REG - Entain PLC - Interim Results
08/08/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240808:nRSH6352Za&default-theme=true
RNS Number : 6352Z Entain PLC 08 August 2024
427.00am 08 August 2024
Entain plc
("Entain" or the "Group")
H1 outperformance supported by improving operational execution; FY24 guidance
upgraded
Entain plc (LSE: ENT), the global sports betting and gaming group, today
reports Interim Results for the six-month period ended 30 June 2024 ("H1").
· Total Group Net Gaming Revenue ("NGR"), including 50% share of
BetMGM, up +6%, +8%cc(2), and 0%cc(2) on a proforma(3) basis
o Online NGR (excluding US) up +9%, +11%cc(2), +1%cc(2) proforma(3)
· H1 results reflect underlying Q2 outperformance and stronger than
expected win margins for Euros
o H1 Group EBITDA(4) at £524m, up +5% vs prior year
· Improving underlying growth: Online NGR proforma(3) performance
improved from Q1 -2%cc(2) YoY to Q2 +5%cc(2) YoY (flat prior to start of
Euros), with Brazil delivering +28%cc(2) growth in H1
· Margin expansion: further Project Romer efficiencies identified,
increasing net savings target to £100m for 2026 (from £70m)
· BetMGM accelerating performance in year of investment: delivering
sequential quarterly revenue growth and stabilising market share, ahead of
further expected investment in H2
· Appointment of new CEO: Gavin Isaacs joining on 2 September 2024,
with leadership continuity as Stella David succeeds as Chair from 30 September
2024
· FY24 guidance upgraded: stronger than expected Q2 and revised
regulatory implementation timing
o Expect low single-digit positive(2) proforma(3) growth in Online NGR (from
low single-digit negative)
o Group EBITDA(4) expected to be in the range of £1,040m-£1,090m
Stella David, Interim CEO & Chair Designate, commented:
"Entain's H1 results are clear evidence that our hard work improving the
Group's operational performance is bearing fruit. Whilst there is more work to
do, we are pleased with the progress so far and look forward to building
further on these solid foundations in H2 and beyond.
Our focused execution underpins the Group's performance so far this year, and
we are excited by the opportunities ahead. I look forward to welcoming Gavin
Isaacs as our new Chief Executive Officer and supporting him as we continue to
build on the Group's improving operational momentum."
H1 2024 Trading performance:
Net Gaming Revenue (NGR)
Q1 Q2 H1
YoY YoY cc(2) YoY YoY cc(2) YoY YoY cc(2)
Rpt(1)
Proforma(3)
Rpt(1)
Proforma(3)
Rpt(1)
Proforma(3)
UK & Ireland (7%) (7%) (5%) (5%) (6%) (6%)
International 4% (2%) 10% 7% 7% 3%
CEE(5) 124% 11% 127% 13% 126% 12%
Total Group (ex US) 4% (3%) 8% 2% 6% 0%
Total Online 7% (2%) 12% 5% 9% 1%
Total Retail (1%) (6%) 2% (2%) 1% (4%)
Total Group inc 3% (3%) 8% 3% 6% 0%
50% of BetMGM
Prior year performance displayed in new reporting structure available at:
https://entaingroup.com/investor-relations/results-centre/
(https://entaingroup.com/investor-relations/results-centre/)
H1 performance highlights
· Total Group NGR including 50% share of BetMGM(1), up +6%,
+8%cc(2), and 0%cc(2) on a proforma(3) basis
o Group NGR (exc. US) up +6%, +8%cc(2), 0%cc(2) proforma(3)
o Online NGR (exc. US) up +9%, +11%cc(2), +1%cc(2) proforma(3), with active
customers +13% proforma(3)
· UK & Ireland NGR down -6%cc(2), in line with expectations
o UK&I Online -8%cc(2) reflects prior year comparative regulatory
headwinds, partially offset by improving player KPI's driven by product and
offering enhancements including greater simplification of our player journeys
