The global sports betting and entertainment group Entain reported its results for Q1 2022 where it noted a net gaming revenue (NGR) up 31% as a result of retail sales gaining momentum.
The return of retail has contributed to a strong start to the year, with group NGR up 31% in Q1 2022 compared to 2021.
Due to closures in 2021 due to the pandemic, retail is up significantly YoY with volumes resting between 5% -10% to pre-pandemic levels.
In all major markets of Entain, there is still promise despite online NGR dropping 8% in comparison to strong 2021 benchmarks. The fall of 8% in online NGR was in line with expectations as the boom from lockdown subsides.
The three-year CAGR of online NGR is up 14% (constant currency).
Actives have increased by 34% in the last two years, indicating that the client base is becoming more diverse.
Sports, online and retail along with iGaming revenues make up BetMGM’s revenue. BetMGM, which is consistently the leading iGaming operator with a 29% market share, is currently operational in 23 markets, including four new territories in the first quarter and Ontario on April 4th.
The additions of Avid Gaming, Klondaika, and Totolotek provide strategic growth expansion into new markets.
The Worldwide Gaming Alliance was established to ensure greater standards and protections in the global gaming business. Trials of ARC player protection in international markets are being expanded.
Based on current market assumptions, Entain is on track to achieve a positive EBITDA in 2023.
Under the group’s sustainability charter, it will maintain its focus and make progress toward its goals.
“We have started the year with a good performance across all areas of our business, driven as ever by the strength of our industry-leading platform,” stated Jette Nygaard-Andersen, Entain’s CEO.
“We have delivered strong performances in all of our major markets, and I am pleased to report that Retail is performing well with customers returning for our instore experience.”
“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.”
“Elsewhere, our strategy of expanding into new markets is continuing at pace, having acquired businesses in Canada, Latvia and Poland during Q1.”
Entain shares dropped 1.5% to 1,595 despite reporting results in line with expectations in Q1 2022.