Up, Up and Away with Entain
Powered by what can only be described as the spectacular success of its online BetMGM joint venture in the United States, and the surge in across-all-markets iGaming, betting industry titan Entain has forecast a better-than-expected seven per cent rise in net revenue for its 2021 financial year.
Entain Group EBITDA for FY21 is expected to top £885 million (US$1.19bn/€1.05bn), handsomely ahead of previous expectations, the UK-headquartered firm, proud owners of a comprehensive portfolio of established brands, among them bwin, Bet.pt, Coral, Ladbrokes, partypoker and PartyCasino, has reported in a Q4 Trading Update.
Although the FTSE-100 company did not publish detailed financial figures at this date, it said its total online revenue is set to climb by at least 12 per cent, with strong growth in all major markets.
Online sports betting revenue, stacked by its super-successful BetMGM tie-in with MGM Resorts in the United States, is likely to increase by over 20 per cent; while iGaming revenue is expected to rise, year-on-year, by at least four per cent.
Total retail revenue, understandably severely impacted by pandemic lockdowns, is forecast to decline, by about three per cent over the financial year.
But revenue from the BetMGM joint venture is expected to hit US$850 million (£632m/€751.4m), a spectacular five-fold up on FY2020.
And Entain is also predicting that BetMGM revenue could even eclipse US$1.3 billion during FY2022 (£966.6m/€1.15bn).
“We have made significant operational progress and have continued to provide our customers with even better content, experiences and excitement as the worlds of media, entertainment, technology and gaming converge,” said Entain Chief Executive Jette Nygaard-Andersen.
“All of our major markets have performed well. BetMGM has been a particular highlight with FY21 net gaming revenue ahead of expectations and an upgraded outlook for 2022.”
BetMGM currently enjoys a near quarter share of the sports betting and iGaming market in the 19 American states where it plays.
And in Q4 Entain predicts that results will show that even retail—which is centred on its 4,500-odd shops in the UK, Italy, Belgium and Republic of Ireland–is back with a bang.
Retail revenue is now within 10 per cent of pre-pandemic levels and has surged by a predicted 60 per cent in Q4 – compared to the same pandemic-hit quarter in 2020, notes the company.
Added Nygaard-Andersen in a company statement:
“With a total addressable market of around US$160 billion (£118.96bn/€141.44bn) across our new and existing markets, we continue to see significant growth opportunities ahead of us — as well as in emerging areas of interactive entertainment.
“We believe these opportunities will enable us to at least treble the size of our business.
“As a result, we remain confident in our prospects for the year ahead and beyond.”
Only Germany, alone among Entain’s 27 markets, is performing poorly – and this, principally, because of the negative impact of the nation’s new regulatory regime.
Food for future focus.