Entain losses narrow after 'biggest World Cup final in history' but gambling taxes continue to sting
Entain's losses narrowed due to a record World Cup, but higher gambling taxes continue to impact the company.Summary
Entain, the owner of Ladbrokes, reported post-tax losses of £11.4 million for the first half of the year, a significant improvement from the previous year's £85.8 million. The company attributed this recovery to the 'major success' of the World Cup, which saw betting activity almost double that of the previous tournament and the final become the 'biggest football betting event in Entain's history.' Net gaming revenue rose 5% to £2.5 billion, supported by 7% growth in online revenue, particularly in the UK and Australia. However, headline earnings were dampened by the impact of increased gambling taxes, which took effect in April. The UK government raised remote gaming duty from 21% to 40% and the levy on online sports betting from 15% to 25%. This tax hike has forced competitors like Evoke to close betting shops, and Entain itself shut 45 stores in Ireland. Despite these challenges, UK and Ireland revenues rose 8%, with 13% online growth offsetting high street closures. Entain's joint venture with BetMGM reported strong growth, driven by the World Cup and NBA playoffs, though the US market faces headwinds. The company plans to reduce its debt and exit its Central and Eastern Europe unit. Analysts note pockets of strength but highlight broader market challenges.
(Source：Mail Online)