Entain: BetMGM firmly established as number two US operator

Entain has published its Q1 trading update, noting that its 2022 performance so far is in line with corporate expectations.
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Entain has published its Q1 trading update, noting that its 2022 performance so far is in line with corporate expectations, as its business units and brand portfolio are matched against strong 2021 comparatives. 

CEO Jette Nygaard-Andersen praised the performance of BetMGM in the update, stating that the joint venture with MGM Resorts International is now firmly established as the number two operator in the US.

In Q1, Entain reported that its net gaming revenue (NGR) was up 31%, thanks to the return of its retail unit performance which achieved a 1,000% NGR uptake against 2021 lockdown comparatives.  

The group stated that it has continued its online momentum in all major markets despite the vertical accounting for an 8% decline in NGR during the trading period.

Breaking down its online performance, Entain’s sportsbook recorded a 7% decline in NGR, combined with a further 10% drop in NGR for its online gambling segment.

Across the group, online wagers declined by 7%. However, Entain is yet to provide any guidance with regards to trading impacts on its sports unit such as unfavorable results, regulatory headwinds or customer spend declines.

Trading across its online gambling segment in Q1 excluded the performance of Germany and the Netherlands since those markets are undergoing regulatory change.

Nygaard-Andersen commented: “We have started the year with a good performance across all areas of our business, driven as ever by the strength of our industry-leading platform.

“We have delivered strong performances in all of our major markets, and I am pleased to report that Retail is performing well with customers returning for our instore experience.”

In North America, Entain highlighted strong progress for its BetMGM joint venture that has established itself as the number two operator with 24% market share where it operates, as well as a leading igaming operator with a 29% market share.

BetMGM is now live across 23 US states following four additional market launches during Q1. 

Entain is confident that BetMGM will achieve its ‘EBITDA positive target’ by 2023 trading. Further details will be provided at the BetMGM Business Update on May 12.

“In the US, BetMGM is firmly established as the number two operator, and our market launches during Q1 mean that we now have access to over 41% of the US adult population,” Nygaard-Andersen added.

Elsewhere across North America, Entain has also recently made its Canadian debut after launching BetMGM in Ontario’s newly regulated online gambling marketplace on April 4.

The group further boosted its presence in Canada after acquiring Deis Ltd (Avid Gaming), the owner of Canadian online sports betting brand Sports Interaction, for CAD$300m from Middlebrook Investments Limited. 

In Europe, Entain stated that its portfolio will be refreshed by the M&A additions of Klondaika Latvia and Totolotek Poland which it believes will “deliver strategic growth expansion into new markets”

Nygaard-Andersen concluded: “Our strategy of expanding into new markets is continuing at pace, having acquired businesses in Canada, Latvia, and Poland during Q1.

“Given the strength and continuing momentum of our underlying business, coupled with our proven ability to grow both organically and through M&A, we remain confident in our financial performance for FY22 and beyond.”