* CEO says World Cup boost has spilled over into current
quarter
* First-time bettors for World Cup doubled versus 2022
version
* H1 profit of £479 million versus £455 million estimate
(Adds shares in paragraph 5, CEO comments in 3 & 8, details and
background throughout)
By Yamini Kalia
Aug 13 (Reuters) - Ladbrokes owner Entain ( GMVHF ) beat
first-half profit expectations on Thursday as group-wide cost
cuts and a surge in player engagement during the men's Soccer
World Cup helped the bookmaker absorb the impact of higher
British gambling taxes.
The scale of Entain's ( GMVHF ) revenue stream across the U.S. and
Britain helped it mitigate the impact of the taxes, which have
put pressure on smaller rivals such as Evoke, while the
sporting spectacle also lifted consumer spending and morale.
CEO Stella David told Reuters that "massive engagement" from
the World Cup has spilled over into Entain's ( GMVHF ) current quarter,
with first-time bettors doubling from the 2022 version.
Group net gaming revenue rose 5% on a constant currency
basis in the first half, with online net gaming revenue up 7%
and retail up 1% on the same basis.
Entain ( GMVHF ) shares were up marginally at 0830 GMT, having risen
as much as 3% earlier.
BETMGM STRATEGY
Entain ( GMVHF ) operates BetMGM in the U.S. along with MGM Resorts ( MGM )
, and that business has been a highly lucrative one for
the British group.
Analysts believe BetMGM could be a good independent asset
for Entain ( GMVHF ), thanks to its strong U.S. market position and
standalone technology infrastructure.
Entain's ( GMVHF ) David, who has been vocal about being open to a
change in ownership structure for the business, said the company
has been separating BetMGM's technology and infrastructure from
MGM Resorts ( MGM ) so that Entain ( GMVHF ) could run the business independently
if needed, though there is no plan for a transaction yet.
Entain's ( GMVHF ) first-half underlying core profit fell 2% to £479
million ($645.6 million), but still topped company-compiled
estimates of £455 million.
It began a phased exit from its Central and Eastern European
business in late June, with plans to also cut 500 jobs, as it
reduces its cost and debt burden, which stood at £3.6 billion at
the end of June.
($1 = 0.7420 pounds)