21st Jan 2021 08:29
(Alliance News) - Entain PLC on Thursday said it registered fourth-quarter revenue growth, a promising end to a year hit by Covid-19, which battered the sporting calendar.
In addition, the company named independent director Jette Nygaard-Andersen as its new chief executive, the Ladbrokes Coral owner's first female CEO and also the first female CEO of any major London-listed bookmaker.
In the fourth quarter of 2020, group net gaming revenue climbed 7% annually, shaking off closures of its retail estate in the UK and Europe.
The 7% climb came amid bumper online growth. Total online net gaming revenue jumped 41% year-on-year in the fourth quarter, as Entain notched its 20th consecutive quarter of online growth.
High street betting shops continued to suffer, however. UK retail like-for-likes fell 38%, while retail net gaming revenue in Europe plunged 57%. The retail arm has continued to be hurt by Covid-19 restrictions, with England entering a third nationwide lockdown earlier in January and shuttering non-essential stores.
For the whole of 2020, net gaming revenue grew 1% at constant currency, helped by a 28% constant currency online climb and despite a 36% drop in UK retail like-for-likes.
Entain said it was a "strong performance" during a year in which the Covid-19 pandemic cancelled sporting events across the globe, therefore shutting off important revenue streams for bookmakers.
For the full-year, Entain expects earnings before interest, tax, depreciation and amortisation in a range of GBP825 million to GBP845 million, in line with its earnings guidance earlier in January. Entain, back when it was called GVC Holdings, reported underlying Ebitda of GBP761.1 million in 2019.
"In an exceptionally challenging year, our strong performance has been driven by a business model that is highly diversified across a wide range of products, brands, territories and channels. Q4 has been another successful period for us, and we are particularly pleased with the momentum that we are seeing in the US. BetMGM continues to go from strength to strength and is now live in 11 states, plus Michigan will be launching online tomorrow," outgoing CEO Shay Segev said.
The BetMGM joint-venture with former suitor MGM Resorts International has grown in strength and is now live in 11 US states.
MGM on Tuesday had said it will not be making a firm takeover offer for Entain, following a possible GBP8.1 billion bid made at the start of January. Entain previously had rejected the MGM approach, saying it "significantly undervalues the company and its prospects".
In a separate release Thursday, Entain said it has appointed Nygaard-Andersen, currently an independent non-executive director, as CEO with immediate effect. Segev will step down as a director and will remain available until July 8 to facilitate a smooth handover. He is set to become co-CEO of sports streaming platform DAZN.
Nygaard-Andersen - who has more than 20 years' experience in leadership and operational roles in media, entertainment, sport and digital businesses - will be the first woman to run a listed UK gambling group. Sky News had first reported last week that Entain was in talks with Nygaard-Andersen for the position.
Nygaard-Andersen was appointed to the board of what was then known as GVC Holdings at the end of 2019, having spent more than 15 years in senior roles at entertainment firm Modern Times Group AB, which operates in Scandinavia and central Europe.
Entain promoted Chief Financial Officer Rob Wood to the additional role of deputy CEO, while Chief Operating Officer Sandeep Tiku will join the Entain board later in the year.
"I am very excited to have the opportunity of continuing the extraordinary momentum that Entain has in its existing markets, as well as helping it enter new regulated markets and reach new audiences," said Nygaard-Andersen.
Also in January, Entain made a takeover bid of its own- worth SEK2.80 billion, about GBP245.5 million - for Swedish bookmaker Enlabs AB.
On Tuesday, a Texas-based hedge fund said it does not support Entain's SEK40 per share offer.
Alta Fox Capital Management LLC said: "This offer materially undervalues the company, represents a negligible premium of 1.1% to the pre-offer trading price, and has unusual circumstances that make us question why Enlabs Chair Niklas Braathen, accepted such an inadequate offer."
Entain shares were 0.1% higher at 1,271.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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