Entain Sees 31 Percent Increase in Q1 Earnings as Retail Ops Rebound
Posted on: April 7, 2022, 06:40h.
Last updated on: July 7, 2022, 10:03h.
Entain had a solid 2021 as earnings surpassed $1 billion. The gaming company is continuing its strong run, adding another success story in the first quarter of 2022.
The global gaming industry, for the most part, is beginning to return to normal. COVID-19 remains a threat, but not to the degree it was a year ago. As a result, most gaming companies can begin to breathe a sigh of relief.
Entain already began its rebound last year. It’s keeping the rhythm going into 2022, with the first quarter of the year delivering even better returns.
Entain Builds on Momentum
Entain just released its latest financial health report, showing a 31% year-on-year increase in its net gaming revenue for the first quarter of the year. Retail operations, such as Ladbrokes, were the biggest driver, increasing their success by over 1,000%.
Last year’s activity took a substantial hit because of COVID-19 health restrictions early in the year. As 2021 progressed and it became possible for governments to loosen the restrictions, Entain gained momentum. In Europe, Entain is active in the UK, Ireland, Italy, Latvia and Poland, among others.
Despite the notable results, not all segments of the company were successful. Entain added in its update that net gaming revenue for its online operations registered a year-on-year decline of 8%. This came as online gaming revenue lost 10%, and online sports betting revenue dropped 7%. Super Bowl LVI and March Madness were apparently not as interesting to online bettors this year.
The results didn’t catch Entain by surprise. It anticipated a drop, according to its announcement, based on the return of the retail gambling and betting markets.
Entain has significant operations in Europe and the US, and is also eying Latin America and Canada.
BetMGM a Major Factor of Entain’s Success
While much of the continued improvements for Entain come from the retail segment, the company acknowledges that a lot of its success is the result of BetMGM. The online sports betting platform is a joint effort between it and MGM Resorts International. It is now one of the best-performing online sportsbooks in the US.
BetMGM controls 24% of the sports betting market where it operates, as well as 29% of the iGaming market. Like many US sportsbooks, it started in the red and expects to show a positive EBITDA (earnings before interest, taxes, depreciation and amortization) by next year.
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,” said Entain CEO Jette Nygaard-Andersen.
BetMGM is live in 24 sports betting markets. Among its most recent conquests are Illinois, New York and Puerto Rico. The latter was the first market outside the continental US for the company; however, it is also now working on a launch in Ontario, Canada.
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