§ Actives up +12% YoY and year-to-date stabilisation in spend per head
o UK&I Retail -4%cc(2), in line with expectations, ahead of our next
generation gaming cabinet rollout which completes in Q3
· International NGR was up +10%cc(2), +3%cc(2) on a proforma(3)
basis
o Brazil delivered strong double-digit revenue growth ahead of schedule,
with H1 NGR +28%cc(2)
o Australia returned to flat(2) year on year for H1 NGR, despite softness in
underlying market
o Italy -3%cc(2) (Online -3%cc(2), Retail -4%cc(2)) with customer-friendly
Q1 sports margins offsetting volume growth
· Entain CEE(5) continued to perform well with NGR +12%cc(2)
proforma(3) with SuperSport in Croatia performing particularly strongly at
+17%cc(2) YoY
· BetMGM delivered accelerating net revenue momentum through H1 and
stabilising 13%(6) market share
o Q2 NGR up +9%cc(2) YoY and up +4%cc(2) on Q1 driven by strong acquisition
and retention metrics with improving app and product capabilities and
successful engagement campaigns
o Encouraging results from Angstrom-powered MLB and NBA offerings; expansion
into NFL offering expected ahead of 2024 season
o Reinforcing iGaming strength with expected marketing investment in H2
H1 financial highlights
· Group EBITDA(4) at £524m, up 5% vs 2023; Online EBITDA(4)
£445m, +9%, Retail EBITDA(4) £140m, -11%
· Group loss after tax was £47m
· Proposed interim dividend of 9.3p per share, +5% year on year
· Successful repricing of term loan debt and equivalent £600m add
on
· Robust balance sheet with net debt of £3,329m and available cash
of >£1.3bn, at 30 June 2024
· Project Romer efficiency programme progressing well, increasing
annual net savings target to £100m in 2026
· FY 2024 Group EBITDA(4) expected to be in the range of £1,040m
to £1,090m
o Reflecting uplift from stronger than expected Q2 NGR performance, revised
timing of regulatory implementation in Brazil and the Netherlands, offset by
FX headwinds
H1 summary: 1 January to 30 June 2024
Total Group (ex US) Reported(1)
2024 2023 Change CC(2)
Six months to 30 June £m £m % %
Net gaming revenue (NGR) 2,555.7 2,404.3 6% 8%
Revenue 2,520.3 2,377.6 6% 8%
Gross profit 1,534.6 1,457.7 5%
Underlying EBITDA(4) 523.8 499.4 5%
Underlying operating profit(7) 287.9 307.4 (6%)
Underlying profit before tax(7) 248.8 287.6 (13%)
Loss after tax (46.9) (502.5)
Continuing diluted EPS (p) (6.8) (83.9)
Continuing adjusted diluted EPS(8) (p) 12.4 21.6
Continuing adjusted diluted EPS(8) exc. US (p) 21.0 29.7
Dividend per share (p) 9.3 8.9
( )
Capital Allocation Committee
As per announcement on 21 May 2024, the Capital Allocation Committee ("CapCo")
concluded that Crystalbet is non-core to the Group and as such strategic
alternatives would be considered. This review process is underway and updates
will be announced as appropriate in due course.
The CapCo will continue to regularly review the Group's strategic progress
including significant aspects of capital commitments, with ongoing
consideration to maximise shareholder value.
Appointment of CEO and Chair transition
As announced on 22 July 2024, Gavin Isaacs has been appointed as Chief
Executive Officer, effective on 2 September 2024. To ensure an orderly
transition, Stella David will succeed Barry Gibson as Chair on 30 September
2024.
Dividend
In line with the Group's progressive dividend policy, the Board has proposed
an interim dividend of c£60m (9.3p per share), a 5% year on year increase per
share. The interim dividend in respect of the H1 2024 results is expected to
be paid in September 2024 to shareholders on register on 16 August 2024.
