Entain has announced a lower profit in 2022 despite revenue growth amid higher costs, while continuing to face headwinds in 2023 during the ongoing cost of living crisis in the UK. 

The betting and gambling firm reported a pretax profit of GBP102.9 million, down sharply from GBP393.2 million in 2021.

Revenue rose 12% to GBP4.30 billion from GBP3.83 billion. Entain noted that share based payment charges were GBP6.9 million higher than last year, while underlying depreciation and amortisation was 6.9% higher, at GBP238.1 million from GBP222.8 million a year ago. Operating costs widened by 18% to GBP1.12 billion from GBP952.7 million. 

In addition, Entain booked a joint venture loss of GBP194.1 million, including a GBP193.9 million loss relating to BetMGM, in-line with expectations.

The company declared a second interim dividend of 8.5 pence per share, compared to none a year prior. This brings the total dividend to 17p, compared to nothing paid for 2021. 

Looking forward, Entain said it continues to face some regulatory headwinds but nonetheless remains “excited” by the opportunities ahead. It added that it has started 2023 with positive underlying momentum, giving it confidence in its long-term prospects.