Entain PLC has announced its results for the year ended 31st December 2023 revealing an 11% increase in group revenues to £4.8 billion ($6.1 billion/€5.6 billion).
2023 Full Year Highlights
- Net gaming revenue (NGR) – £4.8 billion ($6.1 billion/€5.6 billion), up 11%
- Revenue – £4.7 billion ($6 billion/€5.5 billion), up 11%
- Gross profit – £2.9 billion ($3.7 billion/€3.4 billion), up 7%
- Underlying EBITDA – £1 billion ($1.2 billion/€1.1 billion), up 1%
- Underlying operating profit – £641.8 million ($826.4 million/€753.6 million), up 18%
- Underlying profit before tax – £444.9 million ($572.8 million/€522.4 million)
- Profit after tax – £339.1 million ($436.6 million/€398.2 million)
- (Loss)/Profit after tax – (£878.9 million) ($1.1 billion/€1.03 billion)
Barry Gibson, Chairperson of Entain, commented:
“2023 was a period of necessary, but ultimately positive, transition for Entain. We have significantly strengthened the quality of our revenue base, enhanced our Board, and delivered a resolution to a critical, historic, regulatory issue.
We are making positive progress in our search for a new permanent CEO, and in the meantime Stella is driving the business as it continues to take appropriate actions to deliver changes to drive a better long term performance. We are also making good progress in adding to our Board strength – Ricky Sandler and Amanda Brown joined the Board in recent months and we expect to announce a further appointment shortly.
As our transformation continues the newly formed capital allocation committee has commenced a review of Entain’s markets, brands and verticals. The objectives of the review are to help focus the organization, improve competitive positions and maximize shareholder value.”
Stella David, Interim CEO of Entain, added:
“2023 presented a number of challenges for the Group, both industry-wide and Entain-specific. I am extremely proud of how our people around the world came together to navigate the business through an eventful and at times difficult year. Against that backdrop, Entain was still able to deliver overall revenue growth of 14% including our US joint venture achieving revenue at the top end of expectations.
We have started the new financial year with a clear plan to accelerate our operational strategy, and are making pleasing progress across a range of initiatives to re-focus our market portfolio, prioritise organic growth, drive our share in the US, and expand our margins. We are entirely focused on operational excellence and outstanding execution and, as a result, are confident that we are on a pathway to delivering future growth. We remain confident that our continued focused execution will drive organic growth into 2025 and beyond.”
The full-year after-tax corporate loss of £879 million was a result of reserving £600 million for a deferred prosecution agreement with the UK Crown Prosecution Service, relating to past breaches.
Company to Review Brands
In its report, the company outlined its intentions to review its array of brands, along with capital distribution and operational frameworks.
To facilitate this, Entain has created a Capital Allocation Committee to scrutinize markets, brands, and verticals, with the aim of refining organizational focus, enhancing competitive standing, and optimizing shareholder value. Additionally, the company acknowledged potential implications from the newly imposed British online casino spin limits on this year’s results. Through Project Romer, Entain seeks to offset these effects by achieving £70 million in net run rate cost savings.
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
Entain, a leading global sports betting and gaming company, recently released its financial report for the year 2023, revealing a significant loss of £878.9 million. This news comes as a surprise to many investors and industry analysts, as Entain has been a strong player in the market for several years.
The loss can be attributed to a number of factors, including increased competition in the sports betting and gaming industry, regulatory challenges in key markets, and the impact of the COVID-19 pandemic on the company’s operations. Despite these challenges, Entain remains optimistic about its future prospects and is taking steps to address the issues that led to this loss.
One of the key areas of focus for Entain moving forward is its digital strategy. The company has been investing heavily in its online sports betting and gaming platforms, as more consumers shift towards digital channels for their entertainment needs. By enhancing its digital offerings and improving the user experience, Entain hopes to attract new customers and drive revenue growth in the coming years.
Additionally, Entain is exploring opportunities to expand into new markets and diversify its product offerings. The company recently announced plans to enter the US market, where sports betting is rapidly growing following the legalization of online gambling in several states. Entain sees this as a key growth opportunity and is positioning itself to capture market share in this lucrative market.
Overall, while the financial report may show a significant loss for Entain in 2023, the company remains confident in its ability to overcome challenges and drive long-term success. By focusing on its digital strategy, expanding into new markets, and diversifying its product offerings, Entain is positioning itself for growth and profitability in the years to come. Investors and industry watchers will be closely monitoring the company’s progress as it works towards achieving its strategic goals.
