FL Entertainment, the newly formed entity resulting from the amalgamation of European operations with SPAC Pegasus Entrepreneurs, announced that its Betclic division had a highly successful year in 2022.
The company, which debuted on the stock market in July 2022, revealed impressive financial outcomes for its Betclic Everest branch.
The merger encompassed all Betclic Everest subsidiaries, including Bet-at-home, and the television production firm Banijay. Banijay initially merged with Betclic to form FL Entertainment, which subsequently combined with Pegasus.
FL Entertainment’s chief executive, François Riahi, assessed the first half-year of the combined enterprise, commending the online sports wagering and gaming division. He noted that their income was exceptionally robust, despite being compared to a very high benchmark from 2021.
“2022 was an outstanding year for FL Entertainment,” Riahi stated. “As a collective, we performed exceptionally well and achieved our targets. We made significant strides in executing our strategic blueprints and fortified our financial standing.”
The overall number of active participants has risen by 25%, in part due to our robust commercial performance during the global football tournament.
Betclic became the most downloaded sports wagering application in key markets such as France, Poland, and Portugal, and ranked second in Europe, thanks to our cutting-edge technology platform renowned for its dependability and effectiveness.
Looking forward, we will leverage this growth in players to propel continued organic expansion at a rapid pace.
Sports wagering and gaming
Focusing on online sports wagering and gaming operations, income for the 12 months concluding December 31 was €835 million (£733 million/$890 million), up 12.8% from €741 million in the preceding year.
FL Entertainment stated the growth was fueled by a strong final quarter, boosted by activity surrounding the 2022 FIFA World Cup, which was shifted from its traditional summer dates to winter due to the warm weather in the host nation Qatar. The World Cup accounted for 7.5% of the Betclic group’s annual sports wagering turnover and 31.0% of its annual sports wagering new active participants.
By segment, including Bet-at-home, sports wagering revenue increased 13.8% for the entire year to €670.1 million, driven by a 25.0% surge in active users.
Online casino revenue grew slightly by 2.7% to €104.8 million, driven by increased gamification and the introduction of new exclusive games. Online poker revenue also increased by 13.1% to €49 million.
The firms earnings climbed by 15.7% to €4.05 billion in 2022, fueled by expansion in its content creation and distribution segment. The content creation and distribution segment witnessed a 16.5% jump in earnings to €3.21 billion.
The company’s overall performance was influenced by elevated spending in various areas, leading to a pre-tax deficit of €4.2 million, a betterment from the €24.2 million deficit in 2021.
The company’s wagering business encountered hurdles in the past year, despite experiencing growth. In September, the firm issued a caution that it might not possess sufficient liquidity to fulfill its financial commitments as they become due, following a challenging fiscal year that was significantly impacted by its departure from Austria.
This caution followed the company’s substantial reduction in its operations in other regions, particularly Austria.
In October 2021, the company lost a legal battle against a group of Austrian players who sought compensation for unlicensed operators. Following this, the company declared its withdrawal from the market and shut down its Malta-based entity.
In July 2022, the company “abandoned” its UK license and declared its permanent withdrawal 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.
FL Entertainment paid a sum of €76.9 million in income tax, leading to a net deficit of €81.1 million, in contrast to €73.4 million in the previous year.
Nevertheless, FL Entertainment underscores that excluding specific expenditures, including €127.4 million in restructuring charges and €147.5 million in long-term incentive programs and personnel-related profit and option expenses, as well as €112.9 million in other financial earnings, the company achieved a net gain of €306.7 million, representing an 8.5% year-over-year increase.
“FL Entertainment’s performance in its inaugural year showcases the strength of our business model,” stated Riahi. “We are strategically positioned to solidify our leadership in structurally expanding markets in 2023 and continue to exhibit our capacity to scale profitable growth.”
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