In a trading update, Entain reported that retail revenue for the six months to 30 June had increased by 243% year-on-year. This growth exceeded expectations and was attributed to the easing of Covid-19 restrictions, allowing retail operations to return to near normal.
During the first half of the previous year, retail shops faced closures and operating restrictions due to Covid-19 rules. This resulted in limited customer gambling. However, Entain noted that the strong increase in online gambling during the same period in 2021, prompted by the partial closure of retail, led to a 7% decline in online revenue year-on-year. Online gaming revenue decreased by 9%, while online sports betting revenue was down by 6%. Wagers also decreased by 3% compared to the previous year. Entain attributed this decline to a weaker macroeconomic environment, which resulted in reduced customer spending rates.
Based on the current outlook, Entain expects full-year online revenue to remain flat. However, its joint venture with MGM Resorts, BetMGM, is anticipated to exceed $1.3 billion in revenue for the year, performing strongly and in line with expectations.
In the second quarter, total group revenue rose by 8% year-on-year, driven by a significant 79% increase in retail revenue. Online revenue for the same period declined by 7%, with online casino revenue down by 7% and online sports betting revenue dropping by 6%. However, sports wagers saw a marginal increase of 1%.
Entain’s Chief Executive, Jette Nygaard-Andersen, expressed satisfaction with the increasing number of customers choosing to play with the company. She emphasized Entain’s focus on recreational players and customer-centricity as key drivers of this positive trend. The company also highlighted its growth opportunities through strategic acquisitions, with four transactions completed so far this year.
Despite uncertain macroeconomic conditions, Entain remains confident in its strong underlying business performance, driven by a recreational customer base and comparatively resilient revenue. The company believes that its customer focus, diversification, and ability to grow organically and through mergers and acquisitions will contribute to further progress in line with its strategy.
Entain expects its recently announced acquisition of BetCity, a Dutch online sports betting and gaming operator, to be completed in the second half of this year. The company views this acquisition as a strategic growth opportunity in the regulated Dutch market. BetCity is being acquired from Sports Entertainment Media.
