Entain Enjoys Online Growth While Retail Suffers
Entain (LON: ENT), the London-listed gaming operator, saw strong growth into the first quarter of this year despite the company’s overall performance being impacted by the coronavirus pandemic.
The company enjoyed its twenty-first consecutive quarter of double-digit growth in online net gaming revenue (NGR) during the first quarter of this year while online sports betting NGR grew 47% year-on-year and online gaming NGR was up 23%, resulting in a 33% increase in total online NGR.
However, there was 99% lower revenue from the retail division, which is made up of operations in the UK, Italy, Belgium, and the Republic of Ireland, with the majority of its venues closed for the period due to covid-related restrictions. Because of this, the total group NGR for Q1 was down 13% when compared to the same period last year.
The company credited its online growth to strong performance in all markets except Germany, and the BetMGM joint venture with MGM Resorts (NYSE: MGM) claimed a 19% share of the US markets in which it operates.
This has been another very successful and productive quarter with Entain making excellent progress across a number of our strategic priorities. This is testament to the hard work and dedication of our people across all aspects of our business. I am delighted that they will now have the opportunity to share in the future success of Entain through our new Share Save plan. We saw excellent growth across all our major markets other than Germany where regulatory changes have impacted the market. BetMGM continues to exhibit outstanding momentum with impressive market share growth. Our acquisitions of Bet.pt and Enlabs underpin further progress on our strategic expansion into new regulated markets.
Nygaard-Andersen said that with retail venues once again open in parts of the UK the company is now looking forward to returning to “more normal trading” across the business. She acknowledged that the pandemic has created “some near-term uncertainty” but said that the company remains “confident and excited” about its long-term prospects.