Entain PLC (LSE:ENT) expects its recent acquisitions of TAB New Zealand and 365scores to boost EBITDA by £50mln by 2025.
The owner of Ladbrokes and Coral updated investors following presentations from Entain's senior management regarding the two recently acquired companies.
In a statement, Entain said these opportunities are expected to deliver a combined EBITDA of around £15-20mln in financial year 2024 and around £50mln in financial 2025 for the group, implying a 2025 EBITDA multiple of 5x for both transactions.
Entain added it sees a significant opportunity to enhance the offering and improve engagement for New Zealand customers and grow the online sports betting market from the TAB NZ deal with the New Zeland betting market of approximately NZ$600mln today, expected to grow by c.35% over five years.
At 365scores, Entain sees an opportunity to drive further growth both directly, as well as more widely for Entain's brands through enriched data and marketing analytics.
Shares in Entain rose 1.3% to 1,296p.