FL Entertainment Reports Strong H1 2022 Results

FL Entertainment, the freshly created special purpose acquisition company (SPAC), released its financial results covering the first half of 2022.

FL Entertainment Reports Increase in Revenue and Adjusted EBITDA

The company said last week, that its revenue for the first six months ended June 30, 2022, hit €1.80 billion ($1.77 billion). When compared to the €1.51 billion ($1.47 billion) reported for the same period in 2021, this resulted marked a strong 18.9% increase. Not unexpectedly, adjusted EBITDA for the period increased as well. Overall, adjusted EBITDA in H1 this year hit €300.7 million ($293 million), up 16% when compared to the €259.3 million ($253 million) reported in H1 last year. This represented an adjusted EBITDA margin of 16.7%. Similarly, adjusted net income for the period increased. In H1, 2022, the adjusted net income reported by FL Entertainment hit €139 million ($135.5 million). When compared to the €129 million ($125.8 million) reported for the same period in 2021, an increase of 8% is observed.

According to FL Entertainment, content production and distribution helped boost the growth for the first half of this year. In the first six months of 2022, the company reported an increase in content production and distribution of 27% to €1.4 billion ($1.36 billion). The company explained that this was the result of a strong recovery from the COVID-19 pandemic which impacted the results last year.

Sports Betting and Casino Revenue Dips Slightly

Despite the revenue growth, the company’s net income in H1 dipped. For the first half of 2022, FL Entertainment’s net income was negative €18.2 million ($17.7 million) versus €24.2 million ($23.6 million) reported for H1, 2021. FL Entertainment explained that the decline in revenue was the result of the “one-off impact from the Group re-organization and listing transaction.” But it’s not only the net revenue that marked a decrease. A breakdown provided by FL Entertainment reveals that its revenue from sports betting and online gaming operations decreased by 3% in H1, 2022 to €396.6 million ($386.6 million). A further breakdown shows that the highest decline was observed in the revenue from casino operations that halted at €46.5 million ($45.3 million) in H1, 2022, marking a 7% decrease when compared to H1 last year. Less significant was the decrease in sportsbook revenue which dipped by 3.5% to €322.3 million ($314.2 million) when compared to H1, 2021. On the bright side, FL Entertainment’s poker revenue in H1 this year increased by 7.1% to €23.2 million ($22.6 million).

The Company Enjoys a Positive Momentum

François Riahi, FL Entertainment’s CEO, acknowledged that the results from the first half of 2022 represent strong growth in terms of EBITDA as well as revenue. He added that although the sports calendar wasn’t packed, the company’s sports betting and online gaming operations performed well while at the same time attracted new players.

“FL Entertainment’s listing in July 2022 is the start of a new chapter for our business and we are delighted to begin life as a publicly-traded company with such strong momentum.“

François Riahi, CEO of FL Entertainment

It was back in July when FL Entertainment went public. Now, according to Riahi, the listing marked a “new chapter” for the business and its growth. He explained that being publicly traded brings excitement for the company that continues to grow further into the growing iGaming industry. In conclusion, Riahi said that the company is positioned well to continue to expand its footprint and deliver growth.