Entain Plc sees its business units return to ‘organic growth’; however, the FTSE100 group’s yearly profits have been wiped out by bottom-line impairments, write-downs, and restructuring costs totalling £860m.

For a second consecutive year, Entain has declared a multi-million pound loss (after tax) for FY2024, totalling £460m. The figure further compounds the FY2023 loss of £900m, while group accounts further detailed separate impairment charges totalling £476m.

These troubling figures were attributed to items related to regulatory adjustments for the launch in Brazil and adjustments to stricter compliance in the Netherlands and Belgium.

Units and items that booked multi-million impairments included the TAB NZ contract of £142m, BetCity.NL for £113m, and STS Poland for £75m.

A further £286m was booked on the ‘amortisation of assets’, and the write-down of intangible assets related to acquired brands, technologies, and customer bases of BetCity.nl, STS Poland, Ladbrokes Coral, and SuperSport Croatia.

The final big-ticket cost was attributed to £50m spent on ‘restructuring costs’, reflecting an upgrade of US technologies and wagering systems, executed by ‘Project Romer’.

Due to technology expansion costs in the US, Entain’s share of losses on the BetMGM joint venture doubled to £109m. However, leadership cited that the BetMGM JV has gained a platform for profitability in 2025.

Stella David: Entain Plc

Stella David, Entain Group CEO, said: “While 2024 was a year of transformation and strong operational progress, we also faced necessary adjustments in response to regulatory changes and market conditions.

“We have taken a disciplined approach in reassessing the value of assets in markets where conditions have changed, ensuring we remain agile and focused on long-term value creation. Despite these adjustments, our core business is delivering solid growth, and we remain confident in our ability to generate significant cash flow and shareholder value in the years ahead.”

Returning to headline results, Entain deemed FY2024 as a return to organic growth, in which corporate revenues stood at £5.16bn, up 7% on FY2023 comparatives of £4.8bn.

Year trading saw Group EBITDA amount to £1.08bn, reflecting an online contribution of £941m and £261m generated by retail units. Of significance to headline results, Entain achieved its objective of returning to growth in the UK & Ireland from H2 onwards.

Its biggest unit delivered an improved Online Net Gaming Revenue (NGR) of £985m, up 2% on FY2023 results of £964m, marked by significant product improvements, helping improve customer ROI.

Meanwhile, despite economic challenges impacting the UK high street, the Ladbrokes Coral retail unit delivered an unchanged NGR of £1.06bn.

Despite improved revenue results, underlying UK and Ireland EBITDA declined by 7% to £437m (FY2023: £470m), reflecting higher bottom-line operating costs, including increased marketing and inflation.

On UK results, David remarked: “Returning to growth in Entain’s largest market was a cornerstone of the Group’s overall performance and strategic success.

“The turnaround of our UK & Ireland Online growth was critical to the Group’s performance during 2024 and demonstrates the success of our decisive actions. UK & Ireland Online NGR was up +2% versus the prior year and, importantly, returned to year-on-year growth sooner than anticipated.”

A bright outlook was provided by Entain’s International Unit, which achieved an NGR contribution of £2.64bn, up 6% on 2023 comparatives of £2.49bn.

The International Unit served as the biggest EBITDA contributor to Entain, generating £594m.

A short notice was made on the launch of Brazil’s betting market, which delivered exceptional results, with total NGR up 41% and customer actives increasing by 42%.

David concluded: “Our international markets continue to demonstrate strong momentum, with Brazil and Georgia leading the way in growth. While regulatory changes in Belgium and the Netherlands required impairments, our core markets remain well-positioned for long-term growth. We have taken decisive actions to optimise performance and remain confident in our ability to drive shareholder value in these key regions.”

Entain moves into 2025, the Group remains confident in delivering mid-single-digit growth in Online NGR, in line with market expectations. “expectations for FY25 and is focused on generating over £0.5bn in annual adjusted cash flow in the medium term, ensuring strong returns for shareholders while continuing to invest in innovation and global expansion.” 

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