Outlook
Entain's performance in the first half of 2024 demonstrates our improving
underlying growth and the clear progress made against our strategic
priorities. As we look to the remainder of 2024, our expectations for the
Group's growth pathway remains unchanged, with the stronger than expected Q2
performance driving our upgraded NGR guidance. We now expect FY24 Online NGR
growth on a proforma(3) basis to be low single digit positive(2), with the
Group delivering FY24 EBITDA(4) in the range of £1,040m to £1,090m. Building
on the progress already made, we are confident that continued execution of our
strategic priorities of organic growth, margin expansion and winning in the US
will deliver value for all our stakeholders.
Notes
(1) H1 2024 reported numbers are unaudited and relate to continuing
operations
(2) Growth on a constant currency basis is calculated by translating
both current and prior year performance at the 2024 exchange rates
(3) Proforma references include all 2023 acquisitions as if they had
been part of the Group since 1 January 2023
(4) EBITDA is defined as earnings before interest, tax, depreciation and
amortisation, share based payments and share of JV income. EBITDA is stated
pre-separately disclosed items
(5) Entain CEE consists of our businesses in Croatia (SuperSport) &
Poland (STS)
(6) Consolidated GGR market share consists of last three months ending
May or June 2024 (as latest reported) for U.S. sports betting markets where
BetMGM was active (online and retail), last three months ending June 2024 for
U.S. iGaming markets where BetMGM was active, and last three months ending
June 2024 for the Ontario market. Internal estimates used where operator
specific results are unavailable
(7) Stated pre separately disclosed items
(8) Adjusted for the impact of separately disclosed items, foreign exchange
movements on financial indebtedness and losses/gains on derivative financial
instruments (see note 8 in the interim financial statements)
Enquiries
Investor Relations - Entain plc investors@entaingroup.com (mailto:investors@entaingroup.com)
Media - Entain plc media@entaingroup.com (mailto:media@entaingroup.com)
Sodali & Co Tel: +44 (0) 20 7250 1446
Rob Greening/Russ Lynch/Sam Austrums entain@sodali.com (mailto:entain@sodali.com)
Presentation and webcast
Entain will host a 2024 Interim Results presentation and Q&A session
today, Thursday 8(th) August at 9:30am BST, at: etc.venues, 200 Aldersgate St,
Barbican, London EC1A 4HD.
Analysts and investors may attend in person, having pre-registered via the
in-person registration link
(https://entain-interim-results-8-aug-24.open-exchange.net/) . Alternatively
join the webcast approximately 15 minutes ahead of the event: online webcast
link (https://entain-interim-results-8-aug-24.open-exchange.net/) .
The presentation slides as well as a replay and transcript will be available
on our website:
https://entaingroup.com/investor-relations/results-centre/
(https://entaingroup.com/investor-relations/results-centre/)
Dividend Timetable
Announcement date: 08 August 2024
Ex-Dividend date 15 August 2024
Record date: 16 August 2024
Payment date: 20 September 2024
Forward-looking statements
This document contains certain statements that are forward-looking statements.
They appear in a number of places throughout this document and include
statements regarding our intentions, beliefs or current expectations and those
of our officers, Directors and employees concerning, amongst other things,
results of our operations, financial condition, liquidity, prospects, growth,
strategies and the business we operate. These forward-looking statements
include all matters that are not historical facts. By their nature, these
statements involve risks and uncertainties since future events and
circumstances can cause results and developments to differ materially from
those anticipated. Any such forward-looking statements reflect knowledge and
information available at the date of preparation of this document. Other than
in accordance with its legal or regulatory obligations (including under the
Market Abuse Regulation (596/2014) as it forms part of English law by virtue
of the European Union (Withdrawal) Act 2018, the Listing Rules, the Disclosure
Guidance and Transparency Rules and the Prospectus Rules), the Company
undertakes no obligation to update or revise any such forward-looking
statements. Nothing in this document should be construed as a profit forecast.
