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Investing.com -- Entain plc on Tuesday lifted its full-year profit guidance after posting an 11% rise in first-half underlying EBITDA to £583 million, driven by strong online growth and a 35% revenue surge at U.S. joint venture BetMGM.
Total (EPA:TTEF) group net gaming revenue, including a 50% share of BetMGM, increased 7% to £3.15 billion, or 10% on a constant currency basis. Net gaming revenue excluding the United States rose 3%, with online up 5% and retail down 1%.
In the U.K. and Ireland, online revenue advanced 21% on a constant currency basis, supported by higher volumes and improved player values.
Retail revenue in the region fell 2%. Brazil delivered 21% growth in its newly regulated market, while Italy rose 7% and double-digit online growth was recorded in Georgia, Spain, Canada and Greece. Australia declined 7%, and revenue fell in the Netherlands and Belgium.
BetMGM reported first-half net revenue of $1.35 billion, up 35% on a constant currency basis, with underlying EBITDA of $109 million compared with a loss in the prior year. iGaming revenue grew 28% and online sports revenue rose 61%.
Including BetMGM, total group EBITDA was £625 million, up 32% from the same period a year earlier.
The sports betting and gaming company now expects full-year group EBITDA between £1.1 billion and £1.15 billion, with online EBITDA margins between 25% and 26%.
The group reported a £117 million loss after tax, reflecting £322 million in separately disclosed costs, including a £50 million provision related to AUSTRAC proceedings in Australia.
Adjusted diluted earnings per share rose to 31.3p from 12.3p a year earlier. An interim dividend of 9.8p per share was declared, up 5% from the prior year.
Net debt stood at £3.55 billion at 30 June, with leverage at 3.1 times underlying EBITDA.
During the half, Entain refinanced $3.3 billion in term loans, extending maturities and lowering interest costs by about £10 million a year.