Entain announces lower-than-expected second-quarter revenue in Brazil

Entain CEO Jette Nygaard-Andersen detailed the challenges facing Entain in the Brazilian market as the company’s growth rate slowed in the second quarter of this year. Remembering that Brazil is currently seeking guarantees for all operators who pay local taxes.

Despite this setback, Entain still had a 26% increase in Net Gaming Revenue (NGR) in the same period. The group’s CEO believes that this is a mere obstacle and not a serious concern for its operations in the lucrative Latin American market. “We continue to lead this market and remain very excited about the country’s long-term prospects.”

The bookmakers Sportingbet and Betboo from Etain have been performing strongly in Brazil for years. The company anticipated increased competition for its position as the country’s largest sports betting entity before regulation.

Jette Nygaard-Andersen afirmou: “No Brasil, o segundo trimestre ainda foi de impressionantes 26%, mas ainda assim foi menor do que esperávamos. Isso resulta em aproximadamente um dos dois pontos percentuais de queda em relação às nossas expectativas anteriores”.

Increased competition combined with the impact of Covid-19 led to this underperforming second expected for Entain in the quarter. An executive complement: “although the macroeconomic impacts are cyclical, we think it is prudent to assume that they persist throughout the year”.

Indeed, Entain has identified Europe as a market where the company needs to focus more efforts today. On the other hand, Entain Chief Financial Officer and Vice President Rob Wood believes that Brazil and Australia are the company’s two strongest and most stable markets at the moment.

Entain CEO does not believe regulation will come out before October in Brazil

Jette Nygaard-Andersen said she does not expect the regulatory process to be finalized before October in Brazil, but she is excited for it to take effect. “We are looking forward to regulation really happening because we are number one in the market, which is obviously a boon for us when it comes to market growth and marketing.”