Entain executives highlighted Brazil as a key driver of its “transformational” year in conversation with analysts on Thursday. The company has reported notable growth in the South American country, with its net gaming revenue (NGR) accelerating by 48% year-on-year in Q2 2024, marking the region as its fastest-growing market.
The company’s success in Brazil was attributed by officials to a strategic focus on operational transformation, enhanced performance marketing investments, and a revitalized brand presence for Sportingbet. This performance is particularly significant as the company prepares for the upcoming regulated betting and iGaming market set to launch in Brazil on January 1, 2025.
During the first half of 2024, Entain saw first-time depositors (FTDs) in Brazil surpass levels from 2022 and 2023, driven by improved marketing efforts and the introduction of instant payments via Pix, which facilitated over a million deposits per week shortly after its launch.
Entain’s Chief Commercial Officer and President, Sameer Deen, stated that localization has been key to this success, with the company doubling its staff across localization teams to better serve the Brazilian market. As part of its preparation for Brazil’s open betting market, Entain has applied for a license for Sportingbet, aiming to be among the first licensees when the market officially opens in 2025.
In contrast to the success in Brazil, Entain’s UK and Irish operations faced challenges, with NGR declining by 6% year-on-year, down to £1 billion ($1.28 billion). The company attributed this drop to regulatory changes implemented in the previous year, which impacted both gaming and sports betting revenues.
Gaming NGR in the UK fell by 7% to £611.2 million ($779.85 million), while sports betting NGR decreased by 5% to £393.5 million ($502 million), reflecting a 10% decline in player stakes.
Despite these setbacks, Entain is optimistic about its prospects in the UK, drawing parallels with its successful transformation efforts in Brazil. The company is implementing a similar operational turnaround strategy in the UK, focusing on simplifying customer journeys, enhancing site speed, and expanding its free-to-play rewards program, LadBucks.
Satty Bhens, Entain’s Chief Product Officer, highlighted the importance of adapting to local markets, stating that the company will implement four times the number of app improvements in 2024 compared to the previous year.
These efforts are aimed at revitalizing the UK market and driving growth through the introduction of new products, such as an in-house bet builder offering, set to launch ahead of the upcoming English Premier League season.
The UK leadership team, now led by Andy Hicks and newly appointed Chief Marketing Officer Charlotte Emery, is fully dedicated to turning around the UK market by simplifying the product and marketing experience, officials said. This restructured team, which was previously part of a broader European management structure, is now focused exclusively on the UK and Ireland.
Entain witnessed its NGR increase by 6% year-on-year to £2.56 billion ($3.24 billion) during the first half of 2024. Online NGR grew by 9%, excluding the US, bolstered by a 13% rise in active customers.
Net loss after tax narrowed to £47 million ($60 million) from the previous year’s loss of £502.5 million ($637 million). Group EBITDA rose by 5% to £524 million ($664 million), while online EBITDA increased to £445 million ($564 million). Retail EBITDA, however, declined by 11% to £140 million ($177 million).
Looking ahead, Entain is preparing for leadership changes, with Gavin Isaacs set to take over as CEO on September 2, 2024, and Stella David assuming the role of Chair on September 30, following the retirement of Barry Gibson.