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Mixe News for Entain

Mixe News for Entain

Entain, who own several betting companies including Coral and Ladbrokes, believe that online gaming revenues are going to be lower than they had forecast in March of this year.

This is an understandable situation for a number of reasons. It’s noticeable that Entain are referring to online gaming revenues. A look at life in the UK and Entain company history in recent years explains why this forecast has been made.

During the worst of the COVID-19 pandemic, the betting shops seen in cities and towns around the UK were often closed. This led to many gamblers venturing online to make their bets. Some were doing so for the first time after years of being used to gambling in their local bookmakers.

Now that the bookmakers are open again, many gamblers are returning to the shops. This means more revenue for the land-based bookmakers with figures ahead of the expectations of Entain. The amount gambled in their retail shops in the second quarter of this year were ahead of pre-COVID-19 levels.

However, there has been a slight drop in the online gaming revenues. This explains why Entain has made such a forecast. However, it’s a case of the online casinos having a hard act to follow after the increases seen during the worst of the pandemic.

It is perhaps best to compare levels now with those before COVID as that was the main reason for the big rise. New gaming and betting sites continue to open for UK gamblers though and these new online casinos will be confident of success.

Another problem that is hitting the UK, as well as other parts of the world, is the cost of living. Food and energy prices have in particular been increasing. Inflation in the UK is up to levels not seen for a few decades and could reach double figures.

Interest rates are also on the increase in the UK The ongoing war in Ukraine has been one reason for the crisis. The world in July is a different one than when Entain made their forecasts.

With gamblers finding their household bills increasing, many are now cutting down the amounts that they gamble. There have been fears that some gamblers may increase the amounts they wager. The aim would be to try and get a big win that would ease their financial situation. That’s never a good idea though with more losses possible and hopefully, the numbers trying that will be small.

Entain have also closed their business in the Netherlands. This was due to the increased regulation of that market that came into force in October 2021. It is therefore not too easy for figures to be compared to 2021 when they were operating in that market and more people were betting online due to the land-based bookmakers being closed.

In March, Entain’s forecast was that their annual net gaming revenue growth would be in single rather than double figures but not far off that amount. 2021 had seen their online net gaming revenue increase by 12% on the previous year. The pandemic was behind that increase as the way people gambled had to change.

Entain have also seen falls in the online net gaming revenue of Bwin and PartyPoker. The second quarter saw a fall of 7%. However, it’s not all bad news though. The total group net gaming revenue for Entain rose by 8 per cent in the second quarter.

The rise in land-based betting figures will have helped that. Sports fans will think of the results as the half-time score. If that’s the case, then the good news for Entain continues. Group net gaming revenue is up 18% for the period January1 to June 30, 2022.

It remains to be seen whether that upward trend will continue. With the land-based revenues going better than expected, the future looks rosy for Entain. The new football season and the World Cup should produce some good figures, especially in their retail Ladbrokes and Coral shops.

How many customers a company has is of course important. Their second quarter report stated that “underlying performance remains strong.” There has been a “continued broadening of the customer base.” This saw a record level of ‘actives’ in the second quarter. The figure was up 60 per cent compared to the same period in 2019 before COVID entered our lives.

The CEO of Entain is Jette-Nygaard-Anderson who was “very pleased to see that more customers are choosing to play with us.”  Further acquisitions have been made by the company this year and their underlying performance remains strong despite the “uncertain macroeconomic outlook” in the UK.

Entain  aren’t just dependent on the UK market though. Entain, like many other British gambling companies, are always keen to expand their business overseas. This is particularly the case with expansion in the US and also in Canada, where private gambling companies can now open up in Ontario.

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