Entain’s 2023 Full-Year Results Reveal Close to a Billion in Net Loss
LISTEN TO THIS ARTICLE:Entain has published its full-year financial results for 2023 with the company seeing an 11% increase in net gaming revenue (NGR) from 2022 to £4.83 billion. Furthermore, gross profit was up year-on-year by 7% at £2.91 billion and EBITDA grew 1% to £1.01 billion from the previous year’s £993.2 million.
However, the company suffered a loss from continuing activities for FY2023 of £878.7 million, whereas in FY2022, it made a profit of £32.9 million. The total loss was £936.5 million. This huge figure is partly due to fines issued to Entain in 2023, including the £585 million settlement reached with the UK’s HMRC and Crown Prosecution Service for breaches of the Bribery Act resulting from legacy Turkish operations.
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. We remain confident that our continued focused execution will drive organic growth into 2025 and beyond.
Related: Entain Starts Search for New CEO after Jette Nygaard-Andersen Steps Down
Optimism for the Future
While the net loss is not positive, Entain chairman Barry Gibson remains positive about the company’s future prospects.
He described 2023 as a year of “necessary, but ultimately positive, transition” and said that they have “strengthened the quality of our revenue base, enhanced our board, and delivered a resolution to a critical, historic, regulatory issue.”
He explained that the new capital allocation committee has begun a review of the company’s markets, brands and verticals in order to help focus efforts, improve Entain’s competitive positions, and increase shareholder value.
Strong Growth in Online Business
Entain reported that its performance met expectations in 2023. The UK was its largest market, generating £1.95 billion in revenue. Italy contributed £517.4 million, and Australia and New Zealand generated £515.1 million. Revenue from the rest of Europe was £1.44 billion, and from the rest of the world, £339.9 million.
In terms of segments, Entain’s online business saw a 12.3% increase in net gaming revenue, reaching £3.43 billion. Gaming revenue rose by 16.6% to £1.84 billion, and sports betting revenue increased by 6.0% to £1.53 billion. Additionally, B2B net gaming revenue nearly doubled to £57.9 million.
However, regulatory challenges in the UK and Germany, along with weaker performance in Australia and Brazil, slowed growth in the online segment. Despite these challenges, Entain saw success with the CrystalBet brand in Georgia and expansion in the Baltics. The company also benefited from acquisitions in Central and Eastern Europe, including STS in Poland and SuperSport in Croatia, as well as its new business in New Zealand and partnership with Tab NZ.
The retail segment also showed positive results, with net gaming revenue increasing by 8.5% to £1.39 billion. Sports betting revenue in retail rose by 15.3% to £813.0 million, and machine revenue slightly increased by 0.2% to £573.7 million. Entain reported growth in several key retail markets, including the UK, Italy, Croatia, Belgium, and Ireland. New retail acquisitions in Poland and New Zealand contributed an additional £40.4 million in net gaming revenue for 2023.
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