Entain focuses on Brazil and UK for growth
Date: 2024-08-09 Author: Kirill Zagoruyko Categories: EVENTS
During its interim results presentation today (8 August), Entain chief commercial officer and president Samir Din said success in these two markets was essential to the group’s organic growth.
CEO Stella David highlighted the first half of the year as a testament to the continued progress in operational improvement, with revenue up 6% on a pro forma basis. Central and Eastern Europe, along with Brazil, were key growth drivers in the six months to 30 June.
Following a 9% increase in net gaming revenue in Brazil in Q1, net gaming revenue grew 48% year-on-year in Q2. Entain expects this positive momentum to continue in H2, with the legal betting and gaming market set to open on 1 January 2025.
Samir Dean said this was a testament to the impact of the operational transformation, with the company now focusing on the UK.
Pure gaming revenue in the UK and Ireland fell 6% to £1bn, which the operator attributed to regulatory changes in the previous year. Gaming revenue fell 7% to £611.2m, while sports betting revenue also fell 5% to £393.5m, as player bets fell 10%.
“We are taking the same approach to operational improvement in the UK as we have in Brazil, and although the UK is at an earlier stage of the transformation, we are seeing encouraging signs of growth,” Dean told analysts.
Brazil is Entain’s fastest growing market
Brazil has emerged as the fastest growing market, while the UK is the largest, Dean explained.
First-time depositors (FTDs) in Brazil exceeded 2022 and 2023 levels in the first half of 2024, driven by improved marketing investments and a refreshed Sportingbet brand in Brazil.
Payments localization has been a driver of growth. The launch of instant payments via Pix resulted in more than a million deposits in the week following the launch in Brazil.
Satti Bhens, chief product officer at Entain, noted that localization was critical to performance in markets like Brazil, and the company has doubled the headcount in its localization teams.
There will be four times as many app improvements in 2024 compared to the previous year, he added, with the transition to a regulated market a top priority for the company.
Entain is also making the necessary technical and regulatory changes to comply with the requirements of the open betting market in Brazil, in preparation for its January 2025 launch. Sportingbet applied for a license in July, meaning it will be among the first licensees if approved.
Casuals, new products and LadBucks drive UK recovery
Entain’s UK and Ireland business is set to return to growth by the end of the year, partly due to a focus on recreational customers.
Simplifying key customer journeys in the UK is a key focus, said Bhens, along with improving site speed and further developing LadBucks’ rewards and engagement programme. LadBucks has improved conversion rates for real money transactions.
A new in-house bet builder will be launched ahead of the upcoming Premier League season, as well as app updates to improve loading speeds for players.
“We are seeing encouraging signs of progress thanks to the hard work of our new UK leadership team,” said Dean.
Entain’s UK leadership team was separated from the wider European management structure at the start of the year. Freed from European responsibilities, the management can focus their full attention on the UK and Ireland.
CEO Stella David highlighted the first half of the year as a testament to the continued progress in operational improvement, with revenue up 6% on a pro forma basis. Central and Eastern Europe, along with Brazil, were key growth drivers in the six months to 30 June.
Following a 9% increase in net gaming revenue in Brazil in Q1, net gaming revenue grew 48% year-on-year in Q2. Entain expects this positive momentum to continue in H2, with the legal betting and gaming market set to open on 1 January 2025.
Samir Dean said this was a testament to the impact of the operational transformation, with the company now focusing on the UK.
Pure gaming revenue in the UK and Ireland fell 6% to £1bn, which the operator attributed to regulatory changes in the previous year. Gaming revenue fell 7% to £611.2m, while sports betting revenue also fell 5% to £393.5m, as player bets fell 10%.
“We are taking the same approach to operational improvement in the UK as we have in Brazil, and although the UK is at an earlier stage of the transformation, we are seeing encouraging signs of growth,” Dean told analysts.
Brazil is Entain’s fastest growing market
Brazil has emerged as the fastest growing market, while the UK is the largest, Dean explained.
First-time depositors (FTDs) in Brazil exceeded 2022 and 2023 levels in the first half of 2024, driven by improved marketing investments and a refreshed Sportingbet brand in Brazil.
Payments localization has been a driver of growth. The launch of instant payments via Pix resulted in more than a million deposits in the week following the launch in Brazil.
Satti Bhens, chief product officer at Entain, noted that localization was critical to performance in markets like Brazil, and the company has doubled the headcount in its localization teams.
There will be four times as many app improvements in 2024 compared to the previous year, he added, with the transition to a regulated market a top priority for the company.
Entain is also making the necessary technical and regulatory changes to comply with the requirements of the open betting market in Brazil, in preparation for its January 2025 launch. Sportingbet applied for a license in July, meaning it will be among the first licensees if approved.
Casuals, new products and LadBucks drive UK recovery
Entain’s UK and Ireland business is set to return to growth by the end of the year, partly due to a focus on recreational customers.
Simplifying key customer journeys in the UK is a key focus, said Bhens, along with improving site speed and further developing LadBucks’ rewards and engagement programme. LadBucks has improved conversion rates for real money transactions.
A new in-house bet builder will be launched ahead of the upcoming Premier League season, as well as app updates to improve loading speeds for players.
“We are seeing encouraging signs of progress thanks to the hard work of our new UK leadership team,” said Dean.
Entain’s UK leadership team was separated from the wider European management structure at the start of the year. Freed from European responsibilities, the management can focus their full attention on the UK and Ireland.
