Entain underlying performance of business remains strong

Sports Betting

Entain plc (LON:ENT), the global sports betting, gaming and interactive entertainment group, has reported trading for the periods of 1 April to 30 June 2022 as well as 1 January to 30 June 2022.


·      Group net gaming revenue (“NGR”) up 18% (+18% cc1) in H1, with Q2 up 8% (+6% cc1)

·      Online NGR down 7% (-7%cc1) in H1, Q2 Online NGR down 7% (-8%cc1)

o  Performance continues to reflect tough 2021 comparators driven by Covid lockdowns, closure in Netherlands ahead of licencing and the implementation of tighter affordability measures in the UK

o  A weaker macro-economic environment is reducing customers’ rate of spend, moderating overall Online growth versus our previous expectations

o   Underlying performance remains strong:

§    Continued broadening of the customer base with record level of actives in Q2, up 60% versus the same period in 2019 (pre-Covid)

§      Positive momentum across the first half, with Q2 NGR ahead of Q1

§     Online NGR 3yr CAGR up 13% cc1 for H1

o   Updated guidance6 of full year Online NGR flat year on year based on current outlook, excluding impacts from the upcoming UK Gambling Act Review

·    Retail trading ahead of expectations, with volumes in Q2 ahead of pre-Covid levels driven by gaming and self-service betting terminals

·     BetCity transaction expected to complete in H2, delivering strategic growth opportunity in the newly regulated Dutch market

·      BetMGM continues to perform strongly, in line with expectations:

o   Established number two operator with 24%2,3 market share where BetMGM operates (excluding New York)

o   Consistent leading iGaming operator with 29%3 market share

o   Exclusive partnerships with Carnival Corporation to offer BetMGM on board cruise ships, as well as with Sony Pictures and IGT for a Wheel of Fortune branded gaming experience

o   On track for FY22 NGR of over $1.3bn

o   Reiterate expectation to reach positive EBITDA during 20234

·      Continued ESG leadership and further progress delivering across our Sustainability Charter

o   Awarded GamCare’s Advanced Safer Gambling Standard, for the highest standards of player protection and social responsibility in Entain’s UK online and land-based activities

o   Launched Pitching-In Volunteer Hub for the Trident Leagues, connecting volunteers and local clubs

o   Appointment of Rahul Welde as an independent Non-Executive Director

Jette Nygaard-Andersen, Entain’s CEO, commented:

“I am very pleased to see that more customers are choosing to play with us, reflecting our focus on recreational players and putting the customer at the heart of everything we do. We continue to expand our growth opportunities through complementary acquisitions with four transactions so far this year. Underpinned by the Entain Platform, BetMGM continues to demonstrate its leadership in the US with a 24%2,3 market share.

Our leadership in responsibility and sustainability has seen us implement further player safety measures alongside ARCTM, particularly in the UK, as well as respond to regulatory changes as markets implement regulation. 

The macro-economic outlook is uncertain, however the underlying performance of our business remains strong. 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 strategy.” 

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