Entain experiences “earlier than expected” UK&I growth in H2
Entain’s note also highlighted Gavin Isaacs’ entrance as group CEO on 2 September. Isaacs is working with his predecessor Stella David to ensure a smooth transition. David will succeed Barry Gibson as chair of the company on 30 September.
The group suffered a 6% drop in group NGR (net gaming revenue) across its UK&I business in H1, as both gaming and sports NGR dipped 7% and 5% respectively on regulatory changes enforced last year.
A 17% drop in online sports wagers hit the Entain UK&I business in the six-month period. Overall online revenue for the region was down 8%.
But interim CEO Stella David said at the time that UK turnaround efforts were in motion and the operator expected to return the region to growth in H2.
Various product and operation changes have enabled the group to speed up the process and it said in its trading update that the turnaround had happened “earlier than expected”.
So far in H2 the UK&I arm has seen stronger volumes and margins in sports than the previous six-month period, which has boosted betting NGR so far.
“In the UK, we have KPIs that are moving forward at pace that give us confidence in getting back to growth in that critical market for us,” David said during Entain’s H1 results.
“The good news is that we are starting to now see the delivery of those improvements.”
How has Entain sped up its UK&I growth?
Improvements include simplifying customer journeys across its UK products and launching a new Bet Builder offering at the start of the Premier League season. New loyalty programmes – Lad Bucks and Coral Coins – were also introduced in H2 to engage players and convert to real money activities.
Entain Group CCO Sameer Dean said the team was also redesigning the Ladbrokes front end and enhancing site speed and UX across the UK.
Online NGR growth in H2 has so far exceeded the company’s expectations, the trading update said.
International and CEE regions are also “performing well” in H2. CEE carried the group in the first half of the year, reporting an online revenue increase of 130%. Betting revenue was up 213% to £181.5m, while gaming revenue also climbed 22%.
As for the US, Entain’s BetMGM JV introduced a new enhanced parlay and player prop offering powered by its in-house Angstrom platform. It also launched a single, digital wallet in Nevada ahead of the NFL season.