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Entain Provides Update on Current Trading and FY23 Guidance

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Entain plc has provided an update on current trading and FY 2023 guidance, as well as plans to update shareholders on the progress of ongoing actions to accelerate operational performance and drive shareholder value.

Current Trading

Post the summer, Online Net Gaming Revenue (NGR) has been mixed across the Group, but in aggregate, softer than anticipated. Q3 Online NGR growth is now expected to be up high single-digit percent, and down high single digit percent on a proforma basis. Key drivers include:

  • Adverse sporting results impacting sports margins during September
  • Group wide implementation of industry leading safer gambling measures and ongoing regulatory headwinds persisting longer than expected, particularly in the UK
  • Slower growth than expected in Australia and Italy
  • Good underlying Online growth (ex-regulatory impacts) as evidenced by further strong proforma growth in active customers across the quarter
  • Strong performance from recent acquisitions, particularly SuperSport in Croatia
  • Robust performance across Retail

BetMGM in the US continuing to perform well: on track to deliver positive EBITDA in the second half of 2023; FY2023 NGR at the upper end of $1.8-$2.0bn guidance; and the successful rollout of Single Account Single Wallet, as well as online sportsbook enhancements supporting strong start to the NFL season.

Entain now expect Group Online NGR for FY2023 to be up low double-digit percent with proforma NGR down low single digit percent. The company reiterate their expectations for FY2023 EBITDA to be in the range of £1.00bn-£1.05bn supported by robust operational controls.

Actions to Accelerate Operational Strategy and Performance

Over the last three years Entain has undergone a significant strategic transformation, improving the quality of earnings and aligning operations to ensure the Group is positioned as strongly as possible to deliver long term shareholder value.

Alongside the Q3 trading update on 2 November 2023, management will share more detail on how these actions are being implemented to accelerate performance and delivery, including:

  • A comprehensive market review focusing on long-term sustainable organic growth
  • The simplification of Group structures and operations to improve operational leverage and reduce costs
  • A plan for the migration of acquired businesses on to the Group’s industry leading technology platform
  • Optimising our capital allocation priorities
  • Progress on delivery of the Group’s Online EBITDA margin target of 30%

Jette Nygaard-Andersen, CEO of Entain, said: “We continue to see good underlying growth in our online business and are reiterating our EBITDA guidance for the year despite softer than expected revenue growth in Q3 and the ongoing roll-out of industry-leading safer gambling measures. We continue to attract more customers than ever before to enjoy our products and services. BetMGM remains on track to deliver positive EBITDA in H2 and a full year NGR performance at the top end of our expectations, and we are particularly excited about the product improvements that we are rolling out over the NFL season.

“We have made significant changes to the Group over the last three years. Our focus now is on accelerating the actions we are taking to drive sustainable organic growth, expand our margins, capitalise on the US opportunity and deliver long-term returns for our shareholders. We remain confident in our ability to deliver on the vast opportunities ahead of us, and look forward to sharing more detail about the changes that we are making alongside our Q3 trading update in November.”

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Flexion Reports Revenue Increase of 9% for 2024

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Flexion, the games marketing company, has announced that its revenue grew 9% to year-end December 2024. The growth is attributed to the Company’s success in the alternative app store market.

Since its IPO in 2018, the company has built a well-positioned games marketing business around the alternative stores and grown annual revenue 50-fold to almost US$100 million. Its game portfolio represents several billion US$ in gaming IP for alternative market partners like Samsung, Amazon, Huawei, OneStore and Xiaomi.

“With the Digital Markets Act (DMA) coming into force in Europe and recent legal actions in the US, mobile game developers have felt a new-found freedom to explore their market options. We’ve already moved beyond the era when Google and Apple controlled everything. Developers are looking for alternatives that offer better margins, and additional audiences and revenue. Partnering with Flexion opens up a range of market channels with very little up-front investment,” said Jens Lauritzson, CEO of Flexion.

Flexion currently distributes more than 30 high-profile titles on the alternative stores. Top-tier games in the Flexion portfolio make on average US$ 10 million a year based on Q4 2024 run rate. That’s income in addition to their Google and Apple revenue with a business model that adds little to their costs.

In Q4 2024, Flexion-serviced games were, on average, generating 9.3% through the alternative stores of the revenue they made on Google Play. This is a significant boost for Flexion’s partners without major costs or effort.

“If you scale for the size of the stores, the alternatives massively out-performed Google in Q4 for our games. This is exciting both for Flexion’s business and for the future of the games industry as a whole. We’re seeing the beginning of a sea change in games marketing,” Jens said.

“We’re seeing just the beginnings of a major shift in how top-tier developers address their markets. Using Flexion to access alternative stores is an easy first step into the post- Google and Apple world. Many developers are already looking at their options beyond that and Flexion will be right there with them providing the technology and expertise they need to maximise the potential of their games,” Jens added.

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Players Reclaim Close to $7M Through AskGamblers Complaint Service in 2024

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The latest AskGamblers Complaint Service report for 2024 has officially been released. The comprehensive report highlights the most important accomplishments and records of the AskGamblers Complaint Service team for the previous year.

In 2024, The AGCS team (formerly known as AGCCS) managed to return $6,890,547.11 to players. Over 7259 players turn to AskGamblers, submitting complaints against 1114 casino brands. Out of all the accepted and processed complaints, the team had a 68% resolution success rate. One of the notable milestones that reached was returning a total of $70 million to the members.

Dijana Radunović, General Manager at AskGamblers, said: “It’s amazing to see the trust players put in us year after year, and we’re able to repay them by helping them recover their funds from operators or solve other related issues. We’ve had another successful year, with a few records broken and amazing milestones achieved and we can’t wait to see what lies in store in the years ahead.”

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SlotsCalendar Announces its Second Awards Edition at iGC Malaga 2025

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SlotsCalendar, a leading name and tastemaker in iGaming, has announced the second edition of the SlotsCalendar Awards. Winners will be announced during the iGC Malaga event in May 2025.

These awards are rapidly gaining significance in the iGaming world as SlotsCalendar’s steady growth, success, and player-centric mentality represent the community’s interest.

Players have approximately a month to vote between the 10th of April and the 12th of May.

For its 2025 edition, the SlotsCalendar Awards Gala returns to the iGaming Club Conference in Malaga, happening on May 28th. The Awards categories for this year are as follows:

• Game Studio of the Year

• The Slot Everyone’s Talking About

• Star Slot in the Making

• Casino of the Year

• Excellence in Bonus Variety

• Industry Standard in Responsible Gambling

• Live Casino of the Year

• Best Sports Betting Platform

• Best New Casino

• Best Crypto Casino

While the idea of iGaming Awards is not new to the industry, the SlotsCalendar Awards are unique for a simple reason: winners are voted by players from the entire iGaming community.

The uniqueness of these awards makes them particularly important in iGaming. Placing the decision-making strictly in the hands of the player is a fundamental shift in the iGaming community.

SlotsCalendar CEO Viorel Stan said: “It’s truly an honor and a privilege to see how our SlotsCalendar Awards have evolved. Last year’s inaugural edition was a crowning achievement for us. It proved how vast and involved our community is, creating a level of engagement that made us incredibly proud. Being able to return to the iGC and reward some of iGaming’s luminaries in the name of the SlotsCalendar Community is beyond gratifying.”

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