Entain, one of the world’s largest betting and gaming operators, is putting Brazil and the United Kingdom at the center of its recovery strategy. During the interim results presentation on August 8, Sameer Deen, Chief Commercial Officer and President of Entain, highlighted:
“Winning in both territories was necessary for the group to drive organic growth in the future.”
Positive performance in Brazil and challenges in the United Kingdom
In the first half of 2024, CEO Stella David celebrated the company’s results as proof of its success in improving operational performance. According to her, the semester was “evidence of the work to improve operational performance bearing fruit.” So with revenue up 6% on a pro forma basis, driven by Brazil and Central and Eastern Europe.
In Brazil, net gaming revenue (NGR) grew 9% in the first quarter and accelerated to 48% in the second quarter. All this, compared to the same period last year. The company expects this positive momentum to continue in the second half of the year, with the opening of the legal betting and iGaming market in 2025.
Deen explained that “this showed the impact of the operational transformation”, now with a focus on the United Kingdom.
On the other hand, the United Kingdom presented a challenging performance. NGR in the UK and Ireland fell 6% to £1 billion, a fall attributed to regulatory changes.
Sports betting and gaming also saw declines, dropping 5% and 7%, respectively.
Even with these challenges, Deen expressed confidence in the market’s recovery, highlighting that “we are taking the same approach to operational recovery in the UK as we have in Brazil, and although the UK is at the beginning of its transformation journey, we are seeing encouraging signs of growth.”
Entain focuses on Brazil for a fast-growing market
Brazil has been the fastest growing market for Entain. According to Deen, “first depositors (FTDs) in Brazil have trended above 2022 and 2023 during the first half of 2024”, driven by better investment in performance marketing and a renewed Sportingbet brand experience.
The introduction of Pix, an instant payment system, was crucial to growth, generating more than one million weekly deposits after its launch.
Satty Bhens, product director at Entain, emphasized the importance of localization for success in markets like Brazil. He mentioned that “localization was essential to performance in markets like Brazil,” and that the company doubled the number of employees on localization teams.
Furthermore, Bhens highlighted that four times as many improvements to the application will be implemented in 2024 compared to the previous year.
Deen also highlighted that the company is preparing for the transition to a regulated market in 2025. Therefore, Sportingbet has already applied for its license in July, placing it among the first licensees, if approved.
UK recovery with focus on casual customers
Entain is optimistic about the recovery of its operations in the United Kingdom and Ireland, focusing on strategies aimed at recreational customers.
Satty Bhens highlighted that “simplifying key customer journeys in the UK is a key focus”, along with improving site speed and developing the rewards program. Additionally, and LadBucks engagement, which has shown effectiveness in increasing conversion rates for real money activities.
The company will launch a new in-house bet maker ahead of the upcoming English Premier League season and update the apps to improve the user experience. Deen mentioned that “we are seeing signs of progress thanks to the hard work of our new UK leadership team”, now separate from the wider European structure. Andy Hicks, former head of retail, leads that team, with Charlotte Emery, former director of William Hill, as CMO since June.
