Entain’s Australian revenue surges, as the bookmaker says it can cope with new point of consumption taxes
The owner of the Ladbrokes and Neds brands had a good first six months of 2022. It wants to win more market share in Australia and might be on the verge of some big deals.
Point of consumption betting taxes in Queensland and NSW will hit the owner of the Ladbrokes and Neds, but London-listed Entain says it has grown to such an extent in Australia it will be able to cope with the impost.
Entain revealed its net gaming revenue in Australia had surged about 19 per cent in the six months to June 30 to a record £213.7m ($304.3m) compared with the previous corresponding period, and its amount of active customers was up 8 per cent.
Australia accounts for about 10 per cent of Entain’s global business in net gaming revenue terms, which includes the Ladbrokes, Coral and bwin brands in the UK and Europe, and online gaming brands like CasinoClub and Foxy Bingo.
Entain is keen to grow its market share in Australia, where it is run by Queensland-based Dean Shannon, and is likely to bid for the Western Australian wagering licence that is up for sale with a $1bn-plus price tag.
It could also return to bid for Tabcorp, having been rebuffed last year when it lobbed a $3.5bn offer for Tabcorp’s wagering and media arms.
Tabcorp subsequently spun off its lotteries division into a new ASX-listed business.
“The wagering industry in this country, at some point consolidation makes sense, and we think a merger with Tabcorp and Entain makes terrific logic,” Vidhur Rangaswamy of Tanarra Capital, a Tabcorp shareholder, recently told The Australian.
In a statement released with its financial results on Thursday afternoon in Australia, Entain said: “Our Australian business continues to go from strength to strength with excellent performances from both the Ladbrokes and Neds brands throughout the … half.”
Management did acknowledge it would be hit by the new point of consumption taxes, with NSW and Queensland recently raising the levy on corporate bookmarkers like Ladbrokes and Neds.
“(But) given the scale and strength of our business in Australia, we are confident in our ability to mitigate a proportion of the … impact,” Entain said.
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