UK gambling group Entain has today reported a drop in total net gaming revenue for the first quarter, as a hit from pandemic-led shop closures outweighed a bump in online betting during coronavirus lockdowns.
The company, which owns the Ladbrokes and Coral brands, said total net gaming revenue fell 13% for the three months ended March 31 even as online revenue leapt by 33%.
"While it has only been a handful of days since the re-opening in parts of the UK on the 12 April, we look forward to returning to more normal trading across our whole business," Entain chief executive Jette Nygaard-Andersen said.
Bookmakers have benefited from a surge in online betting during the pandemic, which has to some extent offset the hit from betting shops being shut down due to the restrictions.
Underpinning that trend, the Grand National held last Saturday was Britain's biggest ever online sports betting event as punters went online or used mobile apps to bet on one of the most iconic horseracing events.
Entain, which saw more than 150,000 customer visits on its websites per minute during the race, also said that the momentum from the end of 2020 has carried into 2021.
The blue-chip company, which rebuffed a takeover approach from its US joint venture partner MGM earlier this year, last month kept its dividend suspended despite a profit jump as it took a cautious stance.
The gambling firm also said today that it it has launched a group-wide employee share ownership plan for over 22,500 employees in the UK and overseas.
Many investors are pushing the companies they invest in to make more changes to show their commitment to environmental and social problems.
Entain said its share plan showed ESG concerns were at the heart of its strategy.
"We've been keen for some time to roll out a universal employee share ownership plan as part of this ESG, which we will continue to refine and build on as the business grows," Entain's chief financial officer Rob Wood said.
Entain said under the plan, which will be offered to employees across the world including the Philippines, India and Bulgaria, employees can choose to save a monthly sum from £5 to £100 over three years.
At the end of the period, they will have the option to buy shares in Entain for 20% less than their market value at the start of the invitation period, Entain added.
The company, formerly known as GVC, could not estimate what portion of outstanding shares will be used in the plan ahead of participation by the employees.
