In the dynamic and competitive landscape of the gambling industry, analyzing financial performance and operational metrics provides crucial insights into company performance and market positioning. Prepared by SlotsUp, a group of gambling experts, this report offers a comprehensive analysis of the key financial and operational metrics of the four major players in the gambling sector for Q2 2024: Entain Group, Betsson AB, Kindred Group, and Flutter Entertainment.
By comparing these industry leaders, the research highlights how each company is navigating the complexities of market dynamics, regulatory environments, and strategic goals. This comprehensive overview not only sheds light on current performance but also provides valuable context for understanding future growth prospects and industry trends.
Entain Group
Entain plc, a leading global sports betting and gaming group, has released its interim results for the six-month period ending 30 June 2024. The report highlights a period of notable performance improvements and strategic advancements, reflecting the company’s ongoing efforts to enhance operational efficiency and drive growth. With a focus on both online and international markets, Entain demonstrates resilience and adaptability in a competitive landscape. The results indicate a solid foundation for continued success and offer an updated outlook for the remainder of the fiscal year ( Source: 2024 Interim Results.)
Overall Performance:
- Group Net Gaming Revenue (NGR) increased by 6% (+8% at constant currency) for H1 2024.
- Online NGR (excluding the US) grew by 9% (+11% at constant currency).
Financial Highlights:
- Group EBITDA reached £524 million, up 5% compared to the previous year.
- Net Loss amounted to £47 million.
- Proposed interim dividend is 9.3p per share, a 5% increase year-on-year.
- Net Debt stood at £3.329 billion, with available cash exceeding £1.3 billion.
Key Points:
- Project Romer: Target for net savings increased to £100 million by 2026 (from £70 million).
- BetMGM: Demonstrated sequential revenue growth and stabilized market share at 13%.
- Online NGR in Brazil rose by 28% at constant currency.
- UK & Ireland Market: NGR down by 6% at constant currency.
- International Market: NGR up by 10% at constant currency, with strong performance in Croatia (+17% YoY).
FY24 Outlook:
- Expected Online NGR Growth: Low single-digit positive growth.
- Expected EBITDA: In the range of £1,040 million to £1,090 million.
Expert Quote: Stella David, Interim CEO and Chair Designate, commented:
“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.”
Leadership Changes:
- Gavin Isaacs will become the new CEO on 2 September 2024.
- Stella David will succeed Barry Gibson as Chair on 30 September 2024.
Capital and Strategy:
- Capital Allocation Committee is reviewing strategic alternatives for Crystalbet.
- Ongoing evaluation of strategic progress and capital commitments to maximize shareholder value.
Conclusion
In summary, Entain plc’s interim results for H1 2024 underscore significant progress in operational execution and financial performance. The group has achieved a 6% increase in total NGR and has shown robust growth in online segments, particularly in emerging markets like Brazil. Despite facing challenges in the UK & Ireland, Entain’s strategic initiatives, such as Project Romer and investments in BetMGM, are yielding positive outcomes. The upgrade in FY24 guidance reflects confidence in the company’s trajectory, bolstered by upcoming leadership changes and a clear focus on value creation. As Entain continues to build on its solid performance, stakeholders can anticipate further advancements and strategic developments in the second half of the year.
Betsson AB
Betsson AB achieved strong financial and operational performance in the first half of 2024, with notable increases in revenue, profitability, and customer engagement.( Source: Betsson AB (publ) interim report January – June 2024)
Key Financial Metrics for Q2 2024:
- Revenue: EUR 519.7 million (+13% YoY)
- EBITDA: EUR 149.2 million (+22% YoY)
- EBIT: EUR 122.0 million (+25% YoY)
- Net Income: EUR 87.2 million (+4.5% YoY)
- Operating Cash Flow: EUR 125.8 million
Key Financial Metrics for H1 2024:
- Revenue: EUR 271.5 million (+15% YoY)
- EBITDA: EUR 77.6 million (+15% YoY)
- EBIT: EUR 64.1 million (+18% YoY)
- Net Income: EUR 44.4 million (-5.4% YoY)
- Active Customers: 1.4 million (+25%)
CEO Commentary:
Pontus Lindwall highlighted record Q2 performance with a 15% revenue increase and a 18% rise in operating income. He noted strong organic growth driven by B2C operations and major sports events. Active customers grew by 25%, and revenue from regulated markets rose significantly.
