Entain – Return of in-person betting fuels revamped dividend policy


Entain PLC (LON:ENT) revenue increased 19% to £2.1bn in the half, with an 18% increase in net gaming revenue. This was driven by a strong rebound in retail performance after the previous year’s shutdowns, which more than offset a decline in online commerce.

Operating costs jumped 31% as retail reopened and new acquisitions fueled the cost base. Nevertheless, underlying cash profit (EBITDA) increased by 17% to £471.0 million.

Get the complete Henry Singleton series in PDF

Get the complete 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email it to co-workers

Q2 2022 Hedge Fund Letters, Talks & More

Qualivian Investment Partners July 2022 Performance Update

stock performance 1651757664Qualivian Investment Partners Performance Update for the Month Ended July 31, 2022. Q2 2022 Hedge Fund Letters, Conferences and Others Dear Friends of the Fund, Please find our July 2022 Performance Report below for your exam. Qualivian reached its four-year performance record in December 2021. We are actively evaluating investment proposals. From November Read more

A new dividend policy is being introduced, starting with a total dividend of £100m to be paid this financial year. This will be split in the evening between the halves, so an interim dividend of 8.5p was announced today.

The group remains on track to generate between £925m and £975m in cash profit this year.

Shares rose 3.9% after the announcement.

Entain’s Earnings

Matt Britzman, equity analyst at Hargreaves Lansdown

“The resurgence of in-person betting continued in the first half as a cost of living crisis and wider economic uncertainty do not appear to deter players from embarking on a rush to in-person gaming. The flip side of this trend is a decline in online gaming, although activity is stabilizing well ahead of pre-pandemic levels.

The positive performance and rebound in retail trade paved the way for a renewed and revitalized dividend policy. Starting at £100m in the current year, split between the first and second half, that should go up from here. Good news for investors, although it will put additional pressure on the cash already clawed back into BetMGM and the acquisition-driven growth strategy.

Speaking of BetMGM, the group’s joint venture over the pond, the performance remains solid. With profits expected to start flowing sometime next year and BetMGM management recently increased its forecast addressable market to around $37 billion, there’s a big slice of the pie to be had.

About Hargreaves Lansdown

Over 1.7m clients trust us with £132.3bn (as of April 30, 2022), making us the UK’s leading platform for private investors. Over 98% of customer activity is through our digital channels and over 600,000 access our mobile app each month.