Online set to drive revenue up 7% at Entain in 2021
Though Entain did not publish any financial figures at this stage, the business did reveal in a trading update that total online revenue is likely to climb by 12%, with strong growth in all major markets.
Online sports betting revenue is set to increase by 21%, helped by a 20% rise in wagers, while igaming revenue is expected to rise 4% year-on-year.
However, retail revenue is forecast to decline by 3%. This is due to the impact of restrictions related to the novel coronavirus (Covid-19) pandemic, causing many retail venues to close for much of the year. In the UK, for example, betting shops were closed from the start of the year until April.
Entain also referenced its BetMGM joint venture with MGM Resorts, saying that although revenue from this part of the business is not yet finalised for the full year, it is expected to push Entain’s total revenue up 14% year-on-year when included.
Revenue from BetMGM is expected to reach approximately $850m (£624m/€748m) for the 2021 financial year, an increase almost five-fold on the previous year. This could rise to more than $1.3bn in 2022.
Entain said BetMGM enjoyed a 24% market share across sports betting and igaming in the 19 US jurisdictions where it is active during the three months to November 2021.
“2021 has been a successful and eventful period for Entain, and our market-leading platform has driven another year of strong, sustainable and diversified growth,” Entain chief executive Jette Nygaard-Andersen said. “All of our major markets have performed well. BetMGM, our hugely exciting business in the US, has been a particular highlight with FY21 net gaming revenue ahead of expectations and an upgraded outlook for 2022.
“We have also made significant operational progress and have continued to provide our customers with even better content, experiences and excitement as the worlds of media, entertainment, technology and gaming converge.
“As ever, our sustainability efforts have been at the core of everything that we do. We have continued to lead the way in the critically important area of player protection and our technology-based Advanced Responsibility and Care programme is progressing well.”
Entain also published an update for its fourth quarter, during which revenue is expected to be up 4% year-on-year. This is despite a projected 9% decline in online revenue, with online sports betting revenue set to drop by 14% and igaming revenue by 4%.
In contrast to the full year, retail is expected to drive growth in Q4, with revenue from retail set to jump 60% year-on-year.
This was primarily due to the fact that retail faced significant Covid-19 restrictions in the corresponding period in 2020. When compared to Q4 of 2019, retail revenue was still down by 4%.
“We continue to see significant growth opportunities ahead of us, with a total addressable market of around $160bn across our new and existing markets, as well as in emerging areas of interactive entertainment,” Nygaard-Andersen said.
“We believe these opportunities will enable us to at least treble the size of our business. As a result, we remain confident in our prospects for the year ahead and beyond.”