Entain has issued its latest trading update covering the period from April 1 through June 30, 2022. The company has also summed up the results from the first half-year or H1, covering the period from January 1 through June 30, 2022. The report highlights a snipper of the current group’s net gaming revenue and how it has progressed over the second quarter and the first half of the financial year.
Entain’s Online Gaming Revenue Subdues in 2022
Entain said that its net gaming revenue went up 18% in H1 compared to up 8% in the second quarter. Online net gaming revenue was surprisingly down in H1 by 7% with the same downturn reported in the second quarter, and Entain’s second-quarter online net gaming revenue dropped 7%.
Performance has been clearly impacted by the ongoing struggles in certain markets due to COVID-19 and the closure of the Netherlands prior to the market legalization. However, the report assured that the underlying performance remained strong. The customer base continued to grow in the second growth with consumers participating in more activities over the period. Entain’s CEO, Jette Nygaard-Andersen, said:
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 strategyEntain’s CEO, Jette Nygaard-Andersen
Entain expects that the overall online net gaming revenue will be flat based on the current outlook on the results, and the potential impacts of the UK Gambling Act Review the company said. Retail continued to perform well in the second quarter, Entain said, despite a much grimmer outlook for the sector.
The good results in retail were bolstered by self-service betting terminals and gaming. BetCity’s acquisition is still on track and it will be completed in the second half of the year. The H2 acquisition should give Entain a significant boost in the Dutch market which it had to withdraw from briefly before relaunching. Meanwhile, BetMGM continues to be a strong driver of revenue and performance for the group.
BetMGM Tops Performance Metrics
Presently, BetMGM controls 24% of the market share in the United States when it comes to sports betting. The company is also in control of 29% of the market share in the United States through its iGaming and online casino operations.
Some positive developments over the surveyed period included the partnership between Carnival Corporation and BetMGM and the partnership with Sony Pictures and IGT for the Wheel of Fortune branded gaming experience.
Entain expects to reach positive EBITDA in 2023 and it’s on track to generate $1.3 billion in revenue for the financial year in 2022 in terms of net gaming revenue. Meanwhile, Entain is committed to upholding its ESG practices and has received GamCare’s Advanced Safer Gambling Standard.