Ladbrokes owner eyes Euro 2020 profit boost after football betting surge

After a year marred by cancelled sporting events and closed retail betting shops, an increase in online gambling during the pandemic-induced lockdowns has helped bookmakers. File picture

Ladbrokes owner Entain has boosted its 2021 profit view and reported a jump in first-half net gaming revenue, with record bets placed on Euro 2020 following the resumption of sporting events.

Entain expects core earnings of £850m-£900m (€993m-€1.05bn) ahead of current market consensus, and better than the £843.1m reported in 2020 and £761.4m in 2019.

After a year marred by cancelled sporting events and closed retail betting shops, an increase in online gambling during the pandemic-induced lockdowns has helped bookmakers.

Entain reported its 22nd straight quarter of double-digit growth in online net gaming revenue, up 22% in the three months to June, when Euro 2020 kickstarted after being called off last year due to the health crisis.

The company said the tournament was its biggest ever sports betting event, saying it took more bets than it did for the World Cup in 2018.

England's semi-final victory

Hargreaves analyst Sophie Lund-Yates said England's semi-final victory at the Euros could contribute "to the news that underlying cash profits are expected to beat consensus at the full year".

Entain also said it was doubling investment in its game development studios as it steps up its focus on online betting.

It recently bought European groups Bet.pt and Enlabs and fended off a takeover attempt from MGM.

Entain said volumes at its retail shops since reopening were only a tenth lower than before the Covid crisis.

But the easing of lockdowns in Britain has hit some online earnings, with 888 flagging a 20% drop in average daily revenue since May.

• Reuters