Entain PLC (LON:ENT) said its online operation performed strongly in the first quarter of 2021, however, the segment failed to completely offset collapsing revenues from its retail division during lockdown.
In a trading update for the three months to March 31, the owner of Ladbrokes reported that its online net gaming revenues (NGR) had expanded by 33%, in line with expectations and the 21st consecutive quarter of double-digit growth for the segment.
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However, total group NGR for the period fell 13% as the strength in online failed to overcome a 99% fall in retail NGR as COVID-19 lockdown restrictions forced the group to shutter its betting shops.
Despite this, Entain said it saw “excellent growth” across its major markets in the quarter with the exception of Germany, which was impacted by regulatory changes. It added that its BetMGM business was also showing “outstanding momentum with impressive market share growth” in the US.
The company’s chief executive Jette Nygaard-Andersen also said the company looked forward to a return to normal trading across the business following the partial re-opening of UK shops on April 12.
"This has been another very successful and productive quarter with Entain making excellent progress across a number of our strategic priorities. This is testament to the hard work and dedication of our people across all aspects of our business…. In line with our expectations, the momentum from the end of 2020 has carried into 2021. Although Covid creates some near-term uncertainty, by maintaining our focus on the customer, providing them with great products and services, we remain confident and excited in our long-term prospects", the CEO added.
Employee share plan announced
In a separate announcement, Entain said it has launched a group-wide employee share ownership plan that it said will give over 22,500 of its workers the chance to share in the growth of the business.
Under the ShareSave programme, employees can choose to save a monthly sum from £5 to £100 over three years, and at the end of the period will have the opportunity to buy shares in Entain for 20% less than their market value at the start of the invitation period, which they can sell for a potential profit. Alternatively, they can retain the stock as shareholders in the company or take their savings back.
"Entain has been one of the highest performing companies in the FTSE-100 over the past year, which is the result of hard work and efforts from teams across our international business. Building a strong customer-centric culture where everyone contributes and shares in our continuing success is really important, so this plan is designed to be attractive and accessible to all,” Nygaard-Andersen said.