Significant Events:
- Licenses: New licenses in Peru for Betsson and Betsafe.
- Share Reclassification: Increased total shares and votes.
- ESG Rating: Upgraded to AAA by MSCI.
Outlook:
Q3 2024 revenue is up 20.5% year-to-date compared to Q3 2023. Adjusted for currency and acquisitions, the increase is 47.9%.
Strategic Direction:
Focus on profitable expansion, geographic diversification, and B2B development, supported by advancements in AI and responsible gambling tools.
Conclusion:
Betsson AB’s Q2 and H1 2024 results showcase strong growth across key financial metrics, successful strategic initiatives, and robust customer engagement, positioning the company well for future success.
Kindred Group
Kindred Group’s interim report for January – June 2024 highlights a period of strong financial performance and strategic adjustments. The company demonstrated significant revenue and profitability growth while navigating market challenges and focusing on core operations. (Source: INTERIM REPORT JANUARY – JUNE 2024 )
Key Highlights
- Revenue Growth:
- Q2 2024: £327.6 million (+7% YoY)
- H1 2024: £635.3 million (+4% YoY)
- Significant uplift driven by the UEFA Euro 2024 tournament.
- Profitability:
- EBITDA: £73.6 million (+32% YoY) for Q2; £132.9 million (+26% YoY) for H1.
- Profit Before Tax: £55.6 million for Q2; £95.4 million for H1.
- Profit After Tax: £44.5 million (+60% YoY) for Q2; £75.9 million (+42% YoY) for H1.
- Free Cash Flow: £41.6 million for Q2; £65.3 million for H1.
- Customer Metrics:
- Active Customers: 1,749,611 (+12% YoY).
- Regional Performance:
- Western Europe: £208.4 million (+16% YoY), with strong growth in the Netherlands (+17%), France (+41%), and Belgium (+12%).
- Nordics: £71.6 million (stable YoY), with Sweden down 3% and Denmark up 14%.
- Central, Eastern, and Southern Europe (CES): £30.2 million (-9% YoY), with Romania growing 14% but declines in Italy (-51%) and Estonia (-21%).
- Other Regions: £7.0 million (-49% YoY), with notable drops in Australia (-9%) and North America (-73%).
- Product Segments:
- Sports Betting: £18% increase with a margin of 12.1%, boosted by the Euros tournament.
- Casino & Games: 2% decrease in revenue, but a 6% increase in active customers.
- Poker & Other Products: 7% revenue growth, driven mainly by France.
- Other Revenue (B2B): £10.4 million (+16% YoY), including a 10% increase from Relax Gaming.
- Cost Management:
- Gross Profit: £185.1 million for Q2 (+7% YoY); £357.7 million for H1 (+4% YoY).
- Marketing Costs: £52.1 million for Q2, reflecting reduced investment in North America and improved efficiency.
Expert Quote
Nils Andén, CEO of Kindred Group, remarked: “We continue to demonstrate our resilience and strategic execution, which is reflected in our strong performance across our market portfolio. The vast majority of our top markets have grown year-on-year, which is very encouraging.”
Conclusion
Kindred Group’s interim report for January – June 2024 underscores a period of robust financial performance and strategic realignment. Revenue growth was driven by a successful UEFA Euro 2024, with strong contributions from Western Europe. While the Nordic region showed mixed results, the CES region faced declines, and other regions experienced significant drops. Sports betting achieved record margins, and operational efficiency helped manage costs effectively. Overall, Kindred remains focused on core markets, with a positive outlook for sustained growth despite recent challenges.
Flutter Entertainment
On August 13, 2024, Flutter Entertainment, a leading global operator in online sports betting and iGaming, released its financial results for the second quarter of 2024. The report highlights a significant outperformance relative to forecasts and an upward revision of revenue and adjusted EBITDA guidance for the full year 2024. Key drivers of this success include impressive growth in average monthly players (AMP) and a substantial increase in revenue. The company continued to strengthen its position in the U.S. and international markets, particularly in sports betting and online gaming, reflecting positively in its financial performance (Source: Flutter Entertainment Reports Second Quarter 2024 Financial Results)
Key Financial Highlights
- Average Monthly Players (AMPs): Increased by 17% to 14,344,000 from 12,222,000 year-over-year.
- Revenue: Rose by 20% to $3.611 billion from $3.001 billion.
- Net Income: Surged by 364% to $297 million from $64 million.
