Entain Returns to Growth in UK & Ireland

Entain is back on the growth track.

After three years of declining revenue in the UK & Ireland (UK&I), Entain has finally reversed the trend, posting its first market growth since 2021.

With a strong Q4 performance, strategic improvements, and the ability to weather upcoming UK regulatory changes better than competitors, the operator is positioning itself for further expansion.

As regulatory headwinds tighten around smaller operators, Entain is poised to capitalize and strengthen its foothold in the region.

Entain Rebounds in UK & Ireland, Eyes Market Share Gains from Regulatory Shifts

Key Points:

1. Entain Returns to Growth in the UK & Ireland

   • Revenue in the region increased by 0.2% year-on-year, driven by 13% growth in Q4 and rising player engagement.

2. Upcoming UK Regulations Expected to Benefit Entain

   • New slot stake limits and compliance measures may challenge smaller operators, providing Entain an opportunity to capture market share.

3. Strong International Performance Fuels Overall Expansion

   • Markets like Brazil (41% growth), CEE (12%), and BetMGM in the US ($2.1B revenue) further solidify Entain’s global standing.

Entain’s UK & Ireland Business Sees Turnaround in 2024

Entain’s 2024 financial results highlight a crucial milestone—a return to growth in the UK & Ireland, its core market.

The operator reversed declining revenues in the region, largely driven by double-digit growth in Q4 (13%), improved player engagement, and strategic product enhancements.

Overall, UK&I net gaming revenue (NGR) rose 0.2% year-on-year to £2.05 billion. Online revenue grew 2.1% to £984.6 million, with active customers increasing by 11%.

Retail Performance:

• Retail revenue declined by 1.3% to £1.07 billion.
• However, H2 saw a 2% increase, thanks to strong sports margins and the completion of the Kascada gaming cabinets rollout.

Interim CEO Stella David commented on the rebound:
“One year ago, we faced tough challenges. Today, we are seeing positive results, returning to organic growth with both NGR and EBITDA.”

CFO Rob Wood emphasized that resolving customer journey frictions helped fuel the turnaround, positioning Entain for continued growth in 2025.

“The UK market is now back to a growth trajectory, and we expect this to continue into H1 2025.”

Regulatory Changes Could Strengthen Entain’s Position

With upcoming UK gambling regulations—including online slot stake limits set for April and May—Entain believes it will weather the impact better than smaller competitors.

• How Regulations May Benefit Entain:
• Smaller operators that rely on high-value players will be more affected.
• Stricter compliance rules may push players toward established brands like Entain.
• A superior product experience could drive customer migration from tier 2 and tier 3 operators.

David noted during the earnings call:
“With new limits in place, some customers will leave smaller platforms for a better gaming experience—this could be a tailwind for us.”

Wood also highlighted that Entain had already absorbed past UK regulatory changes faster than expected, further strengthening its market outlook.

Entain’s International Growth Bolsters Global Expansion

Beyond the UK, Entain’s international operations continue to thrive, with NGR up 10% year-on-year in key markets:

• CEE (Central & Eastern Europe) – Revenue surged 12%.
• Australia – NGR remained stable at 1% growth.
• Brazil – Revenue skyrocketed 41%, with active players increasing 42%.
• BetMGM (US Joint Venture with MGM) – Net revenue reached $2.1 billion, up 7% YoY.

Why Brazil is Key:

• Entain secured an early license, giving it a first-mover advantage.
• Instant payment withdrawals introduced in Q4 further boosted player engagement.

“Our expansion strategy in Brazil is already paying off, and we see major potential for long-term growth,” said Wood.

New CEO Search Continues as David Steers the Ship

Following Gavin Isaacs’ abrupt departure in February, Entain is still searching for a permanent CEO.

David remains focused on maintaining momentum, stating:

“I’m here as long as it takes to ensure continuity and build on our strong performance.”

Entain has prioritized operational stability while finding the right long-term leadership fit.

A Strong Comeback with Market Expansion on the Horizon

Entain’s UK & Ireland segment has made an early return to growth, bolstered by strategic improvements, increased player engagement, and a recovering market.

The company’s ability to absorb regulatory changes positions it for further market share gains, as smaller competitors struggle with compliance.

Internationally, Entain’s strong performance in key markets like Brazil, CEE, and the US ensures continued revenue expansion.

With a new CEO yet to be named, Entain’s leadership remains in transition, but its growth trajectory is clear.

As regulatory landscapes evolve, Entain appears well-positioned to capitalize on industry shifts and strengthen its global dominance.