The Company and its Directors accept no liability to third parties in respect
of this document save as would arise under English law.
About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest
sports betting and gaming groups, operating both online and in the retail
sector. The Group owns a comprehensive portfolio of established brands; Sports
brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands
include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group owns proprietary technology across all its core product
verticals and in addition to its B2C operations provides services to a number
of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and
iGaming in the US. Entain provides the technology and capabilities which power
BetMGM as well as exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK and is the only
global operator to exclusively operate in domestically regulated or regulating
markets operating in over 30 territories.
Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by
MSCI. For more information see the Group's website: www.entaingroup.com
(http://www.entaingroup.com/) .
LEI: 213800GNI3K45LQR8L28
CHIEF EXECUTIVE OFFICER'S REVIEW
Entain is a leading player in sports betting and gaming, a global industry
with attractive dynamics and structural growth. We are proud to be the most
diversified leader of scale in our sector, only operating in regulated or
regulating markets. Our trusted brands, leading market positions and
increasingly localised offerings are supported by our scaled in-house
technology and product capabilities. Entain is focused on delivering our
customers a great player experience with engaging products and content,
underpinned by leading player protection measures. We have a clear strategy to
deliver value to all our stakeholders through focused execution towards our
strategic priorities:
• Drive organic growth
• Expand online margins
• Empower growth in US
As Interim CEO, I have led the Group through the first half of this year, and
the business has not been treading water. We have clear targets; we have been
laser focused on execution and delivering the brilliant basics that drive
customer acquisition and retention; and I'm delighted with the progress
achieved so far. Our H1 results demonstrate that our operational
transformation is bearing fruit, rebuilding our growth momentum and returning
our business to its winning ways.
There is still a lot of hard work to do in the second half of 2024 and beyond,
and this also presents us many exciting opportunities ahead to capture. I am
passing the CEO baton to Gavin Isaacs with strong building blocks in place for
him to lead the business through its next phase. His leadership will see the
ongoing execution of our refocused strategy, accelerating our pathway to
operational excellence and returning the business to its leadership position.
I am very much looking forward to working with Gavin as I take on the role of
Chair, succeeding Barry Gibson on his retirement at the end of September.
H1 2024 performance
The Group ended the first half of 2024 ahead of expectations, with Total Group
NGR including our 50% share of BetMGM up +6% reported(1) and 0%cc(2) on a
proforma(3) basis. Excluding BetMGM, Group NGR was also up +6% (+8%cc(2)), and
0%cc(2) proforma(3). The Group's Online and Retail operations both performed
in line or better than our expectations during the first half of 2024,
delivering Group EBITDA(4) of £524m, up +5% year on year.
Our first half of 2024 performance was delivered by focused execution driving
improving underlying growth across our business, as well as benefiting from
stronger than expected margins in the UEFA Euros tournament. Reported Online
NGR (ex US) was up 11%cc(2) versus the prior year reflecting our improving
operational performance, stronger than expected Q2 sports margins, as well as
the benefit from last year's acquisition of STS and our partnership with TAB
NZ. On a proforma(3) basis Online NGR was +1%cc(2) year on year.
Our H1 performance demonstrates the progress achieved so far towards our
strategic priorities.
Drive Organic Growth
Since November 2023, our portfolio has been refocused, prioritising growth and
returns. Customer acquisition and retention have been central to our approach
in rebuilding our brilliant basics, as these are critical to driving organic
growth. As reflected in our strong growth in actives, we continue to attract
customers with our trusted brands. We are working hard, reinvigorating our
acquisition channels, accelerating our product delivery, whilst boosting
retention with our improving offering and customer experience. By simplifying
customer journeys, localising our offering and streamlining app experiences,
coupled with more effective marketing, we are confident in driving future
growth. In two of our "must win" markets, UK & Brazil, we are seeing
evidence that these actions are bearing fruit and we are excited for the many
opportunities ahead as we deliver our pipeline of initiatives towards our
ambition of operational excellence.
