Entain’s Q4 update underscores our strength
Momentum continues into 2021 under revitalised management
On 21 January we released our trading statement for the fourth quarter and full year of 2020 as a regulatory announcement to the London Stock Exchange.
On the same day we announced the appointment of Jette Nygaard-Andersen as our new CEO, who has made a real impact on the business as a non-executive director over the past year, as well as changes to the roles of Rob Wood, our CFO, who has taken on the additional role of Deputy CEO with specific responsibility for retail and M&A, and Sandeep Tiku, our COO and chief architect of our amazing proprietary technology, who will join the Board later in the year.
Listen to our Director of Investor Relations and External Communications, David Lloyd-Seed, as he gives his overview.
Strong financial performance
David highlights a stellar performance in Online, which enjoyed its 20th consecutive quarter of growth in Net Gaming Revenue (NGR). This contrasts with Retail, which had a particularly tough year due to our shops having to close to help tackle the pandemic in the UK, Italy, Belgium, and Republic of Ireland.
Our business model and investment case, based on diversification through product and geography mix, underpinned by proprietary, industry leading technology and our digital marketing expertise, enabled us to weather the difficulties of 2020 and deliver a remarkable performance. A modest increase in Group NGR on a constant currency basis translated into a further upgrade to our full year EBITDA guidance into the range of £825-845M, up on 2019 by around 10%.
Fantastic progress at BetMGM
David also sets out how BetMGM, our joint venture in the US, delivered a fantastic year. We started the year live in only three states and ended the year in ten, with Iowa and Michigan going live at the start of 2021.
While BetMGM’s market share was up to 18% in the three months to November in the states where we’re live, which is in line with our long term expectations of market share in the range of 15-20%, David outlines indications that the business could be on track for greater success, underpinning our expectation that BetMGM will end the year with NGR between $175-180m, comfortably ahead of our previous guidance.
Our M&A programme also came back to life with the announcement of the acquisition of Bet.pt, a small bolt-on acquisition of the sort we’re so good at which takes the Group into the recently regulated, and rapidly growing, Portuguese market.
After the quarter closed, we announced an offer for Enlabs AB, which operates across the Baltics and Nordics.
David closes with the importance of our Sustainability Charter, which will see us operate in only regulated markets by 2023, and details our further commitment to sustainability initiatives such as Pitching In through the Entain Foundation.