Entain Expands Market Presence through Tab NZ Partnership and 365scores AcquisitionPublished June 14, 2023 by OCR Editor
Entain, a sports betting and gaming leader, unveils the strategic importance and expected financial impact of its partnership with Tab NZ and the acquisition of 365scores. These developments highlight the company's ambitious plan for market expansion and customer engagement enhancement.
Entain has shared insights on the future implications of its recent strategic moves: a collaboration with Tab NZ and the procurement of sports media business 365scores.
In May 2023, Entain, a global sports betting and gaming entertainment player, partnered with Tab NZ, a betting and broadcasting authority in New Zealand. This 25-year agreement, effective 1 June 2023, will see Entain bolster Tab NZ's operations in the New Zealand market. Entain also concluded the Acquisition of 365scores, a leading sports media platform, in April 2023.
Entain predicts these two mergers and acquisition (M&A) deals will yield an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the range of £15m to £20m for the fiscal year 2024, with an expected rise to £50m in 2025.
Dean Shannon, CEO of Entain Australia and New Zealand, highlighted the synergy between Tab NZ and Entain. He emphasized the partnership's potential for unrestricted access to the regulated NZ market, with an estimated worth of NZ$600m. Shannon predicted an impressive growth of approximately 35% in the next five years. Shannon shared Entain's commitment to a "minimum annual return of NZ$150m back to Tab NZ" within the partnership's initial five years.
The partnership also promises the integration of Punter Assist, Entain's Australian safer gambling tools, into Tab NZ's platform. Shannon expressed his confidence,
This strategic alliance represents a compelling opportunity for growth and value creation.
On acquiring 365scores, Sameer Deen, Entain's Chief Strategy Officer and President of new ventures, emphasized the positive impact on customer engagement. He noted the platform's high frequency of use and its influence in regulated markets such as Mexico and Colombia. Deen said,
365scores' leading position in LatAm complements our current operation in Brazil and supports our growth ambitions in a priority market, foreseeing £15m to £20m EBITDA in 2024.
Entain plc, headquartered in the Isle of Man, is an international operator in the online gambling industry. Formerly known as GVC Holdings, the company rebranded in 2020 to reflect a new commitment to sustainability and conduct and to operate only in regulated markets by 2023. Entain has expanded through acquisitions, such as Unikrn, a US-based esports betting company in 2021, Sports Interaction, a Canadian sports betting operator in 2022, and BetCity, a Dutch online gambling company in 2023. Entain operates consumer-facing brands like Betboo and BetMGM, among others.