Analysts were told today that the success of Entain’s “transformational” year 2024 depends on its performance in Brazil and in the UK.
Sameer Deen, chief commercial officer of Entain and its president, said that winning the two territories is necessary to continue organic growth.
Stella David, CEO of CSC Group plc, hailed first-half results as proof that the efforts to improve the operational performance are bearing fruit. Revenues were up by 6% proforma. Brazil, along with the Central and Eastern European Region, was the key growth driver in the six-month period ending 30 June.
In Q2, the net gaming revenues in Brazil increased by 48% compared to Q1. Entain anticipates that this momentum will continue in H2, when the legal gambling and igaming markets open on 1 January 2025.
Deen stated that this showed the impact on the operational transformation. The focus is now shifting to the UK.
The operator blamed regulatory changes from the previous year for the 6% drop in UK and Irish NGR. The gaming NGR fell 7%, to PS611.2m. Sports betting also dropped 5%, to PS393.5m. This was due to a 10% decline in stakes.
Deen said to analysts that “we are using the same approach for operational turnaround in the UK and Brazil, but the UK has just begun its journey of transformation. We are already seeing green shoots.”
Brazil has been named the “fastest-growing market” for Entain
Deen revealed that Brazil is its fastest-growing market while the UK represents its largest.
The number of first-time depositors in Brazil increased from 2022 to 2023 in the first half 2024, thanks in part to an improved marketing strategy and Sportingbet’s revitalized Brazilian brand.
Localisation of payments aided in growth. In Brazil, the launch of Pix instant payments resulted to more than one million deposits in a single week.
Satty Bhens (chief product officer, Entain) said that localisation is critical to performance, especially in Brazil, and Entain has doubled the number of staff across its localisation teams.
Deen noted that the company will implement four times as many app upgrades in 2024 compared with last year. The transition to a more regulated marketplace is “top-of-mind” for Deen.
Entain will also make the technical and regulatory adjustments necessary to comply with Brazil’s requirements for an open betting market in January 2025. Sportingbet submitted its application for a licence in July, meaning it would be one of the first licensees if they were approved.
LadBucks, LadPlayers and new LadBucks products will drive UK recovery
Entain’s UK and Irish businesses will grow by the end the year. This is due to the fact that it targets recreational customers through its various brands.
Bhens stated that simplifying core customer journeys is one of the company’s key priorities in the UK, along with improving website speed and developing its LadBucks rewards program. LadBucks is driving conversion rates to real-money activities.
The English Premier League will see the launch of a new bet-builder app, along with an update to its mobile application that improves loading times for users.
Deen stated that “we are now seeing the green sprouts of progress, thanks to our hard-working new UK leadership group.”
Entain’s UK management team separated from the wider European structure in early this year. Leadership can now focus on UK and Ireland by removing a few European markets from their remit.
Bhens stated that having a team for all European companies was “too many”. The team is now solely dedicated to simplifying UK marketing and product experience. This team is led by former retail boss Andy Hicks, while Charlotte Emery was appointed CMO at William Hill in June.
