Entain says it expects its partnership with TAB New Zealand and its recent acquisition of 365scores to drive a combined EBITDA of between £15m and £20m in FY24.
FY25 EBITDA for both deals, Entain added, could fall at approximately £50m, implying a FY25 EBITDA multiple of 5x for both transactions.
Entain’s collaboration with TAB NZ commenced at the start of June and is set to span 25 years. It will see Entain own a newly established operating entity that, as Dean Shannon, CEO of Entain Australia and New Zealand said in a company presentation, will have the management rights for TAB’s New Zealand wagering and media business for the entirety of the agreement.
Shannon said: “Importantly, core to the partnership is our aligned commitment to responsible gaming, sustainability and the New Zealand racing and sports industries. With racing being the dominant wagering product in this part of the world, a strong racing industry is a critical success factor for TAB NZ and Entain.
“The arrangement delivers significant returns to these industries. From day one of the partnership and for its first 5 years, Entain has committed to a minimum annual return of NZ$150m back to TAB NZ.
“These much-needed funds will allow the right investment to be put back into racing immediately, which will benefit all stakeholders in the ecosystem in coming years.”
Shannon added that Entain will look to “reinvigorate” TAB NZ’s technology infrastructure, including sportsbook, trading, anti-money laundering and other operational capabilities. He also said the partnership aims to “win back” much of the offshore revenue in New Zealand.
Separately, Entain acquired global sports app 365scores in April for $150m.
Sameer Deen, chief strategy officer and President, New Ventures at the company, said 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.”
Deen added the 365scores deal could deliver between £15m and £20m of EBITDA in 2024 and that Entain expects 365scores’ EBITDA “to grow by around 50 per cent in 2025.”
Deen concluded that Entain expects “some incremental upside from 365scores ability to collaborate and partner with Entain brands across our portfolio,” promising updates on that front.
