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Retail return drives revenue up 12% at Entain in 2022

| By Robert Fletcher
Entain reported a 12% year-on-year rise in net gaming revenue (NGR) for its 2022 financial year, primarily due to growth within its retail business following the removal of pandemic-related restrictions.

In a trading update, Entain said group NGR was comfortably ahead of the previous year but did not disclose full financial details at this stage.

Entain’s retail business, which includes operations across the UK, Italy, Belgium, Ireland and Croatia, experienced a 66% jump in NGR during 2022. The group said volumes were ahead of pre-pandemic levels while it also reported market share gains and a growing customer base for the segment.

This came after governments across Entain’s active markets removed the restrictions and measures that were placed on land-based venues during the pandemic such as capacity limits and temporary closures. 

In terms of online, NGR for the full year was down 1%, with Entain putting this down to strong pandemic comparators and the impact of regulatory changes, particularly in the UK and Germany.

Online sports betting NGR remained flat, although wagers were down by 1%, while internet gaming NGR declined 1% year-on-year in 2022.

Entain noted that the figures did not include its 50% stake in the BetMGM US-facing joint venture it operates with MGM Resorts International. When accounting for this, NGR was 15% higher year-on-year on a constant currency basis.

Going into more detail on BetMGM, Entain said the venture continued to perform strongly, with NGR up 71% to $1.44bn (£1.17bn/€1.32bn), which was ahead of expectations. Entain also said that the business is on target to be earnings before interest, tax, depreciation and amortisation (EBITDA) positive by the second half of 2023.

BetMGM’s year-on-year growth came partly as the result of the brand launching in a series of new markets including Maryland, Ohio and, as of yesterday (31 January), Massachusetts.

Looking at wider business activity, Entain noted a number of other highlights in 2022, such as its acquisition of SuperSport in November. SuperSport contributed £8.0m to the final NGR total for the full year.

Shortly after the year-end, Entain also completed its purchase of BetCity, in a deal that will grant the business access to the regulated Dutch market.

In addition, Entain relaunched esports betting brand Unikrn. The esports betting and skill-based wagering brand is currently live in Brazil and Canada, with further launches planned for 2023.

“2022 has been another year of strong financial, operational and strategic progress for Entain,” Entain chief executive Jette Nygaard-Andersen said. “We have continued to grow our revenues in a sustainable and diversified way by expanding our global footprint, broadening our customer appeal, entering new areas of entertainment and providing a safe environment for our customers.

“All of this has led to a record number of active customers in Q4, as well as a full year EBITDA performance ahead of our previous expectations.

“We have started 2023 with good momentum across the business and remain confident in our ability to continue delivering on our growth and sustainability strategy in the year ahead.”

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