UK & Ireland
The UK&I is Entain's largest market. As such, it is critical to our
strategic success and Group performance that we return our UK&I business
back to its winning ways. In H1, UK&I NGR was down -6%cc(2) year on year
as expected. Our UK&I Online performance in H1 (-8%cc(2)), reflects the
complexity of our prior year regulatory implementations on our customers'
experience. We have been laser focused in addressing this without compromising
our player protection. It is encouraging to see green shoots of improvement,
evidencing that the ongoing simplification of our player journeys is yielding
results. With spend per head now stabilising and H1 UK Online NGR up +2% on H2
2023 we have increased confidence in our UK Online business returning to
organic growth by the end of this year. As well as improving our UK offering
and experience, we continue to engage customers with innovative marketing such
as Foxy's recent "Moedown" campaign. The introduction of Ladbrokes Bucks and
Coral Coins have landed well and we have a strong pipeline of in-house and
exclusive games throughout this year. Our Sportsbook enhancements to UX,
design and app speed are delivering improved experiences for our players, and
there's more to come in H2 including our improved Betbuilder sports product.
The UK&I is an omni-channel market which brings many opportunities. As
part of our business structure realignment, we combined the management of
Online and Retail in the UK&I. The UK&I retail estate continues to
perform well across both sports and gaming, underpinned by exclusive and
in-house content coupled with digital in-shop experiences. In line with
expectations, UK&I Retail delivered H1 NGR -4% behind 2023 reflecting
competitors' cabinet cycle, just ahead of Entain rolling out our next
generation Kascada cabinets by August. UK&I Retail H1 NGR is up +3%
compared to H2 2023.
International
Brazil is a "must win" market for Entain. It is the fastest growing outside of
the US and our Sportingbet brand is well positioned to be successful in this
highly competitive sports betting and gaming market. Since installing our
local leadership team in 2023, we have been refocusing our Brazil operations.
We took decisive action to realign our customer acquisition channels, payment
processing and product engagement and are seeing results. During H1 we have
seen improvements in customer acquisition and our leading in-house sports app
365Scores, acquired in July 2023, has also been a powerful channel and
complementary to our other initiatives. Alongside our Sportingbet brand
reinvigoration and refreshed creative strategy, we shifted to open TV and
digital advertising. Player experience and product are vital to customer
retention; in addition to improving our integration of Pix to allow instant
withdrawals and deposits, we increased our local sports offering to focus on
Brazilian football and expanded our gaming portfolio with many favourites
including Aviator, a virtual crash game. The green shoots of growth from these
actions have been steadily accelerating and we now see the business delivering
strong double digit NGR growth, with H1 Online NGR up +28%cc(2). The
turnaround and rebuild of our business performance in Brazil gives us
confidence in our brand, product and offering ahead of the licenced regime
launch at the end of this year.
Australia is the largest Online market in our International division, and
during the first half of this year delivered a strong performance, returning
to flat year on year. Despite the underlying market experiencing expected
softness, our Ladbrokes and Neds brands continue to differentiate themselves
in the highly competitive Australian market. Entain Australia's partnership
with TAB NZ continues to perform in line with expectations, with actives up
+11% year on year proforma(3). In line with plan, the business was
successfully migrated onto Entain Australia's technology platform during Q2,
and our New Zealand customers are now enjoying an enhanced sports betting
experience. Alongside leveraging our strong Entain Australia offering we are
excited by the opportunity ahead in New Zealand including our new online-only
brand "Betcha" which launched this week.
Our business in Italy continues to operate in a competitive market. Our H1
performance across both Online (-3%cc(2)) and Retail (-4%cc(2)) reflects the
customer-friendly sports margins in Q1 offsetting our growth in volumes. The
growth in the underlying Italian market remains strong and omni-channel
operators continue to outperform with point of sales touchpoints and brand
recognition driving engagement across both Online and Retail. Leveraging our
omnichannel position we continue to offer customers new sports and gaming
products. Entain remains a top tier offering in a highly attractive market and
our strong brands are well placed to benefit from the implementation of the
revised online licensing expected at the end of this year.
