Entain profits climb through 2022 as retail rises offset an online drop

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“Another year of strong financial, operational and strategic progress” has been detailed by Entain, as the group looks to build on the past 12 months to “continue to look to the future with confidence”.

Revenue through the period increased 12 per cent to £4.29bn (2021: £3.83bn), a figure that would represent growth of 18 per cent if excluding the group’s 50 per cent share of BetMGM.

Group-wide gross profit through the year climbed 12 per cent to £2.71bn (2021: £2.43bn), while underlying EBITDA increased 13 per cent to £933.2m (2021: £881.7m). Operating costs swelled 18 percentage points during 2022 to £1bn (2021: £952.7m).

Regarding the group’s North American-based efforts, NGR is reported as rising 71 per cent year-on-year to $1.44bn, which is ahead of expectations.  

In markets where the brand operates, Entain has reported a 29 per cent share of igaming and 18 per cent in regions where the vertical is complemented by sports betting.

Looking ahead, revenue is expected to be in the region of $1.8bn-$2bn during the current year, as well as being EBITDA positive through the second half of 2023.

“Having already achieved profitability in several states, we expect BetMGM to be EBITDA positive in the second half of 2023 and a long term target EBITDA margin of 30 per cent-35 per cent” noted Jette Nygaard-Andersen, CEO of Entain.

“In summary, BetMGM remains firmly on track for its path to profitability and has secured its position as a leader in the US sports betting and igaming markets.”

Breaking down the headline revenue figure further still, total online revenue dropped one percentage point to £3bn, with sports remaining flat at £1.44bn and gaming closing with a fractional drop at £1.57bn.

This, said Entain, reflects strong COVID comparison, as well as the absorbed material effects of regulatory changes, particularly in the UK.

On a retail basis, NGR increased 62 per cent to £1.27bn (2021: £791.1m), driven by increased performances across the core markets of the UK and Italy due to, among other things, an improved offer through betting and gaming machines.

The past 12 months also saw Entain enhance its operational output via five acquisitions, which saw the purchases of Avid Gaming in Canada, Klondaika in Latvia, Poland’s Totolotek and BetCity in the Netherlands all secured.

Furthermore, in partnership with EMMA Capital, Entain CEE was formed with an ambition to expand into the CEE region. Croatian online casino and sportsbook operator SuperSport became the first acquisitive interest to this end.

“We made excellent financial, operational and strategic progress during 2022, and took significant strides towards our goal of being the global leader in betting, gaming and interactive entertainment,” commented Nygaard-Andersen.

“I am particularly proud that Entain leads our industry on responsible gaming and we are now the only global operator exclusively in domestically regulated or regulating markets. 

“It is a mark of the strong progress we have made in executing our sustainable growth strategy, and we continue to see a vast array of opportunities around the world as we expand into the $170bn addressable market that we have identified.

“We have a business model that is truly diversified across more than 40 territories, a platform that gives us demonstrable competitive advantages, and a total commitment to providing our ever-broadening customer base with a safe environment in which to enjoy our products and services.

“These factors, combined with the strong underlying momentum across our business, mean that we continue to look to the future with confidence.”