Entain reports 28% rise in full-year online revenue to £2.75bn
FTSE 100 operator matches 2019 performance with digital operations boosted by Covid-19 closures and strong sports margins
Entain has reported a 28% constant currency uptick in full-year online net gaming revenue (NGR) to £2.75bn for 2020.
Cementing 20 consecutive quarters (Q4) of double-digit online growth, Entain said full-year digital performance was buoyed by retail closures due to Covid-19 as customers migrated online.
Online sports NGR increased by 26% to £1.2bn, again boosted by shops being out of action and combined with strong sports margins of 12.7% due to favourable results.
Sports wagers were 7% higher on a constant currency basis, but Entain said it expects sports margins to normalise over time, particularly once retail betting reopens after the pandemic.
Online performance was further driven by a 30% increase in digital gaming NGR to £1.54bn. The figures were especially strong in Q2 due to benefitting from lockdowns and crossover from sports bettors who were left short of real-life events to wager on.
Online underlying EBITDA climbed 50% to £803.5m for 2020.
Below, you can see Entain’s breakdown of 2020 online NGR growth by operating segment:
Overall group NGR came in flat at 1% to £3.63bn, with online growth offset by a 40% constant currency downturn in retail revenue to £857m due to the pandemic.
Overall group underlying EBITDA increased by 11% to £843m, however.
Operating costs before rent were 20% lower at £870m, primarily as a result of cost mitigation actions in response to Covid-19 and ongoing synergy delivery from the Ladbrokes Coral acquisition.
Operational highlights during the year saw Entain reach approximately 18% of market share across all US states, while its US-facing BetMGM brand – a JV with US casino giant MGM Resorts – is now live in 12 states.
BetMGM was also the number one operating in US igaming during January 2021 after the reporting period had ended, according to the operator.
Entain CEO Jette Nygaard-Andersen said: “Having spent more than two decades working with digital companies using technology to transform and disrupt industries, I am hugely excited about the future prospects for Entain.
“We are a digital entertainment company with a clear strategic focus on growth and sustainability. As such, we have a fantastic platform from which to use our proprietary technology to expand into new markets and reach new audiences around the world.”
Entain CEO Jette Nygaard-Andersen
She added: “Today’s results demonstrate the extraordinary resilience and professionalism of our people, as well as the importance of having a truly diversified business model that is not overly reliant on any one product, brand, territory, or channel.
“Furthermore, we firmly believe that the launch during the year of our Sustainability Charter, which includes our game-changing Advanced Responsibility & Care player protection programme, will be a key component in helping us to deliver on our vision of being the world-leader in sports-betting and gaming entertainment.
“The strong underlying momentum within our business, the rapid growth of our US joint venture, and our continuing international expansion mean that we are as confident as ever in the long-term prospects for Entain,” she added.
Despite the strong performance, Entain shares slipped 2% in early trading on the London Stock Exchange.