Financial results: Entain suffers significant loss, RSI growth at 17%
Entain reports £936.5m ($1.19bn) loss, but with NGR up, while RSI Q4 growth is at 17%.
Q4 financial results from two significant industry companies are in.
Despite reporting a loss, Entain also reported net gaming revenue of (NGR) of $6.15bn for 2023, up 11% from FY22. On the other hand, Rush Street Interactive (RSI) disclosed its fourth quarter results, with revenue of $193.9m – 17% up from the same period in the previous year.
Entain owns a 50% market share of online betting and gaming brand BetMGM, which generated $1.96bn in 2023. It reported that in Q4, BetMGM itself was up 21%, bringing the total group trading performance up by 12%, down 1% pro forma.
The losses were largely due to a single instance in which fines were paid in a £585m settlement with the UK Crown Prosecution service, following Bribery Act breaches from legacy operations in Turkey.
Entain Chairman Barry Gibson said: “2023 was a period of necessary, but ultimately positive, transition for Entain. We have significantly strengthened the quality of our revenue base, enhanced our board, and delivered a resolution to a critical, historic, regulatory issue.”
Remaining losses may somewhat be attributed to a range of acquisitions made over 2023; however, gross profit remains on the rise year-on-year, up 7% to £2.19bn.
RSI operates as an online gaming and sports entertainment company, largely focused on markets in the US, Canada and Latin America. The 17% revenue increase in Q4 2023 from the previous year was mirrored by a Q4 net loss of $5.5m, compared to a net loss of $31.1m in Q4 of 2022.
Over the course of the whole year, RSI’s revenue for 2023 was $691.2m – again marking a 17% increase from the previous year– while its annual net loss of $60.1m compared to a loss of $134.3m in 2022.
Currently offering real-money mobile and online operations in 15 American states, RSI CEO Richard Schwartz said: “With a substantial cash balance and no debt, our financial wherewithal provides us the luxury of being able to continue executing on our long-term strategy and investing appropriately in new markets.”
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