The growing importance of online gambling to the finances of gambling companies has again been shown. Entain have published their 2021 results and their online performance more than made up for the problems encountered by their land-based businesses.
The COVID-19 pandemic again caused problems in 2021. Many times, the land-based businesses found themselves having to be closed due to lockdown rules. 2021 was a year when digital uptake rose in the early part of the year but by its conclusion, there was a return to “more normal trading patterns.”
The group-wide net gaming revenue for Entain was £3.83 billion in 2021, that’s a rise of seven per cent on the previous year. Online net gaming revenue saw a 12 per cent increase. There was improvement in Brazil (up 111 per cent), Italy (up 33 per cent) and Georgia, USA (up 26 per cent). UK figures saw a 10 per cent increase on 2020.
Online sports net gaming revenue was £1.44 billion (up 21 per cent) with gaming four per cent higher than in 2020 at £1.59 billion.
The net gaming revenue for their retail division saw an eight per cent fall to £791.1 million. The hope is that a year without any lockdowns or restrictions will see figures improving.
Germany produced mixed results due to the new regulations that were put in place last year. While sports betting was 22 per cent ahead of last year, gaming was down 61 per cent. Entain believe the changes have created an “uneven market” with many non-compliant operators in the country.
The results were still above their expectations. Entain continue to be “excited” by the long-term prospects in Germany.
Another area that has been going well for Entain is their purchase of Enlabs. They were taken over last year for £316 million and the leading gaming organisation in the Baltic Countries has “performed exceptionally well” since being acquired with figures ahead of initial expectations.
Group-wide underlying operating profit was £484.1 million, that is a figure which is nine per cent the 2020 result.
There were losses recorded at the MGM Resort JV. These amounted to £161.9 million, a figure £101.3 higher than in the previous year. Increased investment and other venues opening are behind the losses.
Jette Nygaard-Anderson is the CEO of Entain. Commenting on the figures, he said: “Our full year results demonstrate yet again that Entain is a business with growth built into its business model.” Retail business has “recovered strongly” said the CEO and volumes are now 90 per cent of pre-COVID levels.
He added that American company BetMGM (who Entain have a partnership with) has delivered a “five-times increase in net gaming revenue versus the previous year,” and is out to challenge for the top position in the markets they operate in.
