Ladbrokes owner Entain reported an online gaming slowdown this morning as the pandemic boom dwindled during the first quarter of 2022.
Though net gaming revenue was down eight per cent compared to the immense growth seen in 2021, group revenue was up 31 per cent thanks to retail.
Discussing the results, Jette Nygaard-Andersen, Entain’s CEO, said: “As a growing business we continue to invest in and build our business around our customers to provide them with the best experiences whilst also capturing the many opportunities ahead.”
Nonetheless, Entain’s joint venture with MGM Resorts continues to go from strength to strength, with BetMGM becoming the leading iGaming operator with 29 per cent of the market share.
BetMGM is now live in 23 markets, including four new markets in the first quarter. The group has also recently snapped up competitors in Canada, Latvia and Poland.
In the US, Entain’s BetMGM is the number two operator, just behind Flutter’s FanDuel.
Whilst shares dropped just over one per cent today, analysts at Peel Hunt backed the gambling firm and said: “We believe the share price fails to reflect the strong growth potential, cash generation and M&A potential”.
They reiterated their Buy recommendation and set target price of 1622p.