Sports betting and gaming group Entain has provided more details on its strategic decisions regarding its recent partnership with TAB New Zealand and its acquisition of 365scores.
Entain said that these two M&A deals are expected to deliver a combined EBITDA of approximately £15 to £20 million ($18 to $25.1 million) in the 2024 financial year and an EBITDA of £50 million ($62.8 million) in 2025.
In March, the company announced it had been selected by TAB New Zealand as its preferred partner for a 25-year strategic arrangement. The deal will see Entain help to facilitate Tab NZ’s betting and broadcasting activities in New Zealand. The partnership commenced on 1 June 2023.
Meanwhile, last month Entain acquired the entire issued share capital of sports media business 365scores for a consideration of $150 million and contingent payments totaling up to $10 million.
We’re past the halfway mark this year and our journey as a world leader in betting, gaming and interactive entertainment is just about to get even more exciting! 🤯
Introducing the latest additions to the Entain family, @365Scores and @TAB_Racing! 🎉https://t.co/Jsq3eG8vk7
— Entain (@EntainGroup) June 8, 2023
Dean Shannon, CEO of Entain Australia and New Zealand, detailed how well-positioned Tab NZ and Entain are to take on this partnership: “Tab NZ is uniquely positioned in New Zealand, with the only wagering license and is the only operator of retail wagering.”
“This partnership provides unrestricted access into the regulated New Zealand market, which has revenue of approximately NZD 600 million ($367.5 million) and significant growth potential. This compelling partnership combines expertise and capabilities from both Tab NZ and Entain,” he added.
The CEO further highlighted New Zealand’s betting market, saying that it could see underlying growth of close to 35% in the next five years. This would amount to a market valuation of NZD800 million ($490.09 million).
Shannon shared that Entain had committed to a “minimum annual return of NZD 150 million ($188.6 million) back to Tab NZ.” This return is set to take place within the first five years of the deal. He also noted that the company’s suite of Australian safer gambling tools, Punter Assist, will be integrated into Tab NZ’s platform.
“The strategic partnership between Entain Australia and Tab NZ represents a compelling opportunity for growth and value creation. Together, we will deliver a superior betting and gaming experience to customers in New Zealand while also benefiting from the strengths and opportunities this partnership presents,” the CEO commented.
Dean Shannon, CEO of Entain Australia and New Zealand
Meanwhile, Sameer Deen, Chief Strategy Officer and President of New Ventures at Entain, said that the 365scores acquisition would bring about positive engagement. “They are keen sports fans, so their frequency of visit is extremely high, with returning app users on average using the 365scores app around 100 times per month,” Deen noted. “This is well above industry standards and compares to traditional betting app averages of around five times a month.”
The executive added that 365scores’ audience is present in several regulated markets, including Mexico and Colombia, and in to-be-regulated markets, such as Brazil. He said that this would be beneficial to Entain’s current Brazilian operations.
“365scores’ leading position in LatAm will be highly complementary to our current operation in Brazil, supporting our growth ambitions in a priority market for us with a clear path to regulation, as well as in other already regulated markets in the LatAm region,” the executive noted.
