Entain PLC on Thursday said it swung to an annual loss on higher expenses but saw revenue surge on a strong performance from its BetMGM business.
The betting and gambling firm swung to a pretax loss of £842.6 million in 2023 from a pretax profit of £102.9 million the year before, as administrative costs grew 60% to £3.51 billion from £2.19 billion the previous year.
However, Entain saw its revenue increase by 11% to £4.78 billion from £4.30 billion in 2022, crediting ‘good growth’ in BetMGM, which saw its net gaming revenue jump by 36% to $1.96 billion. This is at the upper-end of its $1.8 to $2.0 billion guidance range.
BetMGM is a sports betting and iGaming operator across North America, jointly owned by Entain and MGM Resorts International.
Underlying earnings before interest, tax, depreciation and amortisation edged up 1.0% to £1.01 billion from £993.2 million in 2022.
Entain declared a total dividend of 17.8 pence per share, up 4.7% from 17.0 pence the year prior.
Looking ahead, Entain said it is currently trading in line with expectations, but warned that its earnings before interest, tax, depreciation and amortisation in 2024 could reduce by around £40 million.
Commenting on Entain results, Chair Barry Gibson said: ‘2023 was a period of necessary, but ultimately positive, transition for Entain. We have significantly strengthened the quality of our revenue base, enhanced our board, and delivered a resolution to a critical, historic, regulatory issue.
‘As our transformation continues, the newly formed capital allocation committee has commenced a review of Entain’s markets, brands and verticals. The objectives of the review are to help focus the organization, improve competitive positions and maximize shareholder value,’ he added.
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