Entain’s 2021 revenue hits £3.8bn fuelled by strong online growth

Entain has reported revenue of £3.83bn for its 2021 full-year results, which was up almost 8% year-on-year (YoY) on 2020, with online net gaming revenue (NGR) accounting for £3.1bn of this total.

The FTSE 100 firm revealed net gaming revenue (NGR) climbed 7% (8% in constant currency) to £3.9bn, while online NGR was up 12% (13% in cc), the ninth consecutive year of double-digit online NGR growth. Gross profit across the group stood at £2.4bn.

Meanwhile, underlying group EBITDA increased 5% on 2020 to £881.7m. The number of active users leapt by a quarter during the 12-month period.

Entain CEO Jette Nygaard-Andersen said: “Our customer base has 25% more actives than in 2020. Our operations now span 31 regulated or regulating territories and we have established leading positions in each of our key markets.”

The operator pointed to its strong online growth of 20% over the last 12 months as well as a solid year in America as key drivers in its success.

Entain has stated it has a “clear ambition” to become the number one brand in the US, where it operates, through a JV with MGM Resorts, the current number two sports betting and igaming brand, BetMGM, which has a 23% market share. Its share of igaming stateside is 29%, making it the market leader.

BetMGM, which is live in 21 markets, reaching over 37% of the adult population, achieved NGR of approximately $850m, up five times on 2020.

Entain anticipates NGR of $1.3bn for BetMGM in 2022 and expects to reach positive EBITDA in 2023.

Speaking of the US success, Nygaard-Andersen said: “BetMGM in the US has delivered a five times increase in NGR versus the previous year and is ready to challenge for the number one position across the markets in which it operates.”

Overall, the Entain group’s sportsbook vertical recorded a 21% increase in NGR YoY to £1.44bn, while gaming NGR was up 4% to £1.6bn.

Nygaard-Andersen did note that stricter regulations in Europe, most significantly in Germany and the fact the business was shut out of the Netherlands, had affected numbers, however confirmed that the licensing process is underway in the latter and is expected to be resolved by the end of H1 2022.

Elsewhere, the firm noted that its retail division performed as well as it could have hoped, given Covid-19 related restrictions across Europe, as customer levels returned to 90% of pre-pandemic levels.

Retail NGR was, however, down 7% on the year with EBITDA of £66.9m, £31.4m behind 2020 with overall losses for the division standing at £37m.

Entain also announced that it is to repay £44m of Covid-19 government furlough payments, although that remains some way short of the £102m it is reported Ladbrokes and Coral claimed during the pandemic.

Entain shares were up 2.6% at the time of writing to £16.