Entain, the global sports betting and gaming group, has weathered a challenging 2023 but emerged with a growing customer base, as revealed in their full-year results. Despite regulatory headwinds and a significant legal settlement, the company’s commitment to operational excellence and strategic expansion into regulated markets has positioned it for future growth.
The year 2023 was marked by a series of regulatory measures that impacted earnings, with Entain forecasting a reduction of around £40 million in 2024 due to affordability checks and other compliance requirements. The company also navigated through the departure of its CEO and a hefty £585 million settlement related to a legacy Turkish business.
However, Entain’s resilience is evident in its financial performance. The group reported a 14% increase in Net Gaming Revenue (NGR), including its 50% share of BetMGM, and a 1% rise in EBITDA to £1,008 million. This growth was fueled by a record level of online active customers, up 23% year-over-year, and a 9% increase in Retail NGR, reflecting the strength of its retail estate and acquisitions in New Zealand and Poland.
Entain’s strategic focus on regulated markets is a cornerstone of its sustainability strategy, with 100% of its revenue now coming from regulated or regulating markets. The company’s exit from 140 markets lacking regulatory regimes underscores its commitment to corporate responsibility and investor duties.
Looking ahead, Entain is poised for organic growth into 2025 and beyond. The company’s revised strategic priorities aim to drive online margins, increase US market share, and capitalize on the opportunities presented by stake caps on online slot games and uniform safer gambling measures. With a clear plan to accelerate its operational strategy, Entain is confident in its pathway to delivering future growth.
