Entain Still Expanding their Business

Entain Still Expanding their Business

All good runs must come to an end at some point. Entain have had 23 quarters of digital revenue growth, but they didn’t make it to 24. Their figures are still highly impressive though, with more expansion on the way.

Entain own such companies as Ladbrokes, Coral, Sportingbet and PartyPoker and now have a forecast of £875m to £885m for their underlying earnings in the 2021 financial year. In the past their estimate had been £850m to £900m.

Their digital revenue for the fourth quarter of 2021 was 6% less than in the corresponding period in 2020. The situation at the end of 2020 was that more people were gambling online due to Covid-19 restrictions causing betting shops and casinos to be closed.

That wasn’t the situation in 2021 and punters were able to go to over 4,000 gambling shops owned by Entain. Between October and December of last year, retail revenue rose 62%. That put them just 10% below pre-pandemic levels.

Over the whole year, retail revenue fell by over 20% but their online business is still going strong. Overall, that led to total net gaming revenues going up by 15%. That was all helped by events such as the European Football Championships, Tokyo Olympics, and the return of Wimbledon and The Open.

Another major boost for Entain is the continued growth of the American gambling industry. An increasing number of US states have legalized sports betting, particularly online. Entain have taken advantage of that situation by partnering with MGM Resorts International, who operate in 19 US states and territories.

Second-largest Sports Betting and Gaming Operator

Such has been their success in the US, Entain have become the second-largest sports betting and gaming operator for the three months to November 2021.

Jette Nygaard-Anderson is the Chief executive of Entain. He said that last year had been “a successful and eventful period” for the company. Another year of “strong, sustainable and diversified growth” had been possible due to their market-leading platform. Entain are due to open sportsbooks in Illinois and Louisiana this year. Another is going to be launched in Ontario, Canada. There will be expansion in other areas such as bingo and racing apps.

He added that “our hugely exciting business in the US’ was a particular highlight. FY21 net gaming revenue is “ahead of expectations” and they have an upgraded outlook for 2022.

Last year saw the company being targeted for takeover by both MGM and DraftKings. However, neither got very far with valuations of the company less than figures set by Entain. Shares in the company continue to do well and over the past year have risen by over a third.