Entain records strong performance in Q4 of 2022
Author:
Muhammad Gregory
Multinational sports betting and iGaming company, Entain has published its quarterly report for the fourth quarter of 2022. The online Net Gaming Revenue (NGR) registered a 12% year-on-year spike, while the number of active users on the operator’s sites also showed a significant increase in the period between October 01, 2022, and December 31, 2022.
Entain’s performances were especially high in their online sectors. ?Mufid Majnun/Unsplash
In 2022, Entain had a strong performance, driven by the continued growth of its online and mobile betting and gaming offerings. The company’s revenue increased significantly, primarily due to strong growth in its online sports betting and gaming operations. Additionally, Entain made strategic acquisitions to expand its presence in key markets and further enhance its product offerings. The operator also continued to invest in technology, such as artificial intelligence and machine learning, to improve customer experiences and drive growth. The company’s investments in these areas have allowed it to better understand and engage with its customers, leading to higher customer retention and loyalty.
New heights for online revenue
Overall, Entain’s strong performance in 2022 demonstrates the company’s ability to adapt to changing market conditions and customer preferences and its commitment to delivering innovative and engaging products and experiences to its customers. Hence, a strong performance in the fourth quarter of 2022 does not come as a big surprise. The Group NGR was up 11%, while the online NGR touched new heights with a 12% year-on-year spike. A significant increase was predictable due to the FIFA World Cup 2022, which encouraged bettors around the globe to participate in online sports betting across several platforms in a month-long extravaganza.
The number of active users on the websites of Entain-owned operators also recorded a staggering increase as it was up 14% in Q4, marking a 7% year-on-year increase. Meanwhile, the retail NGR increase was also in double figures as it went up 10%. A 15% spike was recorded in FY22 NGR, inclusive of the BetMGM joint venture in the United States. The numbers were strong even if the joint venture was excluded, as FY22 Group NGR soared 12%. The new rules introduced by the United Kingdom Gambling Commission (UKGC), coupled with the formation of a central gambling authority in Germany in the form of the Gemeinsame Glucksspielbehorde der Lander (GGL) had an impact on the FY22 Online NGR as it went down 1%.
Entain’s retail operations, spread across multiple European countries, have recorded a 66% jump in NGR in 2022. According to the report, the recorded figures were higher than the ones recorded before the Covid-19 pandemic hit. In addition to that, the customer base has also expanded and market share gains have also been reported. The projection of the FY22 EBITDA is between the bracket of ￡985 million and ￡995 million, marking a 12% year-on-year increase.
Acquisitions fuel growth
The Entain Group made several strategic acquisitions to expand its presence in key markets and enhance its product offerings. Some of the notable acquisitions made by the company during the year include the take-over of SuperSport in Croatia, which was completed in November 2022. Last month, the Isle of Man-based operator also completed the acquisition of Dutch operator Bet City and entered the regulated gambling markets of the Netherlands. SuperSport’s contribution to the FY22 EBITDA has been ￡8 million. Entain also launched its e-gaming betting and skill-based wagering brand UNIKRN in Brazil and Canada. The operator has more launches in mind that will take place sometime in 2023.
Entertain is going strong not just across the European continent but also performing well in the United States with its joint venture entity BetMGM. The entity has recorded impressive numbers in 2022. BetMGM expanded its operations further and recently made its presence felt in Maryland, Ohio and Massachusetts. Its sportsbook app was redesigned and the functionality developments are an ongoing process for Entain’s joint venture entity.
The Chief Executive Officer of Entain, Jette Nygaard-Andersen, conveyed her satisfaction based on the positive quarterly report. In addition to that, the CEO expects Entain to continue on this path to sustainable growth in 2023.
“2022 has been another year of strong financial, operational and strategic progress for Entain. We have continued to grow our revenues in a sustainable and diversified way by expanding our global footprint, broadening our customer appeal, entering new areas of entertainment, and providing a safe environment for our customers. All of this has led to a record number of active customers in Q4, as well as a full year EBITDA performance ahead of our previous expectations. We have started 2023 with good momentum across the business and remain confident in our ability to continue delivering on our growth and sustainability strategy in the year ahead.”
