Home Business Insights & Advice Ladbrokes sees record revenues in 2021

Ladbrokes sees record revenues in 2021

by Shelly Schiff
16th Aug 21 12:03 pm

Entain plc, formerly known as GVC Holdings, the parent company of Ladbrokes Coral, reported on August 12th that they managed to lift their half-year profits thanks to the Euro 2020 football competition held from June 11th to July 11th. This FTSE 100 wagering juggernaut stated to its shareholders that the entity’s net gaming revenues rose by 28%, connecting twenty-two quarters of double-digit internet growth. Despite retail numbers falling by 43% due to government-issued lockdowns closing betting shops in the UK until April, overall sales spiked by 11%. Underlying profits jumped by 12% to £400 million on revenues of £1.8 billion.

As mentioned, Entain owns Ladbrokes Coral, but it also has the Eurobet and Bwin brands under its umbrella, and it recently took over European groups Enlabs AB and Bet.pt. In 2020, Entain had an annual operating income of £450 million, and it generated £3.6 billion in revenues, which was slightly down from its 2019 figure. Last year, Etain’s online revenues were up 27% year-on-year because of the success of this company’s gaming brands, which managed to grow their revenues by 40%.

Entain will benefit in the second half of 2021 from the Tokyo Olympics and the Euro 2020 spilling over into it for ten days. Its shares rose over 74% this year but dropped 0.7 in volatile trading. Still, many predict that Entain and its subsidiaries should generate decent profits by year’s end as sports leagues everywhere should resume at their regular pace in a somewhat similar form to before the pandemic hit, and given that online gaming is more popular than ever. The company also made it clear that it will soon invest £100 million into immersive tech and develop betting platforms for sectors that Entain’s brands do not dominate.

Entain keeps making moves on the US market

When Danish business executive Jette Nygaard-Andersen took over the CEO position at Entain from Shay Segev in January of 2021, a global pandemic was raging. At that time, the company operated in twenty-seven regulated markets, but according to Nygaard-Andersen, it now has intentions to conquer fifty more territories.

Earlier this month, it solidified this objective by posting that it had come to terms with Seattle start-up Unikrn to acquire this Esports wagering platform, famously backed by celebrities like Ashton Kutcher and Mark Cuban. Nygaard-Andersen and Entain believe that social gaming and Esports betting could easily add $20 billion in the addressable market share over time. The company’s buy-out of Unikrn is only one of its many recent North American moves, as it knows that online gambling in the USA is on the cusp of exploding. Projections claim that the country’s market will keep growing at an annual compound rate of 17.3% until 2026. Over twenty US states have legalised mobile sports betting, and many more territories, such as New York and Ohio are currently exploring this option. Entain is a partner of Las Vegas’ most massive casino operator MGM Resorts.

Speculation again heat up that MGM may take over Entain

In January of this year, MGM Resorts made a £7.9 billion bid to acquire Entain. MGM Resorts, which operates multiple casino brands throughout the US. Including the Bellagio, Mandalay Bay, Park MGM, and MGM Grand in Las Vegas, seeks to emulate its long-time rival Caesars Entertainment, which purchased sports betting giant William Hill in September of 2020 for £2.9 billion. That move came due to the rapid expansion of online sportsbooks in the US, and William Hill, already having the intention and technology necessary to enter this US market section. Thus, it was easier for Caesars Entertainment to buy a finished product than develop its own. The same applied to MGM Resorts. However, Entain rejected its offer at the start of the year.

Now, rumour’s have begun circling that MGM Resorts is ready to up its initial bid by several hundred million. That gossip comes at the heels of MGM Resorts announcing that they had sold off a portion of its real estate assets worth £3.2 billion in cash to VICI Properties, which has now given MGM operational domestic liquidity of £8.4 billion. The news caused Entain’s share price to rise by 6/1% as everyone now expects MGM Resorts to make another purchasing charge to become the world’s premier gaming entertainment company.

About the author

Shelly Schiff has been working in the gambling industry since 2009, mainly on the digital side of things, employed by OnlineUnitedStatesCasinos.com. However, over her eleven-year career, Shelly has provided content for many other top interactive gaming websites. She knows all there is to know about slots and has in-depth knowledge of the most popular table games. Her golden retriever Garry occupies most of her leisure time. Though, when she can, she loves reading Jim Thompson-like crime novels.

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