FL Entertainment, a media and gaming conglomerate, has lauded the performance of its Betclic Everest division in 2022, describing it as an “exceptional” financial year for the group.
FL Entertainment stated that Betclic witnessed “robust” growth in 2022. FL Entertainment is the new moniker for the combined enterprise that was established through a union with special purpose acquisition company Pegasus Entrepreneurial Acquisition Company Europe, which went public in July 2022.
The merger agreement encompassed all Betclic Everest subsidiaries, including Bet-at-home, as well as television production business Banijay. Banijay initially merged with Betclic to create FL Entertainment, which subsequently merged with Pegasus.
In assessing the initial six months of the combined business, FL Entertainment CEO Francois Riahi commended the online sports wagering and gaming division, characterizing its revenue as “very strong” despite a high benchmark compared to 2021.
Riahi remarked: “2022 was an exceptional year for FL Entertainment. As a whole, we accomplished strong performance in alignment with our guidance, made rapid progress on the strategy outlined at the time of listing, and fortified our financial position.”
Betclic, a prominent sports wagering firm, has witnessed a substantial rise in active participants, escalating by 25% annually. This expansion is credited to their robust commercial performance during the recent global football championship, which was staged in Qatar during the winter season.
Betclic reigns supreme as the most downloaded sports betting application in France, Poland, and Portugal, and holds the second position in Europe. This achievement is attributed to their state-of-the-art technological platform, renowned for its dependability and effectiveness.
The company intends to capitalize on this surge in player numbers to propel sustained organic expansion in the future.
Over the preceding year, Betclic’s income from online sports wagering and gaming operations surged by 12.8% to €835 million. This growth was fueled by a robust final quarter, bolstered by the global football championship, which significantly contributed to both betting volume and new player acquisition.
Betclic’s sports wagering income expanded by 13.8% for the entire year, driven by the increase in unique active participants. Online casino revenue also experienced growth, propelled by gamification and the launch of new games. Online poker revenue also witnessed positive growth.
Bet-at-home is enduring a challenging period, despite some expansion in its operations. In September, Bet-at-home issued a notice that its fiscal year would be significantly affected due to its departure from the Austrian marketplace. They expressed worry that they might not have sufficient liquid assets to fulfill their financial responsibilities.
This notice followed the company’s substantial reduction of its operations in various regions, particularly Austria. In October 2021, the company lost a legal battle against an Austrian player’s association who demanded compensation for unauthorized operators. Subsequently, Bet-at-home declared its withdrawal from the market and shut down its Maltese subsidiary.
In July 2022, Bet-at-home “discontinued” its UK permit and announced its permanent exit from the market. This followed the suspension of the operator’s license by the UK Gambling Commission due to alleged anti-money laundering and social responsibility shortcomings.
Examining the broader FL Entertainment business, which encompasses content production and distribution, revenue increased by 15.7% in 2022, reaching €4.05 billion. Content production and distribution revenue grew by 16.5% in the year, reaching €3.21 billion.
Elevated spending in multiple areas resulted in a €4.2 million pre-tax loss for the group, but this was an improvement compared to the €24.2 million loss in 2021.
FL Entertainment paid €76.9 million in revenue tax, resulting in a net deficit of €81.1 million, contrasted with €73.4 million in the corresponding period last year.
However, FL Entertainment highlighted that excluding particular costs, including €127.4 million in reorganization expenditures and €147.5 million in long-term incentive programs and profit and option expenses tied to employment, while incorporating €112.9 million in other financial income, net profit was €306.7 million, a rise of 8.5% year-over-year.
“FL Entertainment’s inaugural annual results show the strength of our business structure,” said Riahi. “We are well-prepared to solidify our leadership in structurally expanding markets in 2023 and continue to display our capability to achieve profitable growth on a large scale.”
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