EGR Power 50 2024: 4. Entain

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4. Entain

Financials: H1 2024 NGR was £2.9bn (including 50% of BetMGM), which was flat on a YoY pro forma and cc basis. Adjusted EBITDA amounted to £524m (a 4% slide on a pro forma and cc basis)

Strategy & impact: Scale over the years was achieved through a mix of organic growth and M&A – both large-scale mergers and bolt-on deals involving ‘local heroes’ 

Geographic reach: Operating in more than 40 territories, the group owns 50% of BetMGM in North America and is ploughing cash and resources into taking market share in Brazil and the CEE region.

Influence & leadership: Established 20 years ago (then GVC) with a single brand (CasinoClub); now a giant of the space. Also a torchbearer for RG with its advanced responsibility and care system.

Probably the biggest Entain news of 2024 was the announcement Gavin Isaacs would fill the permanent CEO role vacated by Jette Nygaard-Andersen, following her swift exit in December 2023.

However, the board didn’t make a knee-jerk appointment in the wake of the Dane’s departure; it took 222 days for Isaacs to be unveiled in July as the new boss at the FTSE 100 operator, before taking up the reins from 2 September.

Isaacs, an industry veteran with 25 years’ experience under his belt, inherited a publicly listed business comprising many moving parts, including 30+ brands. However, certain parts now seem surplus to requirements.

Indeed, Entain is reportedly seeking a buyer for PartyGaming, while a strategic review undertaken by the internal capital allocation committee concluded that Crystalbet is “non-core” to the group. However, Entain has since said it intends to keep the Georgian subsidiary.

Management has repeatedly described 2024 as a year of “transformation” for the Ladbrokes Coral and bwin parent company in a bid to return the group to structural growth. A focus on operational performance was said to be “bearing fruit” in the first half of the year, and that momentum continued into H2 as the firm announced in a September trading update that UK&I – the largest division based on group net gaming revenue (NGR) – returned to YoY growth earlier than anticipated. Entain CEE, the venture formed with Emma Capital targeting CEE, continues to shine, with pro forma NGR up 12% on a constant currency (cc) basis for the first six months of 2024. A standout performer was SuperSport in Croatia: online NGR rose 19% in cc YoY.

Elsewhere, significant gains have been made with Sportingbet in Brazil over the past 12 months, headlined by NGR in H1 surging 28% YoY on a cc basis. This was attributed to a strategic reset that included putting boots on the ground in Brazil, marketing investments and material upgrades to the localised product.

In the US, BetMGM, which generated net revenue of $1bn in H1, is clearly benefiting from the integration of player props and SGPs powered by Entain-owned Angstrom Sports. BetMGM’s market share stood at 15% in Q3 (22% igaming) in the US, one of Entain’s “must win” markets. Another must for Isaacs is restoring investor confidence seeing as the group’s shares are down 23% so far this year.

If you are lucky enough to be ranked a Power 50 operator, secure your place at the Power 50 Summit next April.