Entain declares strong 2021 NGR as BetMGM delivers five times better YoY

Entain has published its full-year 2021 financial results, declaring strong group net gaming revenue growth while noting expansion into 31 regulated markets.
Image: Entain

Entain has published its full-year financial results for 2021, declaring strong group net gaming revenue growth while noting expansion into 31 regulated markets.

Commenting on the results, CEO Jette Nygaard-Andersen highlighted the firm’s trading performance over the period, during which BetMGM delivered five times better than what it did in the previous year.

Publishing its full-year 2021 results, Entain reported group NGR of $5.19bn, a 7% increase year-over-year when compared to FY2020’s $4.85bn.

The group’s online NGR improved by 12% YoY to $4.10bn (FY2020: $3.67bn) thanks to strong performances in Australia, Brazil, Italy, and the Baltics. It also achieved double-digit growth in all key markets excluding Germany and the Netherlands, and a robust performance from current year acquisitions which have contributed 3% of online NGR.

Entain also saw a good performance in Retail as year-end volumes returned to over 90% of pre-Covid levels, with its NGR standing at $1.05bn, a 7% decrease YoY (FY2020: $1.14bn).

The group’s underlying EBITDA grew by 5% YoY to $1.18bn (FY2020: $1.13bn) while its operating profit came in at $647.4m, a 9% decrease YoY (FY2020: $708.1m).

Entain’s net debt at the end of 2021 stands at $2.79bn (2.4x), $428m higher than the 2020 year-end net debt despite M&A cash flows of $683m and further investment in BetMGM of $219m.

Nygaard-Andersen stated: “Our full-year results demonstrate yet again that Entain is a business with growth built into its business model.

“Our strong performance is underpinned by the Entain platform which encompasses the compelling combination of our proprietary technology, our outstanding people around the world, and our industry-leading operational capabilities.

“It is this unique platform that enables us to deliver an ever-improving customer experience, to embrace emerging consumer and technological trends, and to grow into new markets and product areas.”

Turning to BetMGM, Entain’s joint venture with MGM Resorts International, its performance in 2021 was five times greater than the previous year, with net gaming revenue improving to around $850m. Same state revenues were up around 140% YoY.

BetMGM, currently the number two operator for sports betting and igaming, held a Q4 market share of 23% across the markets in which it operates, and a 29% market share in igaming.

Costs per acquisition for BetMGM were in line with forecasts, reaffirming Entain’s expectation of achieving a long-term cost per acquisition of $250.

BetMGM is now live in 21 markets, reaching over 37% of the US adult population, with launches in Illinois and Ontario planned soon.

As a result of the growth in 2021, Entain has upgraded its expectations for BetMGM in 2022, forecasting a net revenue from operations of over $1.3bn, as well as a positive EBITDA in 2023 and a 20%-25% market share.

Nygaard-Andersen continued: “All of our major markets have performed well. In particular, BetMGM in the US has delivered a five times increase in net gaming revenue versus the previous year, and is ready to challenge for the number one position across the markets in which it operates.”

Entain also offered an update on Brazil where it claims to be the market leader, citing exceptional growth with actives up 156% and NGR improving by 111% in 2021. The group noted that, thanks to the strength of its Sportingbet brands and operational expertise, its Brazilian performance is in good shape, even with heightened competition ahead of sports betting regulation expected during 2022 and gaming in 2023.

Looking forward, Entain expects its retail business to continue heading towards pre-pandemic levels, remaining confident in its 2022 financial performance and long-term prospects as global economies emerge from the impact of Covid.

Nygaard-Andersen concluded: “Given the quality of our people, the ongoing broad-based growth of the business, its continuing momentum, and the investments that we are making in innovation to support our future expansion, we remain confident in our financial performance for FY22 and beyond.”