Proudly sponsored by
4. Entain
Financials: In the first half of 2024, the Net Gaming Revenue (NGR) for Entain was recorded at £2.9 billion (including a 50% stake in BetMGM), remaining flat on a year-over-year pro forma and constant currency basis. The adjusted EBITDA was £524 million, reflecting a 4% decline on a pro forma and constant currency basis.
Strategy & Impact: Entain has scaled its operations over the years through a combination of organic growth and mergers & acquisitions, involving both major mergers and strategic acquisitions of ‘local heroes’.
Geographic Reach: With operations spanning over 40 territories, Entain holds 50% ownership of BetMGM in North America and is actively investing in increasing its market share in Brazil and the Central and Eastern Europe (CEE) region.
Influence & Leadership: Established 20 years ago (originally as GVC) with a single brand, CasinoClub, Entain has become a prominent leader in the industry. The company is also noted for its responsible gaming initiatives, with an advanced responsibility and care system.
The most notable news for Entain in 2024 was the announcement that Gavin Isaacs would assume the permanent CEO position following the swift departure of Jette Nygaard-Andersen in December 2023.
The board made a carefully considered decision rather than an impulsive one, taking 222 days before unveiling Isaacs as the new CEO of the FTSE 100 company in July, with him officially assuming the role on 2 September.
Isaacs, bringing 25 years of industry experience, now leads a publicly listed company with numerous components, including over 30 brands. However, some segments appear to be considered as no longer essential.
In fact, Entain is reportedly looking for a purchaser for PartyGaming, while a strategic review led by the internal capital allocation committee has deemed Crystalbet to be “non-core” to the group. Nonetheless, Entain has expressed its intention to retain the Georgian subsidiary.
Management has characterized 2024 as a “transformative” year for the parent company of Ladbrokes Coral and bwin, aimed at resuming structural growth. The focus on operational performance has been described as “bearing fruit” in the first half of the year, which continued into the second half. In a September trading update, Entain announced that the UK and Ireland division—the largest segment by group NGR—recorded year-over-year growth earlier than anticipated. Entain CEE, a venture with Emma Capital targeting the CEE region, has shown strong performance, with pro forma NGR rising 12% in constant currency terms during the first six months of 2024. A standout was SuperSport in Croatia, where online NGR increased by 19% year-over-year in constant currency terms.
Moreover, Sportingbet in Brazil has seen substantial gains over the past 12 months, with NGR in the first half rising 28% year-over-year in constant currency terms. This success is attributed to a strategic realignment that included establishing a local presence in Brazil, increased marketing efforts, and significant enhancements to the localized product.
In the United States, BetMGM reported $1 billion in net revenue for the first half of the year, benefiting from the integration of player props and Single Game Parlays (SGPs) powered by Entain-owned Angstrom Sports. BetMGM captured a 15% market share in the third quarter (22% in igaming) in the US, which is considered one of Entain’s critical markets for success. Restoring investor confidence is another priority for Isaacs, given that the company’s shares have decreased by 23% this year.
If you’re fortunate enough to be recognized as a Power 50 operator, ensure your attendance at the Power 50 Summit in April next year.
The post EGR Power 50 2024: 4. Entain first appeared on EGR Intel.
“`