Entain published a Q2 business update reporting an 8% increase in net gaming revenue (NGR) year-on-year despite a drop in the online segment.
The group’s performance continues to reflect the so-called “hard comparators of 2021”, when online gaming took a big hit from lockdowns put in place to stop the spread of Covid-19.
Other issues had a further impact on Entain’s online performance, including the closure in the Netherlands prior to licensing and the implementation of stricter affordability measures in the UK.
The group also said a “weaker macroeconomic environment” is reducing customer spending, impacting online growth. As a result, this segment’s revenue is down 7% compared to the second and first quarters of last year.
Entain’s online sports betting segment saw a drop of 6%, while the gaming segment saw an even greater drop in NGR, decreasing by 9%.
However, these declines were offset by retail growth. On an annual basis, Entain’s in-person business saw NGR increase by 79% for the second quarter and 243% for the first quarter.
Retail trade exceeded the company’s expectations, and was boosted by games and self-service terminals. In-person betting increased by 101% in the second quarter. Overall, retail has enjoyed a healthy recovery after Covid-19, driving an 18% increase in the group’s total NGR.
“The macroeconomic outlook is uncertain; however, the underlying performance of our business remains strong,” said Entain CEO Jette Nygaard-Andersen.
“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 mergers and acquisitions will allow us to make further progress against our strategy” .