That’s Entainment: Ladbrokes Owner Entain Posts Positive 2020 Report
Ladbrokes Coral and BetMGM owner Entain, rebranded last year from GVC Holdings, has released its 2020 earnings report – and it looks good for the British conglomerate.
Entain saw company-wide profits rise to £530 million ($728,137,850) during 2020, up 2% on the previous year’s figure.
Total revenue increased by even more. In what was one of the world’s highest-operating incomes for a gambling company over that time, Entain’s total revenue for the year was £2.7 billion ($3.7 billion).
Total retail bet volumes fell by nearly 40% (from £4.8 billion ($6.592 billion) to £2.8 billion ($3.845 billion) as the COVID-19 pandemic shuttered all its UK stores for many months. A considerable number of physical sports betting facilities in the US were also closed for long periods.
However, online sports bets were up across the board – totaling £11.8 billion ($16.206 billion) over the year.
Up to 75% of the company’s revenue for the year was fully online. This shows just how much the pandemic has affected physical business locations.
Diversified Business Model
“It is a great testament to the quality of our people and the strength of our business model that the group’s growth continued during 2020, despite the COVID-19-related sporting cancellations and retail closures that were necessary at times during the year” Entain Chairman Barry Gibson told UK Investor Magazine last week.
“We have long talked about the importance of having a truly diversified business model and of not being overly reliant on any one product, brand, territory, or channel, and it was this approach that mitigated the impacts of the pandemic on our business so effectively” he finished.
But it’s not just Entain’s revenue streams that are diversified this year. The company also published a gender pay gap report for 2020.
Calling itself the most inclusive employer in the gambling industry, Entain has a 7.1% average hourly pay gap between women and men in similar or exactly the same roles.
That might sound high, but the UK average for a 100+ person company is 15%, which shows Entain is backing up its words on this subject.
“Our Best Work”
In addition to more equal pay, Entain has a 50/50 male-to-female employee ratio across its Ladbrokes brand. It also ran a female leadership mentoring program called Horizon: Senior Women in Leadership Programme, with some of the most successful women in the gambling arena onboard.
“Our ambition is to make sure Everyone’s In The Game meaning everyone here at Entain feels valued, respected and included” said Entain’s female CEO Jette Nygaard-Andersen.
“Inclusion is embedded in everything we do because we know when we feel respected and heard, we do our best work. We’ve made some clear progress, and we hold the number one spot on Inclusion in our industry, but we know we can do better”Nygard-Andersen
Despite all the good news, Entain’s share price was down a little last Wednesday (about 1%), but investors remain bullish about their prospects for the future.
Since rebranding from GVC Holdings, Entain has been aggressively focusing on the growing legal US betting markets – a share it hopes to grow to $20 billion in value over the next five years.
Although shareholder dividends were delayed for this year, the company promised it was “committed to returning dividends once the uncertainty caused by COVID-19 subsides.”
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