Entain, a leading global gaming and entertainment company, has reported impressive financial results for Q4 2022 and the full fiscal year 2022. The company experienced significant growth in online net gaming revenue (NGR) following a successful 2022 World Cup in Qatar. Despite some weather-related disruptions to sporting events, Entain achieved record levels of active customers, driven by strong growth in gaming and betting terminals.
Record Q4 Online NGR and Customer Growth:
Entain’s Q4 online NGR soared by 12% compared to the previous year, boosted by the excitement and popularity of the 2022 World Cup. The successful event in Qatar contributed to increased customer engagement and betting activity. However, these positive results were partially offset by weather disruptions that affected certain sporting fixtures. Additionally, Entain witnessed a remarkable 14% year-on-year growth in active customers, indicating a growing customer base and their strong trust in the company’s offerings.
Retail Performance and FY22 Results:
In Q4 2022, Entain’s retail sector experienced a remarkable climb of 10%. This growth was primarily fueled by the increasing popularity of gaming and betting terminals, demonstrating the company’s ability to meet customer demands in physical locations. Looking at the full fiscal year 2022, Entain reported a 12% year-on-year increase in NGR. However, the online segment experienced a slight decline of 1% due to challenging Covid-19 comparators and regulatory changes, especially in the UK and Germany. On the other hand, retail performance skyrocketed by an impressive 66%, surpassing pre-Covid levels. This surge was attributed to higher volumes, market share gains, and the expansion of the customer base.
Outlook and EBITDA Expectations:
Entain’s exceptional performance in FY22 is expected to translate into a robust EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) range of £985m ($1.2m) to £995m, representing a remarkable 12% year-on-year growth. This projection exceeds initial expectations, highlighting the company’s strong financial position and effective management strategies.
Strategic Acquisitions and Geographic Expansion:
Entain accomplished significant milestones through strategic acquisitions during the reported period. The acquisition of SuperSport in Croatia led to the establishment of Entain CEE, enabling geographic diversification and driving further growth. Additionally, the acquisition of BetCity provided access to the fast-growing and attractive Netherlands market, positioning Entain for success in this region.
BetMGM Success and Expansion:
Entain highlighted the ongoing success of BetMGM, its joint venture with MGM Resorts International, in its operational highlights. BetMGM expanded its operations by launching in Maryland, Ohio, and Massachusetts, solidifying its presence in the United States’ growing online gambling market. This expansion strategy strengthens Entain’s position in one of the world’s largest gaming markets.
CEO’s Perspective and Growth Strategy:
Entain CEO, Jette Nygaard-Andersen, expressed satisfaction with the company’s financial, operational, and strategic progress in 2022. The company’s growth has been driven by sustainable and diversified revenue expansion, global footprint enlargement, customer diversification, and expansion into new entertainment areas. Entain’s commitment to providing a safe environment for customers has resulted in a record number of active customers in Q4. With positive momentum at the beginning of 2023, Entain remains confident in its ability to continue executing its growth and sustainability strategy in the upcoming year.
Entain’s strong financial performance in Q4 2022 and FY22 reflects the company’s successful execution of growth strategies, including leveraging major sporting events, expanding geographically through acquisitions, and capitalizing on the popularity of BetMGM in the United States. The record-breaking online NGR and substantial growth in active customers showcase Entain’s ability to adapt to changing market dynamics and meet customer demands. As the company looks ahead to 2023, it is well-positioned to sustain its growth trajectory and continue delivering value to its stakeholders.