Entain Sheds Light on TAB NZ Partnership and 365scores Acquisition Opportunities
Global sports betting, gaming, and interactive entertainment group, Entain plc, has recently shared more details about its strategic partnership with TAB New Zealand (TAB NZ), and the latest acquisition of 365scores.
Senior members of Entain’s management team leading these opportunities have made presentations available via the TABNZ-365scores update. Combined, these initiatives are predicted to yield an EBITDA of approximately £15-20m in FY24 and approximately £50m in FY25 for the Group, translating to a FY25 EBITDA multiple of 5x for both transactions.
TAB NZ Partnership
Dean Shannon, CEO of Entain Australia and New Zealand, outlined the key points of the TAB NZ partnership in his presentation:
- A 25-year partnership was initiated on June 1, 2023, offering unrestricted access to the regulated New Zealand market.
- The partnership presents a significant opportunity to enhance offerings and improve engagement for New Zealand customers, thereby growing the online sports betting market.
- The current New Zealand betting market is valued at approximately NZ$600 million and is expected to grow by around 35% over the next five years.
- An initial consideration of NZ$160 million is expected, with a further NZ$100 million payable, contingent on the implementation of legislative geo-blocking.
- Profits are to be split evenly, with the partnership supporting the New Zealand racing and sports industries through a minimum commitment of NZ$150 million annually in the first five years.
- Entain Australia’s leading approach to player safety is set to benefit TAB NZ and New Zealand customers.
Sameer Deen, Chief Strategy Officer and President New Ventures, pointed out the following key aspects of the 365scores acquisition in his presentation:
- 365scores is a leading global sports app with a highly engaged audience of sports fans.
- The app ranks among the top five sports apps globally and is among the top three sports apps across Latin America, boasting approximately 18 million monthly active customers.
- The consideration for the acquisition stands at $150 million.
- The acquisition aligns perfectly with Entain’s strategy for market and audience expansion through superior sports content.
- There exists an opportunity to drive further growth both directly and more broadly for Entain’s brands through enriched data and marketing analytics.
These developments highlight Entain’s commitment to strategic partnerships and acquisitions in the iGaming industry to expand its market presence and enhance its offerings.