Online, US markets drive Entain's profit growth in 2020

Entain on Thursday reported rising online revenues offsetting losses in its retail business. The owner of Ladbrokes and bwin said that in 2020 it saw a profit of £113.8 million ($158.6 M) in 2020, compared with a loss of £131.2 million the year before (See the company's presentation here)

Online revenues climbed 28% on 2019 to £2.7 billion, taking it to more than 20 consecutive quarters of double-digit online growth. But revenues across its retail estate fell 40% to £875 million. Revenue and gross profit were both flat at £3.5 billion and £2.3 billion respectively, while earnings rose 10% to £862.1 million. Group EBITDA increased 11% at £843.1 million, at the top end of recently increased expectations.

Entain, which is also behind betting brands including Coral and Sportingbet, said group underlying operating profit was up 2% on 2019, to £529.5 million. The firm's 2020 US revenues were up more than 130% to $178 million (£128 million).

Entain is currently the third-largest operator in the US behind Paddy Power owner Flutter and US firm DraftKings, via BetMGM, a joint venture with MGM Resorts. In 2020, the brand saw its market share grow 18% across the 12 states in which it is now active in the US. It was the number one operator in iGaming in January 2021 across the country, and its full-year revenues amounted to $178m, ahead of expectations.

The company also reported growth and market share gains across all major markets with particularly strong performances in Australia, Brazil, Georgia and Italy as well as from PartyPoker across all its markets.

Jette Nygaard-Andersen, the recently appointed CEO of Entain, commented: “Today’s results demonstrate the extraordinary resilience and professionalism of our people, as well as the importance of having a truly diversified business model that is not overly reliant on any one product, brand, territory, or channel. The strong underlying momentum within our business, the rapid growth of our US joint-venture, and our continuing international expansion mean that we are as confident as ever in the long-term prospects for Entain.”

See the company's full financial results here