Entain’s online gambling growth slows but betting shops rebound

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A pedestrian walks past a branch of Ladbrokes in London, Britain December 22, 2017. REUTERS/Simon Dawson

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Jan 20 (Reuters) – British gaming company Entain’s (ENT.L) online betting revenue fell in the fourth quarter after nearly six years of double-digit growth, although activity at its stores rebounded with the lifting of COVID restrictions, he said on Thursday.

Entain, which owns betting shops Ladbrokes and Coral and online brands bwin and partypoker, also said it was tightening its core annual revenue outlook to 875-885 million pounds ($1.2 billion), compared to 850 to 900 million pounds previously.

The company, which has been the subject of two takeover approaches in the past year, said its net online gaming revenue fell 9% in the three months to December 31 from the previous year. previous year, when it had announced particularly high figures.

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It was the first drop after 23 consecutive quarters of double-digit revenue growth measured at constant exchange rates, although Entain said the fall was not as steep as feared.

Entain said its net retail gaming revenue jumped 60%, with betting volumes at its more than 4,000 outlets in the UK, Italy, Ireland and Belgium at less than 10% of pre-pandemic levels. Overall net gaming revenue increased by 4%.

The results were Entain’s first after a year in which US rival DraftKings and casino operator MGM made takeover moves, although neither resulted in a deal.

Interest in the takeover came in a year of rapid growth for the online betting industry during the coronavirus shutdowns and as BetMGM – Entain’s US online sportsbook joint venture with MGM – continued to gain market shares.

BetMGM on Wednesday raised its 2022 revenue forecast and said it expects to report base earnings in 2023. read more

Shares of Entain soared 48% last year, but have fallen 20% since DraftKings dropped a lawsuit against the company in October. The stock was up 0.5% at 09:50 GMT Thursday after the release of business figures.

“We believe (Entain’s) share price does not reflect BetMGM’s increasingly strong position in the United States and Entain’s strong fundamentals to fund expansion,” analysts said. Peel Hunt in a note. ($1 = 0.7338 pounds)

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Reporting by Sachin Ravikumar in Bengaluru; Editing by Shounak Dasgupta and David Clarke

Our standards: The Thomson Reuters Trust Principles.

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