Entain, the world’s leading betting and gaming company, has revealed its remarkable first-half results for 2023. Entain reported a stunning 14% increase in net gaming revenue (NGR) to £2.40 billion ($3.06 billion) during H1, backed by a record-breaking flood of active online gamers in Q2.
Entain’s outstanding success in the six months from January to June spans every aspect of its business world. Both online and retail revenue increased significantly, excluding its US businesses, demonstrating the company’s tenacious spirit and steadfast development trajectory.
With the addition of BetMGM, Entain’s joint venture with MGM Resorts, the enthralling story takes an exciting turn. This trailblazing partnership produced an astonishing $944.0m in sales, boosting NGR’s growth to a robust 19%. Notably, BetMGM made history in the second quarter by reporting its first positive EBITDA statistics.
Entain’s route to success is not without obstacles, as it navigates a £585 million provision for deferred prosecution agreement (DPA) discussions with the UK’s Crown Prosecution Service (CPS) for prior operations in Turkey. However, the zealous pursuit of perfection resulted in a significant increase in pre-tax earnings.
CEO Jette Nygaard-Andersen lauds Entain’s robust strides in the pursuit of strategic goals, fueling unwavering confidence in the road ahead. A burgeoning customer base and deepened audience engagement underscore the operator’s unwavering commitment to elevating the sports experience.
Entain’s online prowess takes center stage, with NGR soaring to £1.68bn ($2.31bn). A 145% surge from the same period last year highlights the company’s resilience in the face of regulatory headwinds, particularly in the UK and Germany. The focus on recreational customers yields impressive results, marking a 2% drop in UK NGR, potentially offset by regulatory shifts.
Sports NGR thrives, ascending by 6% to £742.2m, despite a slight 3% dip in online wagers. Gaming NGR in this segment surges by an astounding 19%, while B2B NGR records a remarkable 52% jump.
Entain’s foray into major acquisitions is a resounding triumph. The acquisition of Sportsflare and the enthralling joint venture with Czech investment fund Emma Capital division to acquire Poland’s STS underscore the brand’s dynamic evolution.
Retail NGR basks in an 11% ascent to £709.3m, attributed to the cessation of Covid restrictions. Sports betting and gaming revenue exude vitality, surging by 16% and 4% respectively. Geographically, the UK witnesses a 5% surge, while Italy, Belgium, and Croatia revel in double-digit growth.
The US narrative dazzles with BetMGM’s splendid growth. NGR escalates by a staggering 65% to $944.0m, as the brand spreads its wings across 26 markets. As the curtains rise on BetMGM’s triumphant trajectory, EBITDA positivity becomes a cornerstone, signaling a future of boundless promise.
Entain’s profit journey soars by a resounding 88.7%, while underlying EBITDA, gross profit, and contribution shine in an iridescent tapestry of success. The visionary launch of “Advantage, Served” enriches the match experience, harmonizing data and insights.
Entain’s voyage in H1 is not devoid of challenges, exemplified by the £585m provision. Yet, the brand’s triumph is woven through ceaseless innovation, dynamic acquisitions, and unwavering commitment. The journey ahead is marked by resounding confidence, epitomizing a chapter of unparalleled sports engagement and unparalleled success.
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