The gambling revenue of Entain saw a significant increase of 18 percent in the first half of 2022, compared to the same period in the previous year. This notable growth can be attributed primarily to the relaxation of COVID-19 restrictions, which facilitated the reopening of physical betting establishments.
In a recent trading report, Entain revealed that retail revenue surged by a remarkable 243 percent on a year-over-year basis during the six months ending on June 30th, exceeding initial projections. This substantial rise is directly linked to the lifting of numerous COVID-19 measures, enabling retail operations to resume near-normal levels of activity.
During the initial months of the previous year, retail outlets were compelled to close temporarily due to COVID-19 regulations. Subsequently, they encountered operational limitations in the latter part of the period, restricting the number of patrons permitted to engage in gambling activities.
Despite the robust growth in retail revenue, Entain reported a 7 percent decline in online revenue compared to the same period in 2021. This downturn is attributed to the increased popularity of online gambling in 2021, driven by the partial closure of physical betting shops. Online gaming revenue experienced a 9 percent decrease, while online sports betting revenue also witnessed a 6 percent decline, accompanied by a 3 percent year-on-year reduction in wagering activity.
Entain attributed this trend to the unfavorable macroeconomic conditions, which resulted in a decrease in customer spending patterns.
As a result, based on present estimates, Entain anticipates that full-year online income will stay steady.
MGM Resorts, Entain’s joint venture with MGM Resorts, continues to perform “robustly,” meeting targets and is projected to surpass $1.3 billion in full-year income.
Looking ahead to the second quarter, the situation is similar, with total group income rising by 8% year-over-year, fueled by a 79% increase in retail income.
Online revenue dropped by 7% in the second quarter, with online casino revenue down 7% and online sports betting revenue down 6%, but sports betting volume rose slightly by 1%.
Entain CEO Jette Nygaard-Andersen stated, “I am pleased to see more and more customers opting to partner with us, reflecting our emphasis on casual players and placing customers at the core of everything we do.”
“We continue to expand our growth prospects through four acquisitions thus far this year. Supported by the Entain platform, MGM Resorts continues to hold a leading position in the US market with a 24% market share.
“The macroeconomic outlook is uncertain, but the core principles of our business remain strong.”
We are positive that our emphasis on clients, our varied offerings, and our capacity to expand both naturally and through acquisitions will assist us in making even greater strides. This is especially true as we see more casual patrons and consistent income.
Entain also declared that they anticipate completing their acquisition of BetCity in the latter half of the year. They believe this will provide “strategic expansion opportunities” in the regulated Dutch marketplace.
Last month, Entain reached an accord with Sports Entertainment Media to purchase BetEnt, a Dutch online sports wagering and gaming operator, as part of the BetCity agreement.