- Net Income Margin: Improved to 8.2% from 2.1%.
- Adjusted EBITDA: Up 17% to $738 million from $633 million.
- Adjusted EBITDA Margin: Slightly decreased to 20.4% from 21.1%.
- Diluted EPS: Increased by 290% to $1.45 from $0.37.
- Adjusted EPS: Rose by 56% to $2.61 from $1.67.
- Net Cash Provided by Operating Activities: Increased to $323 million from $41 million.
- Free Cash Flow: Improved to $171 million from -$95 million.
- Leverage Ratio: Decreased to 2.6x from 3.1x.
Operational Highlights
- US Market:
- Achieved significant growth with AMPs increasing by 27% and revenue up by 39%.
- FanDuel led the market with a 38% share of online gross gaming revenue, including 47% in sportsbook GGR.
- Strong performance in new states like North Carolina, with a 59% market share.
- Completed migration of FanDuel Casino to proprietary technology, enhancing customer experience.
- International Market (excluding the US):
- AMPs grew by 15% and revenue by 10%.
- The UKI region saw a 7% increase in AMPs, boosted by the European Football Championships.
- Sisal in Italy achieved record market share and AMPs grew by 25%.
- Australian market trends aligned with expectations, with a focus on key sporting events.
Full Year 2024 Guidance
- US Market:
- Revenue expected between $6.05 billion and $6.35 billion, and Adjusted EBITDA between $680 million and $800 million.
- Forecast includes a $50 million gross impact from Illinois gaming tax increases, with initial mitigation of $10 million.
- Group Ex-US:
- Revenue projected between $7.85 billion and $8.15 billion, with Adjusted EBITDA between $1.69 billion and $1.85 billion.
- Includes benefits from the Euros and positive sports results.
CEO Peter Jackson’s Comments
Peter Jackson, CEO, highlighted Flutter’s strong quarterly performance, driven by their competitive edge and global scale. He emphasized the impressive growth in the US market, particularly with FanDuel, and noted the positive impacts from European football and other international markets. Jackson also mentioned the strategic move of Flutter’s primary listing to NYSE and operational headquarters to New York as a natural evolution of the business.
Conference Call Details
Flutter will host a conference call today at 4:30 p.m. ET (9:30 p.m. BST) to discuss the results. The call can be accessed via webcast or telephone, with a replay available afterward.
For further details, visit Flutter Investors.
Forward-Looking Statements
The press release includes forward-looking statements subject to various risks and uncertainties that may cause actual results to differ. For more information on risk factors, refer to Flutter’s Annual Report on Form 10-K and other SEC filings.
Conclusion
The second quarter results for 2024 underscore Flutter Entertainment’s successful execution of its strategic objectives. The company demonstrated substantial revenue and profit growth, allowing for an upward revision of full-year forecasts. Notable successes include the continued dominance of FanDuel in the U.S. market and significant achievements across international markets, including the UK and Italy. Despite some challenges, such as tax changes in Illinois, Flutter continues to show strong growth and confidence in its future prospects, as evidenced by its expansion plans and ongoing investments in key markets.
Conclusion:
Here’s a concise summary of the Q2 and H1 2024 results for Betsson AB, Kindred Group, Flutter Entertainment, and Entain plc:
Flutter Entertainment stands out with a 20% increase in revenue and a 364% surge in net income. Their strong performance in the U.S. market and international expansion led to revised positive forecasts for 2024. Notably, Flutter’s average monthly players grew by 17%, reflecting robust engagement and market dominance.
Betsson AB also performed well, showing a 13% revenue growth and a 22% increase in EBITDA. They achieved significant gains in regulated markets and grew their active customer base by 25%, indicating strong market penetration and operational success.
Kindred Group reported a 7% rise in revenue and a 32% increase in EBITDA, driven by strong results in Western Europe. Their active customer base grew by 12%, despite challenges in Central and Eastern Europe and other regions. This highlights their resilience and effective market strategies.
Entain plc experienced a 6% increase in revenue and a 5% rise in EBITDA but faced a £47 million net loss. While making progress in emerging markets like Brazil, they continue to address difficulties in the UK and Ireland. Their strategic initiatives and focus on operational efficiency are crucial for improving future performance.
In summary, Flutter Entertainment shows the strongest overall growth, followed by Betsson AB and Kindred Group. Entain plc faces challenges but is making strides in specific markets, reflecting a mixed but forward-looking performance across the industry.
