Entain reports that retail gambling stores reopened after the new coronavirus (Covid-19) restrictions were relaxed, resulting in an 18% year-on-year increase in net game revenue in the first half of fiscal year 2022. ..
In the latest transaction information, Entain said retail sales were higher than expected, up 243% year-on-year in the six months to June 30.
In the first half of last year, Covid-19 rules closed retailers for part of the period and faced business restrictions in the second half, limiting the number of customers who could gamble.
However, Entain says that “tough” comparators since 2021 have seen more players gambling online due to the partial closure of retail stores, meaning online revenue has fallen 7% year-over-year. Said. Online gaming revenue was down 9%, while online sports betting revenue was down 6% and stakes were down 3% year-on-year.
According to Entain, this has also been affected by the weak macroeconomic environment, which has reduced customer spending. So, based on current outlook, Entain said online revenue is expected to level off for the full year.
In connection with BetMGM’s joint venture with MGM Resorts, Entain said the brand continues to perform “strongly” in line with expectations and expects to generate more than $ 1.3 billion in revenue for the full year.
Looking at the second quarter, this was a similar result, with the Group’s total revenue increasing 8% year-on-year. This is due to a 79% increase in retail revenue.
In the second quarter, online revenue was down 7%, online casino revenue was down 7%, online sports betting revenue was down 6%, but sports betting was up only 1%.
Jette Nygaard Andersen, Entain’s Chief Executive Officer, said:
“This year, we have made complementary acquisitions with four transactions to date, expanding growth opportunities. BetMGM, backed by the Canard platform, has a 24% market share and leadership in the United States. Continue to do.
“The macroeconomic outlook is uncertain, but the basic performance of our business remains strong.
“With an increasingly recreational customer base and relatively resilient revenues, we make further progress in our strategy with proven capabilities that grow through both customer focus, diversification, and organic and M & A. I’m sure we can bring it. “
Entain, meanwhile, added that the recently announced acquisition of BetCity is expected to close later this year, providing a “strategic growth opportunity” for the regulated Dutch market.
Last month, Entain signed an agreement to acquire Dutch online sports betting and gaming operator BetEnt, which is traded as BetCity from Sports Entertainment Media.
