Key points:
- The Entain share price plunged 6.3% on its Q2 operating update.
- In addition, the gambling company saw its revenues fall slightly in Q2.
- So, what comes next for Entain shares? Can they recover?
Th Entain PLC (LON: ENT) share price plunged 6.34% after the gaming and global sports betting company reported that its revenues during Q2 2022 had fallen slightly as harsh economic conditions made gamers spend less.
The company’s online net gaming revenues (NGR) fell 7% in Q2, leading to a similar decline in H1 online NGR. However, Entain’s NGR in H1 2022 rose 18%, primarily driven by outperformance during Q1.
Also read: 12 Best Shares To Buy As A Beginner.
Investors expressed their concern about Entain’s prospects are the review of the UK’s Gambling Act, which could have a significant impact on the company if lawmakers decide to tighten the gambling rules in the UK.
However, we cannot know how the review of the Gambling Act will affect Entain until it is complete and the UK Parliament passes nee regulations, which could then affect the company’s operations.
Entain reported that its customer base was expanding, adding 60% more customers in Q2 2022 compared to Q2 2019 before the COVID-19 pandemic struck. As a result, despite the Q2 NGR figures falling compared to Q2 2021, they were still ahead of its Q1 revenues.
The sports betting and gambling company also revealed that it expects to complete the acquisition of BetCity in H2, which will open new strategic opportunities in the Netherlands, which recently passed gambling and betting laws.
The firm’s BetMGM brand is still ranked as the number two betting firm in the jurisdictions in which it operates across the United States except for New York. Entain maintained its 2022 net gaming revenue (NGR) target at over $1.3 billion despite the challenging macroeconomic environment.
Entain remains an industry leader regarding safe gambling standards and player protection after receiving GamCare’s Advanced Safer Gambling Standard earlier this year. In addition, the company’s BetMGM brand has signed an agreement with Carnival Corp to offer a wheel of fortune branded gaming experience on its cruise ships.
Entain shares have fallen 36.13% in 2022, and many wonder if its shares can recover. Only time can tell, given the current macroeconomic conditions. However, the company remains a leading player in sports betting and gambling.
*This is not investment advice. Always do your due diligence before making investment decisions.
Entain share price.
The Entain share price plunged 6.34% to trade at 1063.3p, falling from Wednesday’s closing price of 1135.3p.