They say a prophet has no honour in their own land but if there’s one unemployed former top level CEO smiling today then it’s got to be Jette Nygaard-Andersen, who was unceremoniously dumped by troubled U.K. gambling Omnichannel Entain last December.
For those vital–and at the time hyper controversial–continental European acquisitions, most notably the oft-criticised purchase of dominant Polish playmaker STS for £750 million (US$950.36m) in June last year, which signalled the unravelling of Nygaard-Andersen’s authority, have come hard-charging to the fiscal rescue of Entain in H1 – just when they needed it most.
Reporting a six percent year-on-year rise in Net Gaming Revenue (NGR) to £2.6 billion (US$3.29bn) for the first financial half, ending June 30, the surging relief has been allocated to Entain’s booming international and Central and Eastern Europe (CEE) businesses, which have trumped the group’s faltering performance in its home market of the U.K. and Ireland.
Faced with a legacy disaster–not of her own making–over historic money-laundering charges and other misdemeanours in Turkey, when Entain was operating under the GVC moniker, Nygaard-Andersen tried to rescue the wounded British giant–home of storied brands Ladbrokes Coral, bwin, PartyPoker and Sportingbet–by abandoning the grey markets and going super-clean and legit into Regulated Markets, notably the CEE.
Vindication
Her novel approach, which did, admittedly, see FTSE 100-listed Entain discount the Vatican City and Antarctica as potential markets, was savaged by activist Entain investors, led by Ricky Sandler of New York City’s Eminence Capital (pictured left), which controls some five percent of the company.
His criticism, coming so soon after Entain’s massive £585 million (US$741.28m) fine by British authorities for the Turkey imbroglio, accelerated Nygaard-Andersen’s slide from grace and led to her much-publicised defenestration only days before Christmas.
Now it appears that Nygaard-Andersen’s ousting was not only precipitous but, perhaps, premature.
Entain’s digital performance was up nine percent to £1.79 billion (US$2.28bn), compared to H1 2023.
In the U.K. and Ireland overall NGR dropped six percent to £1 billion (US$1.26bn), gaming NGR sliding seven percent to £611.2 million (US$774.56m), sports betting down by five percent to £393.5 million (US$498.67m).
Boost
Meantime, in a major boost, and vindication of the departed Nygaard-Andersen, Entain’s newly-boosted CEE venture paid off big time, with revenue leaping by an astonishing 126 percent to £240.9 million (US$305.29m) in H1, compared to the first half of 2023.
Crucial to the take were Nygaard-Andersen’s aforementioned acquisition of STS Poland and buy of Croatia’s SuperSport in August, 2022.
Entain’s key CEE sports betting vertical more than doubled its revenue to £181.5 million. Online was up by 130 percent. And Retail upped 107 percent.
Across its international division, NGR rose by seven percent, year-on-year, to £1.29 billion (US$1.63bn).
Progress
Brazil, now moving towards full regulation, is looking particularly promising with 28 percent growth over H1.
Entain’s BetMGM U.S. sportsbook and iGaming joint-venture with MGM Resorts International–which “has a pipeline of exciting opportunities ahead, reinforcing our conviction in [its] strong future”–has already filed its H1 under separate measure.
Compared to a loss of £506.2 million (US$641.43m) posted last H1, naturally impacted by the swingeing Turkey money-laundering fine, Entain recorded a net loss of £46.9 million (US$59.42m) during the financial half just gone.
Focussed
“Whilst there is more work to do, we are pleased with the progress so far and look forward to building further on these solid foundations in H2 and beyond,” said Entain Interim CEO and soon-to-be Chair Stella David, who will hand over the reins to newly-appointed CEO Gavin Isaacs in September (pictured right).
In keeping with its more positive first half, Entain now expects full year, single-digit, growth and 2024 EBITDA of between £1.04 billion to £1.09 billion (US$1.31bn-US$1.26bn).
“Our focused execution underpins the group’s performance so far this year, and we are excited by the opportunities ahead,” affirmed David.
A performance, ironically, that can be laid at the feet of the deposed Jette Nygaard-Andersen.
So let’s afford the Dane a wry, if belated, smile of vindication on whatever sun-lounger she’s currently commandeered.
