Entain has published a Q2 trading update, reporting an 8% year-on-year rise in net gaming revenue (NGR) despite a drop in online.
The group’s performance continues to reflect so-called “tough 2021 comparators,” when online gaming received a boost from Covid lockdowns.
Other developments have further impacted Entain’s online performance, including closure in the Netherlands ahead of licensing and the implementation of tighter affordability measures in the UK.
The group also said a “weaker macroeconomic environment” is reducing customers’ spend, impacting online growth. As a result, revenue from this segment is down 7% when compared to both Q2 and H1 of last year.
Entain’s online sports segment saw revenue fall by 6% for H1, while gaming recorded an even larger NGR drop, decreasing by 9%.
However, these falls have been offset by retail’s growth. On a year-over-year basis, Entain’s land-based business saw NGR rise by 79% for Q2, and 243% for H1.
Retail trading exceeded Entain’s expectations, and was driven by gaming and self-service betting terminals, it said. In-person wagers rose by 101% for Q2 and 275% for H1.
Overall, retail has undergone a healthy rebound from Covid-19, driving an 18% increase in total group NGR for H1 2022.
“The macro-economic outlook is uncertain; however, the underlying performance of our business remains strong,” said Entain’s 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 M&A will enable us to deliver further progress against our strategy.”