Entain projects continued momentum following 2021 multi-market growth
Following a strong trading year for 2021 which saw growth across multiple markets, Entain has projected continued momentum in 2022, despite a decline in retail income and an increase in debt.
The FTSE100 international gambling group revealed this morning that its group revenue for 2021 stood at £3.9 billion, an 8% increase on the 2020 figure of £3.6 billion, whilst EBITDA also increased by 5% to £881.7 million (2020: £843 million).
Of Entain’s business divisions, the online segment accounted for over 78.8% of its total full year net gaming revenue, having grown by 20% to reach revenue of £14.2 billion (£11.8bn), whilst retail accounted for 20.3% and other verticals 0.8%.
For online operations, Italy and Brazil were the leading markets, where Entain is active via its Eurobet, bwin and Gioco Digitale brands in the former. In the latter, Sportingbet was able to record NGR growth of 111%.
Italian market growth, meanwhile, saw Entain’s NGR in the country increase by 31%, driven by new NBA game football, pre-match football player markets, and the introduction of in-house content across bwin and Gioco Digitale.
However, the increase in online wagering has been coupled with a 10% decline in retail to £2.3 billion (£2.6bn), with the UK and Belgium the two leading markets – the relaunch of Ladbrokes in the latter was cited in particular – followed by Italy and Ireland.
“The impact of COVID restrictions and associated disruptions impacted all our retail operations throughout 2021, but to varying degrees,” said Jette Nygaard-Andersen, Entain CEO.
“However, we were encouraged by the resilience of our Retail operations, as customers demonstrated that they enjoy the in-store experience with volumes growing quickly as restrictions eased.”
Additionally, despite online gains, Entain’s net debt rose by 14% from £1.8 billion in 2020 to £2.1 billion last year, something which could be attributed to a range of major acquisitions conducted in 2021.
The firm notably acquired esports wagering platform Unikrn in late 2021, whilst earlier takeovers saw the company buyout Swedish operator Enlabs for €370 million, as well as Portuguese betting incumbent bet.pt.
Although these acquisitions will have contributed to increased operating costs, Entain maintains that the new subsidiary has played a key role in its 2021 international expansion.
Enlabs is a key player in the baltics via the Optibet brand, enabling Entain to secure a foothold in jurisdictions such as Latvia and Estonia, whilst the takeover of bet.pt has strengthened the its standing in the Iberian Peninsula, where it is already active via bwin.
Addressing German market conditions in the aftermath of the Fourth Interstate Gambling Treaty (GlüNeuRStv), Nygaard-Andersen observed that although “challenges remain”, the firm has been able to differentiate bwin’s offering in the country “with a number of products and enhancements”.
Moving forward, Entain expects the growth rate for its current markets to continue at over 8% to reach a total value of around $60 billion, whilst also pointing to progress in the US market, where the BetMGM joint-venture saw increased revenues of 378% to $850 million (2020: $178m).
“We continue to look for further opportunities to enter new, growing and regulated, or regulating markets, where we can drive greater value for shareholders,” Nygaard-Andersen remarked.
Source: SBC News
