Check-in with the latest Entain Q4 Financial Results – stock prices, UKGC £17m fine, Australian market resilience & high flying retail stats! (Photo by aroblesgalit on Pixabay)
Entain, one of the world’s largest sports betting and iGaming companies, has posted a solid Q4 financial report with a steady 17% increase.
We often report on the company’s performance in our bi-weekly iGaming stocks update as Entain is one of the most widespread iGaming software solutions brands in the online casino industry. The company has partnership deals with the likes of Evolution, BetGames, and Playtech. The later partnership produced the Well Well Well live casino game show via an exclusive Playtech/Entain partnership agreement.
The company is known in the industry for online and retail sectors through sports betting. Some of the iconic global brands are Ladbrokes, BetMGM, Coral and Eurobet, all of which continue to perform well assisting Entian in post-positive financial results pleasing stakeholders and especially shareholders! It is worth noting that these operators got a significant boost from a record number of active customers during the men’s World Cup.
Furthermore, by the end of 2023, the five-year joint venture with MGM Resorts, the operator BetMGM is anticipated to become profitable, and Entain has announced that it will stop investing capital once that brand becomes sustainable. BetMGM doubled its revenue in the last 3 months of 2022, which is operating in 25 states in the US boasting 45% of the country’s adult population. Analysts believe that their 13% market share will bring the operator to the forefront of sports betting globally.
Well Well Well Live Casino Games: Entain operates in a number of online casino markets. This includes es particular focus on sports betting in Australia as well as iGaming and sports betting in the UK, the US and across Europe. In the UK and across regions covered by the Malta Gaming Authority (MGA) licensing, the company has created an exclusive live game show deal with Playtech to create the Well Well Well live dealer game.
No Second Acquisition Bid from MGM Affects Share Prices
MGM Resorts CEO Bill Hornbuckle, was asked at an earnings call if his company would offer a second bid for Entain. He flatly ruled out a second bid and said they would look at other possible acquisitions going forward. Their first bid of £8b was refused by the shareholders in January 2021. The share price took a big hit on this news and fell 13% at one point but is slowly recovering and is currently trading at 1,306.97 GBX.
Entain PLC [LON: ENT]: Currently Entain shares are down 3.2% from the beginning of 2023 and also down 20.26% on the company’s 2022 market opening price on the London Stock exchange. However, its financial reports for Q4 look reasonably solid. Find out more below.
- Current LSE Share Price: £ 1,306.97
- 2023 Market Open: £ 1,350.50
- Movement since Jan 2023 open: -3.2%
- 2022 Market Open: £ 1,350.50
- Movement since 3 Jan 2022 open: -20.26%
Entain Financial Stats Q4 2022 – 12% revenue increase!
The company topped performance expectations and these are the highlights;
- Q4 Net gaming Revenue (NGR)
- Net gaming revenues up 11% for Q4 but full year online net gaming revenue fell by 1% because of UK and Germany regulatory revisions
- Group Revenue for full year was up 12%
- EBITDA for FY22 expected to be approximately £985m – £995m (up from £925m to £975m) ahead of previous guidance
- Retail (land-based) Gambling: Up 66% – higher volumes than pre-Covid levels
- UK Online Gambling Revenue: – dropped 1% as customers were betting at gambling shops… and due to regulatory changes in the UK/Germany. Also the company was fined a record
- BetMGM NGR: FY22 up 15% to £1.88b and on target for positive EBITDA in 2023
- Market Share: market share increase of 20-25% and 30-35% in H2
- Active Players: Up 14% from the previous year boosted by the retail sector
- European Active Customers: Set to increase 7% year on year
Find out more about the Entain fine: Earlier in the year, Entain received a multi-million Sterling fine from the UKGC. Whether the company has settled this debt or not and affects the above figures, I am not sure. However, you can read the full story here –Entain to Pay Record £17m Fine: UKGC Could Revoke Licence.
Entain Q4 Finances Recap
Entain maintains a robust position in the market from strong fundamentals – strategy, operations and finances. The company continues to improve revenue through diversification of markets, engaging entertainment/games and providing a safe gambling environment for customers, through its ARC program (Advanced Responsibility & Care). The program utilizes AI to identify high-risk customers and is apparently 90% accurate.
There may be a slight drop in its Australian business if the recent backing out of sponsorship deals in NSW affects players’ decision to sign up with Entain. Also, new advertising rules could affect revenue, but this is all speculation for the time being. Read more in our Bite-Size Australian Gambling News.
Entain’s momentum has also been bolstered by accelerating the process of exiting markets that aren’t fully regulated. They maintain that this will boost revenues as operational costs will be minimized.
Acquisitions will play a key role in Entain’s future bottom line. ENT will complete the purchase in the coming weeks of BetCity which will open up the Dutch market. The SuperSport purchase was completed last November and in 2 months added £8m to their Q4.
Overall: The future looks bright for Entain in 2023, unless there are major changes in the global market that can adversely affect their 2023 guidance. For more on Entain’s financial situation, you can rewind back to Q1 2022 Results for Entain.
Leave A Comment