Entain CEE (Croatia & Poland)
Our Entain CEE business continues to perform strongly in this fast growing and
highly attractive region. SuperSport in Croatia is a market leader across both
Online and Retail, performing strongly in H1 with NGR up +17%cc(2) YoY. Our
Online gaming offering has been particularly successful with NGR up +27%cc(2)
as players enjoy attractive jackpot products and reward features. STS
Holdings, the largest operator in Poland, delivered proforma(3) NGR growth of
+8%cc(2) during the first half of 2024, performing well despite increased
competitive intensity.
Margin Expansion
Following the Group's phase of rapid growth supported by M&A, we are
focused on simplifying our operating model, ensuring our business has secured
strong building blocks and structures to capitalise on growth opportunities
ahead. Our efficiency programme, Project Romer, enables more agility in
execution and more effective delivery, unlocking efficiencies and savings.
Completion of the initial phases earlier this year gave us confidence in our
pathway to delivering approximately £70m of net cost savings in 2025. Further
progress with our initiatives now see potential for even greater efficiencies,
increasing our target of net cost savings to £100m in 2026. As well as
delivering savings, these initiatives also free up capital to reinvest back
into product and player experience, supporting further growth, building scale
and increasing operational leverage to expand our EBITDA margins. We remain on
track to deliver our target of 28% Online EBITDA margins in 2026 and towards
30% over time.
US Market Growth
Driving our growth in the US remains a key strategic priority for Entain.
BetMGM is a leading operator in this fast growing highly competitive industry,
operating in 29 markets with access to 52% of the adult population, including
recent launches in North Carolina in March and district-wide in the District
of Columbia in July. We committed to 2024 being a year of investment for
BetMGM, strengthening the business for the future by improving our customer
offering, stepping up our investment in attracting and retaining players as
well as unlocking our unique omnichannel opportunities as we leverage the
completion of our single account single wallet functionality across the US,
subject to approval in Nevada.
We are encouraged to see this strategy is delivering, exceeding our internal
goals for both acquisition and retention, stabilising market share and driving
sequential quarterly revenue growth. BetMGM reported H1 net revenue of $1.0
billion (+6%cc(2)), with Q2 up +9%cc(2) YoY and growth accelerating as Q2 NGR
was up +4%cc(2) compared to Q1.
We have made significant enhancements to our sportsbook during the first half
of 2024. The integration of Angstrom, Entain's specialist US-sports focused
pricing and data analytics capability, enabled BetMGM to expand its markets
and range of MLB and NBA products with our fully in-house SGP and SGP+
offering. These enhancements have doubled volumes of weekly MLB SGP bets with
actives placing an MLB SGP bet also up 40% versus last year. We are excited to
see Angstrom's capabilities fully integrated into our NFL offering ahead of
the 2024 season, as well as a more streamlined lobby experience and new
features including live bet tracking.
iGaming continues to be a strength for BetMGM, with players enjoying the
widest collection of online proprietary and exclusive games. We continue to
invest in our in-house content, exclusive third-party relationships, as well
as more personalized engagement and rewards mechanics that are unique to
BetMGM. BetMGM offers the largest online jackpots, with the current New Jersey
jackpot of over $5 million, setting a record for the largest regulated US
jackpot. Reinforcing our iGaming strength we expect to increase marketing
investment during H2 of 2024 to maximise future growth and profitability.
BetMGM is the only top-three operator with a licenced mobile app live in
Nevada and we are excited to unlock this competitive advantage ahead of the
NFL season. Subject to regulatory approval in Nevada, this will complete
BetMGM's single wallet platform across the US. This enables players traveling
outside their home state to seamlessly continue playing with BetMGM using
their same wallet and earning reward points. This is a unique selling
proposition for BetMGM, with MGM Resorts properties in Las Vegas representing
13 million room nights annually and a replenishing pool for new customers as
well as strong retention and reactivation mechanisms.
