7th Jul 2022 09:00
(Alliance News) - Ladbrokes and Coral owner Entain PLC on Thursday nudged annual guidance lower, as customer spending is hit by inflation and macro-economic woes.
Shares in Entain were down 5.3% to 1,080.00 pence each in London on Thursday morning.
Entain reported that wider group net gaming revenue rose 18% in the first half of 2022 and was up 8% in the second quarter alone.
It added that underlying performance remains "strong", with "record levels of activity" in its second quarter, up 60% from pre-Covid levels in 2019.
However, online NGR was down 7% in both the first half and second quarter.
"A weaker macro-economic environment is reducing customers' rate of spend, moderating overall online growth versus our previous expectations," Entain cautioned.
In particular, the gambling firm cited Covid-19 lockdowns, its closure in Netherlands ahead of licencing and the implementation of tighter affordability measures in the UK as the primary factors cutting its revenue growth.
Due to this uncertainty, Entain has nudged annual guidance lower. For 2022, it now expects flat online net gaming revenue, excluding impacts from the upcoming UK Gambling Act Review. It had previously forecast mid to high single digit growth.
Looking ahead, Entain said that the acquisition of Dutch sports betting operator BetCity is expected to complete in the second half of 2022. BetCity is expected to deliver strategic growth in the newly regulated Dutch market, it added.
Entain Chief Executive Jette Nygaard-Andersen said: "The macro-economic outlook is uncertain, however the underlying performance of our business remains strong.
"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," Nygaard-Andersen added.
By Sophie Rose; [email protected]
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