Entain PLC (LSE:ENT) reported profits at the top end of expectations as growth in its retail operations offset a slowdown in online earnings.
The owner of Ladbrokes and Coral said underlying earnings (EBITDA) rose 13% to £993mln in the past calendar year, from £881.7mln a year before, at the top end of upgraded guidance given in February.
Online EBITDA fell 8% to £828mln, reflecting strong comparisons during lockdowns and regulatory changes in major markets, but the picture was brighter in betting shops, where underlying EBITDA for the retail business jumped 319% to £280mln.
With the dividend resuming this past year after being paused during the pandemic, a second interim dividend of 8.5p per share was paid, taking the payout for the year to 17.0p.
Net gaming revenue (NGR) rose 12% to £4.35bn, as revealed in January, with retail NGR up 66% but online NGR slipping 1%.
BetMGM, the US joint venture, continued to perform strongly with NGR up 71% to US$1.44bn, ahead of expectations, and is on track to be EBITDA positive in the second half of the year, the company said.
Entain said 2023 net revenue at the US joint venture is expected to rise to a range of US$1.8bn to US$2bn.
Looking ahead, the FTSE 100-listed group said despite “some regulatory headwinds, we remain excited by the opportunities ahead“.
“We have started 2023 with positive underlying momentum and we remain confident in our long-term strategic prospects.”