Q1 2022 Results for Entain: Positive net revenue gains of 31% for Q1 2022 but revenue for online gaming operations fell 8% year on year. (Image from publicdomainpictures at pixabay.com)
What a difference a year makes. If you remember when we posted Entain’s Q1 financial results for 2021, the leading sports betting and casino group had seen a 13% reduction in ‘total gaming revenues’. That loss came as a result of poor performance in the group’s land-based retail operations amid lockdowns and restrictions due to the COVID-19 pandemic.
However, roll on a year and retail is now performing at close to pre-pandemic levels. For Q1 2022, the financial period between the 1st of January and 31st of March, Entain posted 31% in net revenue gains year over year thanks largely to its retail operations such as its Ladbrokes and Coral brands in the UK and across Europe now operating at close to normality. In fact, the company recorded land-based volumes that fell short of pre-pandemic levels by just 5 to 10%.
Net Gaming Revenue from Online Platforms Dropped 8% amid Re-Regulation in Germany and the Netherlands
The recovery of Entain’s retail operations helped to offset an 8% drop in bet gaming revenue brought in by the group’s online operations. Down year on year, it is the reregulation of iGaming laws in the Netherlands and Germany that are seen as the primary reasons for this reduction. The London-listed company temporarily ceased operations in the Dutch iGaming market at the start of October 2021, in order to secure a new license under the new regulations within the country. The group’s online casino brands such as CasinoClub, Party Poker, and Party Casino stopped accepting Dutch players until this new licensing could be obtained.
In Germany, strict new regulations have also had an impact on the revenue that the group can bring in via its online operations. The biggest change that has affected Entain and other operators in the country is the introduction of a maximum bet limit of €1 when playing online video slots. That move has drawn criticism from leading operators as they believe that this will lead to more players venturing to black market online casinos that allow a higher max bet.
Statement from Jette Nygaard- Anderson, Entain’s CEO:
Entain has begun the year with a strong performance across all avenues of our business. Especially pleasing is the performance of our retail businesses, which have experienced major growth thanks to customers, now allowed to return.
BetMGM Reaffirmed as the Number Two Operator Across Markets in the US
The Q1 trading update posted by the company showed that Stateside, Entain’s joint-owned BetMGM brand, has also performed well in the US. The leading brand holds a 24% market share in the US, which makes it the number two operator across each of the markets it is active in stateside. As for the brand’s online casino vertical, it is regularly the leader with a 29% market share.
The brand is live in all US states where online casino gambling is legal while the firm has also recently entered the newly regulated online gambling market in Ontario, Canada. With Canada now a big target for most major iGaming brands, Entain has helped its own presence in the state by acquiring the Canadian firm, Avid Gaming, earlier in the year. It is hoped that this acquisition will allow Entain to gain a big advantage over its competitors in the region.
Entain’s CEO Nygaard-Anderson went on: Our co-owned BetMGm brand has established itself as the number two operator in the US and thanks to entering new markets, the brand now has access to 41% of the American adult population.