Entain posts 14% revenue jump in Q2 driven by record online customers, retail rebound

Online gaming giant Entain posted a Net Gaming Revenue increase of 19%, inclusive of its joint venture BetMGM in the US, for the first six months of the year, corresponding to a 16% growth on a constant currency basis. Excluding the US, the firm reported a 14% year-on-year increase to £2.40 billion ($3.06bn).

Growth was driven by a record number of online active customers, reflecting a substantial YoY increase of 23%. Online led the way with £1.68 billion ($2.13 billion) in revenue, which was 145% more than the NGR in the same period last year.

In the retail segment, Entain surpassed market expectations by achieving an 11% growth in NGR reaching £709.3 million ($902.6 million). Entain pointed to the end of Covid restrictions as one of the main reasons for this rise. UK NGR was up 5%, while there was double-digit growth in Italy, Belgium and Croatia.

One of the cornerstones of Entain’s H1 performance has been the success of BetMGM, its joint venture with MGM Resorts. The H1 results revealed that BetMGM’s Net Gaming Revenue experienced a 65% YoY increase for the period, reaching $944 million. 

Notably, BetMGM’s Q2 performance marked a milestone as it achieved its first positive EBITDA figures. The brand kept a market share of 18% in sports betting while maintaining a leading online gaming share of 27%. 

Other H1 highlights found Group EBITDA standing at £499 million ($634.2 million), showcasing a 6% YoY increase. Underlying profit before tax from continuing operations reached $365.5 million (£287.6 million).

Entain’s expansion strategy transactions continued during H1 and included the acquisition of STS Holdings, a move that facilitated Entain’s entry into the Central and Eastern Europe (CEE) market, thereby unlocking growth prospects in the region. 

Furthermore, the partnership with TAB NZ provided unique access to the New Zealand sports betting market, while Entain’s acquisitions of 365Scores and Angstrom Sports are expected to further strengthen its competitive edge.

Jette Nygaard-Andersen, CEO of Entain, stated: “This has been another period of strong performance for Entain as we make clear strides towards delivering our strategic ambitions. In particular, we are making excellent progress in broadening our customer base and deepening our audience engagement, as evidenced by the record number of active online customers on our platform.”

BetMGM continues to show momentum and backed by our technology and capabilities we are excited by the improvements we are delivering for customers in the US,” she added. “This clear focus on driving sustainable long-term growth combined with our global operating capabilities underpins our confidence in our prospects for FY23 and beyond and delivers value for our shareholders.”