The World Cup helped drive a record fourth quarter for betting company Entain. Gaming revenue jumped 11% in the period as punters turned to their betting apps during the unusual winter football competition.
The company also pursued global expansion with acquisitions in Croatia and the Netherlands, and the continued roll out across the United States.
“Entain saw record fourth quarter gaming revenue and a spike in active customers as the winter World Cup gave punters plenty to sink their teeth in to. It’s no real surprise to see annual figures heavily biased toward the retail division growth, as performance laps times when betting shops were shut due to lockdowns,” said Matt Britzman, equity analyst at Hargreaves Lansdown.
“There were always concerns that the lockdown-induced boom for online betting would simply shift back to physical stores, but that doesn’t seem to be the case – online revenue is down a touch but remains well ahead of pre-pandemic levels.”
Britzman highlighted the importance of Entain’s US business and their joint venture with MGM.
“BetMGM, the joint venture with MGM in the US, remains a shining star. Recent performance beat expectations and cash profit should start to flow as we move into the second half of the year. The real question here is how long this will remain a joint venture, it seems unlikely both parties will want to continue their US gambling exposure in its current form indefinitely. If we had to put money on it, a bid from MGM to take full control looks the most likely outcome – time will tell.” Britzman said.