Gambling company Entain has released its financial results for the year 2023, highlighting an increase in net gaming revenue to £4.83 billion, driven in part by the BetMGM joint venture in the US.
However, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for 2024 may be negatively affected.
It is estimated to be somewhere in the region of £40 million due to regulatory adjustments in the UK and Netherlands.
BetMGM was the highlight
The company’s EBITDA improved just 1% compared to 2022, as the group continues to review its markets, brands and verticals under the supervision of a newly appointed Capital Allocation Committee.
Regional results showed a decline in UK and Irish operations as well as international operations. But operations in Central and Eastern Europe and the US showed significant improvements.
The online profit margin increased, driven by growth in sports betting and online gaming, with a 23% increase in active online customers. However, retail numbers fell slightly despite improvements in Poland and New Zealand.
BetMGM had an impressive performance, with a 36% increase in NGR to $1.96 billion. Thus, its market share was 14% in the states where it operates.
Despite a modest increase in group EBITDA to £1 billion, Entain reported a loss after tax in 2023 of £878.7 million. Charges related to operations in Australia were the most damaging.
Stella David takes over as CEO at Entain
The leadership change was also highlighted, with Jette Nygaard-Andersen being replaced on an interim basis by Stella David as CEO.
For the future, Entain expects an impact in 2024 due to regulatory changes in the UK and the Netherlands.
Despite this, the company is focused on accelerating its operational strategy and is confident it is on the right track to deliver future growth.
Barry Gibson, President of Entain, commented that 2023 was a period of positive transition for the company. The highlight was strengthening the revenue base and resolving critical regulatory issues.
He also emphasized progress in the search for a new permanent CEO and the review of the company’s markets, brands and verticals to maximize shareholder value.
