Entain has described “another year of strong financial and operational progress”, as the group looks forward to building on the past 12 month to “continue looking to the future with confidence”.
The period’s revenue increased 12 percent to PS4.29bn (2021 : PS3.83bn), which would be an 18% increase if you exclude the 50 per cent share in BetMGM.
The year saw a 12 percent increase in group-wide gross profit to PS2.71bn (2021 : PS2.43bn), and underlying EBITDA rose 13 percent to PS933.2m (2021 : PS881.7m). Operating costs rose 18% to PS1bn in 2022 (2021: PS952.7m).
Concerning NGR’s North American-based efforts the group reports that NGR has risen 71% year-on-year, to $1.44bn. This is in line with expectations.
Entain reported a 29% share of igaming in markets where it operates and a 16% share in regions where sports betting is available.
In the future, revenues are expected to range from $1.8bn to $2bn in the current year. EBITDA will also be positive through the second half 2023.
“BetMGMGM has already been profitable in many states. We expect BetMGMM to be EBITDA-positive in the second half 2023, and a long-term target EBITDA margin between 30 percent-35 percent,” stated Jette Nygaard–Andersen CEO of Entain.
“In sum, BetMGM is on track to profitability and has consolidated its position as a leader within the US sports betting markets and igaming market.”
The headline revenue figure was further broken down. Total online revenue fell one percentage point to PS3bn. Sports remained flat at PS1.44bn while gaming closed with a small drop at PS1.57bn.
Entain said that this is due to strong COVID comparison and the absorbed material consequences of regulatory changes in particular the UK.
Retail NGR rose 62% to PS1.27bn (2021 – PS791.1m). This was due to improved performance across the core markets in the UK and Italy, as well as a better offer through gaming and betting machines.
Entain also increased its operational output through five acquisitions over the past twelve months, including the purchase of Avid Gaming, Klondaika from Latvia, Totolotek, and BetCity in The Netherlands.
Entain CEE was also formed in partnership with EMMA Capital with the aim of expanding into the CEE region. The first acquisition interest in this goal was the Croatian online casino operator SuperSport.
Nygaard Andersen stated, “We made outstanding financial, operational, and strategic progress in 2022 and took significant steps towards our goal to be the global leader of betting, gaming, and interactive entertainment.”
“I am proud Entain is leading our industry in responsible gaming, and we are the only global operator that focuses exclusively on domestically regulated markets.
It is a sign of the solid progress we have made in executing the sustainable growth strategy. We continue to see many opportunities around the globe as we expand into $170bn of market.
“We have a business model which is truly diverse across more than 40 countries, a platform which gives us competitive advantages and a total dedication to providing our ever-growing customer base with a safe environment to enjoy our products.
These factors, along with strong underlying momentum in our business, allow us to continue looking to the future with confidence.”
