling back of underperforming overseas ventures.

Entain’s US joint venture, BetMGM, is set to deliver revenues of between $2.4 billion and $2.5 billion this year as it becomes a profitable enterprise. The company is optimistic about the opportunities in the expanding US market, highlighting this as a key area of growth moving forward.

Interim chief executive Stella David described 2024 as a “year of transformation.” She noted the return to organic growth as the beginning of a new era for the business and reaffirmed her focus on maintaining positive momentum. Entain has yet to name a permanent chief executive after the abrupt departure of Gavin Isaacs, with David stepping in temporarily for the second time in under two years. She assured shareholders that the search for the right long-term candidate is ongoing.

Entain has grown into one of the world’s largest betting companies since its inception as GVC in 2004, thanks to a consistent strategy of acquisitions. The business owns prominent brands such as BetCity, Coral, Foxy Bingo, and Party Poker, as well as operating Tab NZ under a strategic partnership. While shareholder sentiment remains broadly positive due to the recent performance, analysts have raised concerns about the leadership uncertainty following Isaacs’ departure.

Shares in Entain rose as much as 7 per cent in early trading on the announcement but later pared gains, closing down 1.6 per cent at 730p on the London Stock Exchange. This volatility reflects the market’s cautious optimism as the company navigates both growth opportunities and regulatory hurdles in its key markets.