Gambling giant Entain: Growth in Brazil and UK focus for 2024
Gaming giant Entain has presented its interim results for the first half of 2024. The report shows that business in Brazil has seen significant growth. Consequently, the company has decided to focus its efforts for the current calendar year on Brazil and the UK.
Revenue Increase of 48% in Brazil
Entain's interim results for the first half of 2024 [Link in English] were presented on August 8. Sameer Deen, President and Chief Executive Officer of Entain, highlighted in his speech that growth in Brazil and the UK is essential for the organic revenue growth of the gaming corporation.
The reason for this target is the business figures from the first half of 2024. Entain achieved a revenue increase of 6%. Apart from Central and Eastern Europe, Brazil was particularly a growth driver for the gaming corporation. In the first quarter of this year, net gaming revenues in Brazil increased by 9% compared to the previous year.
In the second quarter, this figure even reached 48%. The responsible parties hope that this positive momentum will continue in the second half of the year and into the next year. From January 1, 2025, online gaming and sports betting will be legalized in Brazil. Entain already expects an increasing enthusiasm for its gaming offerings as a result.
Brazilian Market Growing Fastest
According to the President's statement, Entain has achieved its greatest growth in Brazil. This is due to a significant increase in the number of first-time depositors. Entain has improved its performance marketing in Brazil and invested large sums in it. At the same time, the gaming corporation has created a new brand experience for Sportingbet in Brazil.
In addition, Entain has integrated local payment service providers. It is now possible for Brazilian players, for example, to make instant payments via the provider Pix. Within the first week, the introduction of this service provider led to more than one million deposits.
Entain has also doubled the number of employees in its Brazilian localization teams. The corporation has concluded that localization is a crucial factor and will focus on it in the future.
The responsible parties have already announced that they will make the necessary technical and regulatory preparations to be present on the open Brazilian gaming market from January 2025. Sportingbet has already applied for its license in July of this year and therefore has good chances of being one of the first licensees.
In January of this year, Entain withdrew from 140 unregulated markets. In the past, there had been repeated violations of gambling regulations in various countries. From January 2025, there will be a regulated market in Brazil, on which Entain expects high revenue increases.
Strong Growth in Europe
In addition to the revenue figures from the UK, Ireland, and Brazil, further regions were also presented during the presentation. In Central and Eastern Europe, Entain achieved a growth of 12% in the first half of 2024.
There was particularly strong growth in Croatia: Compared to the previous year, revenue figures increased by 17%. Thus, Croatia is the European country with the strongest growth for Entain.
Growth can be attributed particularly to the brand SuperSport. Entain had acquired the Croatian provider of gaming and sports betting in 2022 [Link in English].
Declining Revenue Figures in the UK and Ireland
Deen also addressed the current revenue figures from the UK during the presentation. Net gaming revenues in the UK and Ireland had decreased by 6% in the first half of 2024. According to Entain, regulatory changes from the previous year were the cause of this.
Revenue from sports betting also declined. According to Entain, lower player stakes were the cause of this, with a 10% decrease. Despite the declining revenue, Entain will continue to focus on the UK and Irish market:
"We are pursuing the same operational turnaround approach in the UK as we are in Brazil, and although the UK is not as far along in its transformation process, we see encouraging signs."- Sameer Deen, President and Commercial Director of Entain, Entain**
While Brazil is Entain's fastest-growing market, the UK is the largest market for the gaming conglomerate.
Revenue to be Increased with Targeted Measures
The company expects business in the UK and Ireland to grow again by the end of the year. Entain plans to simplify the customer experience and increase the speed of its gaming sites. This could include sites such as Foxy Bingo, Gala Casino, or PartyPoker.
In addition, the free rewards and engagement program LadBucks will be further developed to increase real-money activities.
Entain also plans to introduce a new internal sports betting offering before the start of the Premier League. In this context, the apps of Entain's sports betting brands will also be optimized to provide faster loading speeds. These could include brands such as Ladbrokes, Coral, or Betcity.
Will the Brazilian Market Pull Entain Out of the Crisis?
According to Sameer Deen, President of Entain, Brazil is currently a key market for the success of the gaming conglomerate. After Entain incurred a billion-dollar loss in 2023, the upcoming regulation of the Brazilian gaming market could mean a significant boost.
It remains to be seen how the business figures for the second half of 2024 will develop and whether Entain will receive a license for the Brazilian market.
The positive growth trend in Brazil, as evidenced by a 48% increase in net gaming revenues in the second quarter of 2024, has led Entain to focus its efforts for the current calendar year on both Brazil and the UK.
With online gaming and sports betting set to be legalized in Brazil from January 1, 2025, Entain anticipates a surge in enthusiasm for its offerings in the Brazilian market, potentially aiding in its recovery after incurring a significant loss in 2023.
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage