Diversified Entain rides out 2020 retail storms
Entain plc has lauded its ability to maintain a strong trading momentum in Q4 2020, with its diversified portfolio being attributed as a key driver for growth.
Delivering its 20th consecutive quarter of growth, Entain has projected that full-year net gaming revenues (NGR) will be maintained at 27%.
Closing 2020 trading on a high, the FTSE100 group delivered double-digit NGR growth across its online sports betting and gaming units, which were up 59% and 28% respectively.
Mirroring industry trends, Entain’s sports betting units benefitted from a period of strong trading margins, which were up 2.4% on corresponding 2019 results.
A robust online growth maintained the group’s performance, as it continued to trade against severe COVID-19 headwinds, which interrupted its UK retail division – which took a 38% hit. This was compounded by a 57% decline in European retail activity.
Accounting for unprecedented retail disruptions, Entain has anticipated that it will deliver a Q4 NGR growth of 7%, whilst full-year NGR maintained a 1% growth.
Updating investors, the FTSE firm underscored its “geographic and product diversification demonstrating the strength of the Group’s operating model’. Excluding Germany, Entain delivered NGR growth across all markets, highlighting particularly strong performances in Australia, Italy, Brazil, the UK and Georgia.
During 2021, Entain will add Portugal into its geographic mix, having acquired the Bet.pt brand during Q4, thus securing a firm position within the burgeoning Iberian marketplace.
Meanwhile, in the US, despite facing significant COVID hurdles, Entain’s joint venture with MGM Resorts is now live in eleven states, with the company claiming approximately 18% of market share across the US’ regulated market.
Entain continues to trade with caution by observing market-by-market restrictions with regards to new covid lockdown rules during the winter period.
Shay Segev, Entain’s outgoing CEO, commented: “In an exceptionally challenging year, our strong performance has been driven by a business model that is highly diversified across a wide range of products, brands, territories and channels.
“Q4 has been another successful period for us, and we are particularly pleased with the momentum that we are seeing in the US. BetMGM continues to go from strength to strength and is now live in 11 states, plus Michigan will be launching online tomorrow.
“As ever, we remain deeply aware of our responsibility to provide our customers with the safest possible experience while using our products, and to that end our new technology-based Advanced Responsibility and Care programme is heralding a new era in player protection.
“While the short-term outlook remains uncertain as a result of the ongoing impacts of COVID-19, we have entered 2021 with good momentum and remain as confident as ever in Entain’s longer-term prospects.”
Source: SBC News
