Entain achieves record online Q4 as full-year 2022 EBITDA guidance is raised
FTSE 100 operator heralds strong World Cup performance but issues warnings around regulation in the UK and Germany
Entain has announced a record quarter for both online net gaming revenue (NGR) and active customers as full-year 2022 EBITDA is expected to jump 12% year on year (YoY), or 10% in constant currency (cc).
The multi-brand giant revealed its strongest ever quarter for Q4 2022, with online NGR rising 12% YoY, or 8% cc.
The operator said the record performance was driven by the successful winter World Cup, and a 14% uptick in active customers during the period, another record for the firm.
Online sports NGR jumped 13% (7% cc) YoY during the quarter, while sportsbook margin climbed by a percentage point. Igaming NGR also increased by 13% (10% cc).
The group’s three-year CAGR (compound annual growth rate) for online sports betting NGR was up 14% on a cc basis, with online gaming up 11% by the same metric. Overall, three-year CAGR online NGR increased 12%.
Meanwhile, retail NGR in Q4 jumped 10% as the group continues to shake off its post-Covid hangover, resulting in total group NGR increasing by 11% (7% cc) YoY for the reporting period.
Following its strong Q4 performance, Entain revealed it is now expecting its full-year 2022 EBITDA to exceed previous expectations and land somewhere between £985m and £995m.
The London-listed group’s previous guidance put full-year EBITDA at between £925m and £975m.
Should Entain reach its new guidance, it will represent a 12% YoY rise in EBITDA from 2021 to 2022.
Elsewhere, management noted full-year 2022 NGR rose by 12% YoY, although this was significantly driven by its retail arm.
In fact, full-year 2022 online NGR slid 1% YoY, which was blamed on strong Covid comparisons and regulatory headwinds, particulaly in Germany and the UK.
In comparison, retail NGR soared by 66% during the year, with volumes ahead of pre-Covid levels.
Additionally, active customers increased by 7% YoY.
Entain also lifted the lid on the performance of the recently acquired SuperSport, the leading brand in Croatia.
The deal completed on 23 November and SuperSport has already returned £8m in EBITDA for full-year 2022. Entain previously labelled Central and Eastern Europe as a $5bn opportunity.
Touching on the group’s performance, CEO Jette Nygaard-Andersen praised the strategic vision of sustainable expansion as a key driver for the business.
She said: “2022 has been another year of strong financial, operational and strategic progress for Entain.
“We have continued to grow our revenues in a sustainable and diversified way by expanding our global footprint, broadening our customer appeal, entering new areas of entertainment, and providing a safe environment for our customers. All of this has led to a record number of active customers in Q4, as well as a full-year EBITDA performance ahead of our previous expectations.
“We have started 2023 with good momentum across the business and remain confident in our ability to continue delivering on our growth and sustainability strategy in the year ahead,” she added.