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  • Entain share price wobbles on 7% downturn in Q2 online NGR
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Entain has reported a 7% decrease in online net gaming revenue for Q2 2022.

The drop-off reflected a tough comparative period due to Covid-19 lockdowns and was further driven by the operator’s temporary withdrawal from the Netherlands.

The implementation of stricter affordability measures in the UK was also a contributing factor, as was the weak macro-economic environment, which has reduced the rate of customer spend, according to Entain.

In Q2, which covered the most recent reporting period between 1 April and 30 June, Entain’s online sports betting NGR fell by 6% as gaming NGR dropped by 7%.

Retail climbed by 79% however as shops reopened and footfall improved compared to the same period of last year which was heavily impacted by lockdowns.

Total group Q2 revenue, including both online and retail, came in 8% higher than the prior corresponding period.

Looking at H2 as a whole, total group revenue increased by 18%. This was again primarily driven by a 243% upturn in retail revenue over the first two quarters.

Entain now expects full-year 2022 online NGR to come in flat at around £3.1bn, although this estimate excludes impacts from the UK’s Gambling Act review, which is expected to be published in the coming weeks.

Entain CEO Jette Nygaard-Andersen: “Underpinned by the Entain platform, BetMGM continues to demonstrate its leadership in the US with a 24% market share.”

Entain’s US joint venture brand BetMGM meanwhile is on course for full-year 2022 NGR of more than $1.3bn.

Entain CEO Jette Nygaard-Andersen said that while the macro-economic environment is uncertain, Entain’s underlying business performance remains strong.

“I am very pleased to see that more customers are choosing to play with us, reflecting our focus on recreational players and putting the customer at the heart of everything we do,” said Nygaard-Andersen.

“We continue to expand our growth opportunities through complementary acquisitions with four transactions so far this year. Underpinned by the Entain platform, BetMGM continues to demonstrate its leadership in the US with a 24% market share.

“Our leadership in responsibility and sustainability has seen us implement further player safety measures, particularly in the UK, as well as respond to regulatory changes as markets implement regulation.

“With an increasingly recreational customer base and relatively resilient revenue, we remain confident that our customer focus, diversification and proven ability to grow both organically and through M&A will enable us to deliver further progress against our strategy,” she added.

London-based investment bank Peel Hunt downgraded its target price from £24 to £20 per share in wake of the Q2 results.

It also reduced its full-year EBITDA forecast to £942m from £1.1bn.

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