Supporting our improving customer experience and product pipeline delivery is
our investment in player acquisition through best-in-class marketing
partnerships with X, Marriott Bonvoy and Associated Press. Our Super Bowl
commercial alongside our citywide takeover of Las Vegas saw tremendous
acquisition results, robust technology stability and top-rated customer
service metrics.
We are encouraged to see our investment in BetMGM's product offering and
customer experience delivering accelerating momentum, which gives us
confidence in improving year-over-year revenue growth during H2 of 2024 and
into 2025. BetMGM has a pipeline of exciting opportunities ahead, reinforcing
our conviction in BetMGM's strong future.
H1 sustainability highlights:
Entain has a longstanding commitment to sustainability, and it remains a key
enabler supporting our growth strategy. Our Sustainability Charter's four
pillars encapsulate the sustainability issues that are most important to
Entain, our customers, colleagues and partners:
• Lead on player protection
• Provide a secure and trusted platform
• Create an environment for everyone to do their best work
• Positively impact our communities
Lead on player protection - player safety remains embedded in our ambition to
deliver the best experience for customers. The quality and sustainability of
our business and our earnings are central to our unwavering ambition to be a
leader across the sustainability agenda. Our approach also continues to evolve
alongside our markets and our customers, ensuring we remain relevant and
appropriate at a localised level.
Provide a secure and trusted platform - we operate in a highly regulated
sector where the highest ethical standards are critical in maintaining trust
with our customers and wider society. We are also proud to be the only global
operator with 100% of our revenues coming from regulated or regulating
markets. Entain launched a new Ethics & Compliance Charter as well as put
in place a new ESG Governance structure with two board-level committees
(Sustainability & Compliance and People & Governance), with oversight
from the Board key to ensuring robust execution and accountability across the
business.
Create an environment for everyone to do their best work - supporting our
ambition to be an employer of choice, we have launched several new
initiatives. These include Your Goals, Entain's new objective setting
programme, and a refresh of our values and behaviours. Our aim to be an
inclusive and supportive culture was recognised by us being awarded Innovator
of the Year at the Women in Gaming Diversity Awards for our Returnship
programme with McLaren Racing.
Positively impact our communities - supporting Entain's ambition to reducing
carbon emissions along with our formal commitment to reduce our absolute scope
1, 2 (market-based) and 3 emissions, we initiated our partnership with
Normative - a science-based carbon accounting software platform - that
provides clear and actionable insights while facilitating collaboration among
stakeholders within our operations and value chain to get us to net-zero. We
also scaled up our partnership with EcoVadis - the world's largest platform
for supplier sustainability ratings - onboarding and assessing 35% of our
in-scope suppliers and supporting them to improve their sustainability
performance while helping us gain greater insights into our value chain. We
continue to purchase just under 100% of renewable energy in the UK and
Republic of Ireland, amounting to 70% of our purchased electricity globally
We also continue to make a positive impact through the charitable work of the
Entain Foundation. Our flagship Pitching In programme in the UK pioneers
engagement between semi-professional football and local communities. Our
funding of the Trident Community Foundation has helped to deliver over 100
initiatives to improve the lives of thousands of people across the country.
Continued recognition across our sustainability agenda include:
• Tier 1 in 2024 CCLA Corporate Mental Health Benchmark UK 100
• GamCare's Safer Gambling Standards for Online (Advanced Level 3)
and land-based (Advanced Level 2) activities
• Top 20 UK Best Companies to work for - LinkedIn 2024
• Maintained inclusion in FTSE4Good and Dow Jones Sustainability
indices and MSCI's AA rating
Notes
(1) EBITDA is defined as earnings before interest, tax, depreciation and
amortisation, share based payments and share of JV income. EBITDA is stated
pre-separately disclosed items
(2) Growth on a constant currency basis is calculated by translating both
current and prior year performance at the 2024 exchange rates
(3) Proforma references include all 2023 acquisitions as if they had been
part of the Group since 1 January 2023
Financial Results and the use of non-GAAP measures
The Group's statutory financial information is prepared in accordance with
International Financial Reporting Standards ("IFRS") and IFRS Interpretations
Committee (IFRS IC) pronouncements as adopted for use in the European Union.
