U.K.-listed Entain reported an 18 percent gain in net gaming revenue (NGR) in the first half of the year but said that a weaker economic environment is beginning to eat into customer spend in its online business.
In a trading update, Entain said its online NGR fell 7 percent in the first quarter. This was in part due to unfavorable comparisons last year when the Covid lockdowns boosted online spending.
However, closure in the Netherlands ahead of new licensing and reduced affordability in the U.K. also had an impact.
The group now sees flat online NGR based on the current economic outlook, without taking into account any impact from the upcoming UK Gambling Act review.
Entain owns a broad stable of sports betting and gaming brands including Ladbrokes, Coral, Sportingbet, Partypoker, and also has a 50/50 joint venture with MGM Resorts in the U.S., known as BetMGM.
“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,” CEO Jette Nygaard-Andersen said. “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 percent market share.”
“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.”
