Entain CEO confident on Brazil’s future despite 14% NGR slump in H1
[11:28] Joe Levy Jette Nygaard-Andersen says any knock-on effect to igaming following regulation will be less impactful for group compared to rivals
Entain CEO Jette Nygaard-Andersen has moved to quell concerns in Brazil following a 14% year-on-year (YoY) downturn in H1 2023 revenue.
Speaking on an analyst call following the release of the report, the Dane said she expected H2 to represent a far more positive period for the operator in the market.
Long touted as the next big opportunity in the industry, Brazil is now on the cusp of regulating sports betting following presidential approval last month.
Congress is currently ironing out the final details of the bill.
However, despite the clamour, Entain saw net gaming revenue (NGR) fall by 14% on a constant currency basis. The operator marked Brazil as a “very competitive market” in its report.
While NGR fell during H1, it is up 41% on a four-year CAGR basis, with active customers also increasing YoY.
Entain is looking to use its newly acquired 365Scores product to drive customer acquisition in Brazil. The platform holds a podium position among live scores apps in Latam.
Nygaard-Andersen said: “We are still very much optimistic in terms of Brazil coming online at the beginning of next year. Actives have continued to grow but we reset our marketing approach during H1 with a focus on improving ROI and attaining a more sustainable customer base.
“That curve should now start to turn in H2, not least with the integration that we are doing with 365Scores, which is going really well and will mean that we’re able to customise our offering. Latin America has experienced more intense competition and there’s still a lot of noise in the market,” she added.
When pressed on her plans for igaming in Brazil should the sector be impacted by the regulation of sports betting, the CEO said that while there would be some inevitable impact, the operator was better insulated than its rivals.
The Dane said the revenue split for Brazil was 70:30 in sports betting’s favour.
She continued: “While we are progressing towards licensed sports betting, we are still awaiting clarity regarding the regulation of igaming.
“In terms of whether we would have to stop offering igaming, we will have to wait and see what is decided. You could say there is a risk of that. We’ve had a somewhat lower gaming mix versus our peers, but if it is turned off there will be an impact.”