Global sports betting, gaming and interactive entertainment group Entain released today a trading update for the first quarter of 2022, reporting strong revenue growth.
Retail Nearly Back to Pre-Pandemic Levels
For the three months from January 1 till March 31, Entain registered 31% growth in net gaming revenue driven mainly by the return of Retail which more than offset the decrease in online operations due to strong 2021 comparators.
As expected, net gaming revenue from retail operations for the quarter registered a strong increase year-over-year, driven by volumes reaching within 5%-10% of the pre-pandemic levels and the low comparators due to the closures in the previous year.
“We have started the year with a good performance across all areas of our business, driven as ever by the strength of our industry-leading platform. We have delivered strong performances in all of our major markets, and I am pleased to report that Retail is performing well with customers returning for our instore experience.”Jette Nygaard-Andersen, CEO, Entain
Net gaming revenue from online operations fell by 8% as compared to the respective three-month period in 2021 despite the continued momentum in all major markets, mainly due to the very strong comparators in the previous year.
BetMGM Going from Strength to Strength
Entain’s co-owned BetMGM brand continued to gather strength and affirmed itself as the number two operator across all markets it is active, holding a 24% market share. In the online casino vertical, BetMGM is the consistently the leading operator with a 29% market share.
“In the US, BetMGM is firmly established as the number two operator, and our market launches during Q1 mean that we now have access to over 41% of the US adult population.”Jette Nygaard-Andersen, CEO, Entain
The brand is now live in 23 markets, having added four new in the quarter and Ontario in April and is firmly on track to reach positive EBITDA in 2023. Entain will provide a BetMGM trading update on May 12.
Acquisitions in Canada, Poland and Latvia
Elsewhere, the quarter saw Entain acquire Avid Gaming to strengthen its presence in Canada by combining Sports Interaction with its existing Canadian business, Party and bwin.
Entain also acquired Totolotek Poland from Merkur Sportwetten GmbH to secure a licensing in Poland and Latvian operator Klondaika as both deals are seen as supportive for the Enlabs Baltic market’s unit.
As the business continues to grow with a focus on its customers, Entain continues to invest “to provide them with the best experiences while also capturing the many opportunities ahead,” Nygaard-Andersen outlined.
Entain’s CEO expressed her confidence in the company’s “financial performance for the financial year 2022 and beyond,” due to the “strength and continuing momentum” of its underlying business coupled with its “proven ability to grow both organically and through M&A.”