Entain Q2 revenue climbs 18% as retail return offsets online dip

  Entain’s total online net gambling revenue (NGR) slumped by 7% year-on-year (YoY) during the second quarter of 2022 thanks to “tough comparators” arising from the increase in online gambling during the Covid-19 pandemic. Delivering its latest trading update, the London-listed company pointed to 2021’s Covid-19 lockdowns and the shuttering of its business in the Netherlands as key influencers in the stagnation of figures. In addition, the firm cited the twin factors of tighter affordability measures affecting its UK operations as well as a “weaker macro-economic environment” reducing customers rate of spend and moderating online growth versus its previous expectations. Within the online division, sports betting NGR dropped 6% YoY, or a 9% fall on a constant currency (cc) basis. NGR arising from the firm’s igaming operations slid 7% over the Q2 period, a slump of 9% on a cc basis. At a group level, Entain’s total group NGR rose by 8% YoY, thanks in part to a 79% YoY increase in retail NGR following the return of the sports calendar and consequently its retail betting shops. Entain has also pointed to a record level of active customers during Q2, up 60% versus the same period in 2019 (pre-Covid), as well as positive momentum that has seen Q2 NGR grow beyond that generated in Q1.

In respect of H1, Entain’s total group NGR rose 18% YoY with similar single-digit percentage slumps in its total online gambling NGR over the period. Total online NGR fell 7% YoY during H1, or 7% on a cc basis, with sports and igaming NGR dropping by 6% (cc 6%) and 9% (cc 9%) respectively during the period. As with the Q2 results, retail delivered the biggest result for Entain during H1, with retail NGR rising 243% (cc 244%) on the same period in 2021. The company also pointed to continued growth in the US, where its JV partner BetMGM has established itself as the number two operator in the states in which it operates, garnering 24% of the overall market share and a market leading 29% igaming market share. Despite the slump in online, Entain CEO Jette Nygaard-Andersen remained upbeat, highlighting the operator’s focus on recreational players and customer welfare. “Our leadership in responsibility and sustainability has seen us implement further player safety measures alongside ARC, particularly in the UK, as well as respond to regulatory changes as markets implement regulation,” Nygaard-Andersen explained. “The macro-economic outlook is uncertain, however the underlying performance of our business remains strong. With an increasingly recreational customer base and relatively resilient revenue, we remain confident that our customer focus, diversification and proven ability to grow both organically and through M&A will enable us to deliver further progress against our strategy. “We continue to expand our growth opportunities through complementary acquisitions with four transactions so far this year. Underpinned by the Entain Platform, BetMGM continues to demonstrate its leadership in the US with a 24% market share,” Nygaard-Andersen added. Providing an update on its US-based BetMGM business, Entain confirmed a 24% US market share overall, rising to 29% in igaming in isolation. Suggesting the business was performing strongly, Entain has said the BetMGM business is on track for a full year NGR of over $1.3bn (£1.09bn). At the time of publishing, Entain’s share price had dipped 4.2% from an opening price of 1,101.50p to 1,090p.