Entain's 2020 Win is a Win for the UK Market, and the Entire iGaming Industry
Published January 27, 2021 by Lee R
A breakthrough year from one of the UK's key operators bodes well for the sustainability of iGaming.
Leading UK-listed gambling giant Entain Plc has revealed welcome indications of resilience in iGaming's largest market.
Positive Gains
The good news starts with the hiring of Entain's new CEO, and continues with a 41% rise in online revenue for Q4 2020.
Meeting the New CEO
The new leader is CEO Jette Nygaard-Andersen, who replaces outgoing Shay Segev. Segev announced he was stepping down earlier this month effective immediately, leaving his availability until July 8th to answer questions from his successor.
Expertise
Nygaard-Andersen moves up from her post as Entain's independent director since 2019, when the company was known as GVC Holdings.
Nygaard-Andersen's previous executive service stretches across a number of major European non-gambling firms including media conglomerate Modern Times Group and Danish shipping giant AP Moeller-Maersk.
Hitting the Ground Running
Nygaard-Andersen “cannot wait to get started” in her new leadership role, and is focusing on extending Entain’s “extraordinary momentum” in existing markets while expanding into new regulated markets within a “deeply wedded” commitment to Entain's player-protection imperative.
Historic Post
This marks the inaugural ascendance of a female to the top spot in a publicly traded UK gambling operator, a position Denise Coates currently holds with private-owned online betting giant Bet365.
Second in Command
To assist Nygaard-Andersen, Entain CFO Rob Wood has been promoted to deputy CEO. Wood will oversee company retail operations in the UK, Belgium, Ireland and Italy; and M&A activities.
Work Ahead
Woods will be tasked with addressing the fallout from MGR Resorts cancellation of its acquisition of Entain; while overseeing efforts to acquire Optibet and Ninja Casino parent company Enlabs out of Latvia.
Revenue Profile
Entain's Thursday press release further revealed group revenue was up 7% in the final three months of 2020 thanks to online operations offsetting predictably major declines at the retail (land-based) level.
Vertical Breakdown
Online sports betting carried the day with a 25% year-on-year increase for Q4, with margins improving by 2.4 points for a whopping 59% rise in betting revenue. Online casino/poker/bingo revenue rose another 28%.
Outlook
With online revenue improving 27% as retail dropped 37%, Entain maintains its original forecast of FY20 earnings of £825m-£845m, providing an exemplary case study on how iGaming is capable of offsetting covid-induced land-based losses in iGaming's most important market.
