12th Aug 2021 20:01
(Alliance News) - Entain PLC on Thursday tipped its addressable market to grow over threefold, with the Ladbrokes owner eyeing US "leadership" and as well as a foray into the fast-growing esports space.
The gambling firm said its total addressable market will surge to more than treble to around USD160 billion, as it looks for growth in new categories - including the burgeoning US betting industry - and sharpens its focus in existing markets.
Notably, the company announced plans to "extend into new interactive entertainment experiences". Entain has agreed a deal to acquire Unikrn, an esports and betting firm.
"Esports is a rapidly growing market and, with over 450 million viewers, it is now established as a mainstream sport, particularly amongst the 18-35 demographic. Skill-based wagering for casual esports gamers is emerging, but existing operators lack scale providing Entain with a clear opportunity in a new area related to our core expertise," the company said.
"The worlds of media, entertainment and gaming are converging. Customers want a richer experience, including more content, interactive experiences, new and free to play games, as well as social content."
Its move to esports and social casino-related industries can see it access a market worth over USD20 billion, Entain said.
It has hired Justin Dellario as its new head of esports, joining with live streaming platform Twitch, a popular outlet among gamers.
Entain is also after "leadership in the US", a sports betting market which it says could be worth USD32 billion in the long term, from USD6 billion today.
"We are making significant progress in the growing US sports betting and iGaming market. BetMGM is firmly established as the number two operator in the market and is targeting a long-term market share of 20% to 25% of the North American online market," Entain explained.
The FTSE 100 firm also plans to grow in its "core markets".
"We are licenced in 27 countries today as well as operating in a number that are in the process of regulating. We have leadership positions in a significant number of these with an average market share currently of around 13% to 15%. We have a strong track record of driving organic growth and our markets have in-built growth as online betting and gaming extends its appeal and scale. We estimate these markets to be worth around USD40 billion today and expect them to grow to around USD70 billion over the long term," the company said.
Finally, its eyes expansion "into new regulated markets", another one of its "four key growth opportunities".
Entain said there are over 50 regulated markets across the globe it does not operate in. Combined, these markets could be worth USD40 billion in the long-term.
Earlier on Thursday, the company reported a strong first-half as revenue and earnings were lifted by a pandemic-induced boom in online betting.
Entain enjoyed continued momentum across its brands, it said, with revenue for the six months to June 30 up 12% to GBP1.77 billion from GBP1.58 billion last year.
Pretax profit was GBP130.6 million, almost triple GBP45.1 million a year previously.
Despite the strong results, Entain did not propose an interim dividend but said it expects that by the time it reports its full-year results in March, it will be in a position to recommence payouts.
By Will Paige; [email protected]; updated by Eric Cunha; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Entain