Ladbrokes owner Entain reports double-digit online revenue growth for 22nd consecutive quarter, return of live sports contributing to 27% increase
- Entain’s digital revenue in the first six months of this year was 27% higher
- Store closures lower retail sales by 42% in the first half of 2021
- Operator bwin expects Euro 2020 to be its biggest sports betting event of all time
Betting firm Entain recorded its 22nd consecutive quarter of double-digit growth in digital sales following a huge increase in sports betting this year.
Net income from online games between April and the end of June at the owner of Ladbrokes jumped 23% compared to the same period last year, when the postponement of sports competitions such as Euro 2020 and the Olympics has hit the bookies trade.
Digital revenues in the first six months of 2021 also increased by 27%, with sales in Italy increasing by 76%, while they increased by almost double that percentage in Brazil.
By plane: Ladbrokes owner Entain saw online revenue increase 23% in second quarter
Entain also benefited from opening its stores for most of the second quarter, unlike last year when the first nationwide lockdown was in effect. As a result, retail revenues increased 363 percent.
However, the forced closure of all of its outlets in the first three months of this year – and the first half of April – and other restrictions have meant that the group’s total net gaming revenue from January through June finished just 11% above their levels last year.
Twenty-four stores remain closed in Italy, but the overwhelming majority of its outlets are now open, and UK trade volumes have returned to around 90% of pre-pandemic levels since easing restrictions.
The company also said its BetMGM joint venture continues to “perform,” earning around $ 350 million in gaming revenue and holding the second-largest market share for sports betting and iGaming in the United States.
Due to the impressive results, operator bwin now expects its underlying pre-tax profits for 2021 to be at the highest estimate between Â£ 850m and Â£ 900m.
Its chief executive, Jette Nygaard-Andersen, said that “the company’s diverse business model has allowed us to grow our business in all key markets while navigating the channel and product line changes as trade retail is reopening and we are annualizing last year’s tight sports calendar. “
Ahead: Due to its impressive results, Entain has raised its expected underlying pre-tax profit for the full year to between Â£ 850 million and Â£ 900million.
Entain further said today that it will double its investments and the number of employees at its three in-house game studios in Italy, UK and India in the coming year.
Later this year, it also aims to launch its first virtual reality product and give customers access to new Formula 1-themed content following a sponsorship deal that its brands PartyCasino and PartyPoker have entered into with Mclaren Racing.
For now, however, he is enjoying the England football team’s performances at the European Championships significantly and expects the tournament to be his biggest sports betting event of all time.
Ladbrokes owner Entain has said he expects the European Championships tournament to be his biggest sports betting event of all time. Above: Gareth Southgate, England football manager
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said England’s victory yesterday “will be a double cause for celebration in Entain’s office”. A final appearance is an open goal for the group and will be a boon to sports betting.
“England’s long run in the tournament may well have been a contributing factor to the news that underlying cash profits are expected to exceed consensus for the full year.”
Entain’s expansion plans took a hit this week, however, when Australian betting company Tabcorp rejected a Â£ 1.9bn takeover bid for its betting and gaming unit of FTSE 100 company. , formerly known as GVC Holdings.
Tabcorp has instead announced that it will be spinning off its lottery and Keno business. Entain said he was “disappointed” by the Melbourne-based group’s decision.
Jefferies analysts said some investors feared Entain might try to swallow a poison pill by acquiring Tabcorp. By making the company too big, it could have delayed a new offer from casino giant MGM, which approached Entain in January about a possible multibillion pound deal.
After the deal collapsed, MGM was barred under takeover rules from making another approach for six months. This period will end later in July, leaving him free to make a new offer if he wishes.
Entain shares closed 0.7% higher at 1,820.5p on Thursday.