The entertainment behemoth Entain declared a 13% annual decrease in net gaming income during the initial three months, primarily due to the closure of almost all physical locations during the period as a result of Covid-19 restrictions.
Entain stated in a trading update that its retail earnings in the United Kingdom, Italy, Belgium, and the Republic of Ireland plummeted by 99%, while the number of sports wagers placed at these establishments dropped by 98%. Each of these markets has implemented measures to prohibit stores from operating for the majority of the quarter as nations strive to curb the further spread of Covid-19.
Despite the sharp downturn in retail, Entain’s online enterprise witnessed expansion, with income rising by 33% annually, marking the group’s 21st consecutive quarter of double-digit growth in this domain.
Income from Entain’s online sports betting division surged by 47% in the first quarter, fueled by a 45% increase in sports betting volume over the three-month period. Online gaming revenue also climbed by 23% during the quarter.
Entain indicated that the online growth was propelled by the performance of BetMGM, its US-facing joint venture with MGM Resorts.
Based on Entain’s report, BetMGM holds a 19% share of the market in the states where it operates in the US. This makes it the top iGaming company in the nation, boasting a 23% market share.
Entain’s CEO, Jette Nygaard-Andersen, expressed confidence about the company’s overall performance in the first quarter. She praised the growth of the online business and emphasized the reopening and recovery of its retail locations in the fourth quarter. This comes as COVID-19 restrictions ease in its operating regions.
“This was another successful and productive period, with Entain making substantial progress across many of our key goals,” Nygaard-Andersen stated. “It is a reflection of the hard work and dedication of our employees across all aspects of our operations.
“We witnessed good growth in all major markets, except Germany, where regulatory changes have affected the market. BetMGM continues to exhibit exceptional momentum, with impressive market share expansion.
“We are pleased to welcome customers back to our stores as some COVID-19 restrictions are lifted. Although it has only been a few days since parts of the UK reopened on April 12, we anticipate returning to a more typical trading pattern across the business.”
Nygaard-Andersen also emphasized the acquisition of Enlabs AB and Bet.pt operators in the first quarter. She stated that these acquisitions will support the company’s strategic expansion into new regulated markets.
Entain finalized the acquisition of Enlabs in the Baltic region in March, following its 94-year history.
Despite securing only 6% shareholder backing, Entain has successfully finalized the acquisition of Portuguese betting operator Bet.pt, an agreement reached last October.
Entain has also made notable strides in the initial quarter, including the introduction of new initiatives as part of its Advanced Responsibility and Care (ARC) program, which will be fully implemented in the market during the summer months.
These new affordability assessments will aid the Ladbrokes and PartyGaming operators in identifying customers who may be at risk of financial distress due to gambling and implementing betting restrictions and more stringent affordability checks.
“As anticipated, the positive momentum from the latter part of 2020 has carried over into 2021,” stated Nygaard-Andersen.
“While there is some short-term uncertainty stemming from the Covid situation, we remain confident and enthusiastic about the long-term prospects by prioritizing our customers and providing them with high-quality products and services.”
On this day, Entain also unveiled an employee share ownership program, enabling its staff to purchase shares. Through this program, Entain employees can contribute between £5 and £100 per month and acquire Entain shares at a 20% discount to the market price after a period of three years.
“Entain has consistently ranked among the top performers in the FTSE-100 index over the past year, a testament to the hard work and dedication of our teams across our global operations,” remarked Nygaard-Andersen.
Its crucial to cultivate an environment where every individual prioritizes the customer and collaborates to ensure our continued success. This initiative aims to engage all members and empower them to make a positive impact.
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