In addition to the statutory information provided, management have also
provided additional information in the form of Contribution and EBITDA as
these metrics are industry standard KPIs which help facilitate the
understanding of the Group's performance in comparison to its peers. A full
reconciliation of these non-GAAP measures is provided within the Income
Statement and supporting memo.
During the current year, the Group has amended its operating segments in line
with the revisions to the Group's reporting to the executive management team
("CODM"). The Group's operating segments are aggregated into four reportable
segments; UK&I, International, CEE and Corporate with a New Opportunities
segment also present in 2023.
Our CEE region consists of our businesses in Croatia and Poland.
CHIEF FINANCIAL OFFICER'S REVIEW
FINANCIAL PERFORMANCE REVIEW
Group
Reported results(1)
Six months to 30 June 2024 2023 Change CC(2)
£m £m % %
NGR 2,555.7 2,404.3 6% 8%
VAT/GST (35.4) (26.7) (33%) (39%)
Revenue 2,520.3 2,377.6 6% 8%
Gross profit 1,534.6 1,457.7 5%
Contribution 1,194.2 1,126.2 6%
Operating costs (670.4) (626.8) (7%)
Underlying EBITDA(3) 523.8 499.4 5%
Share based payments (8.9) (9.1) 2%
Underlying depreciation and amortisation (169.7) (134.8) (26%)
Share of JV loss (57.3) (48.1) (19%)
Underlying operating profit(4) 287.9 307.4 (6%)
Reported Results(1):
NGR and Revenue increased by +6% (both +8%cc(2)) versus 2023 in the first
half, with the benefit of the annualisation of 2023 acquisitions and strong
underlying performance in a number of our key territories offset by an NGR
decline in the UK following regulatory implementations in the prior year which
resulted in complex customer journeys. Proforma(5) NGR was in line cc(2) year
on year with Online +1%cc(2) but Retail -4%cc(2).
Contribution in the first half of £1,194.2m was also +6% higher than 2023.
Contribution margin was in line with 2023 reflecting the benefit of geographic
mix on the blended margin offset by investment in marketing as the Group
targets the return to sustainable long term Online NGR growth.
Operating costs were 7% higher due to the impact of acquisitions. Resulting
underlying EBITDA(3) of £523.8m was +5% higher than 2023.
Share based payment charges were £0.2m lower than last year, while underlying
depreciation and amortisation was 26% higher, reflecting the impact of the
annualisation of prior year acquisitions and continued investment in product.
Share of JV losses of £57.3m includes an operating loss of £55.7m relating
to BetMGM (2023: £48.5m).
Group underlying operating profit(4) was -6% behind 2023. After separately
disclosed items of £224.5m (2023: £733.4m), the Group made an operating
profit of £63.4m (2023: loss of £426.0m).
UK & Ireland
UK & Ireland Total UK & Ireland Online UK & Ireland Retail
Six months to 30 June H1 H1 Change H1 H1 Change H1 H1 Change
2024 2023 % 2024 2023 % 2024 2023 %
£m £m £m £m £m £m
Sports wagers 2,500.4 2,768.2 (10%) 1,141.0 1,368.2 (17%) 1,359.4 1,400.0 (3%)
Sports margin 16.6% 15.8% 0.8pp 13.2% 12.3% 0.9pp 19.4% 19.3% 0.1pp
Sports NGR 393.5 414.4 (5%) 127.5 138.5 (8%) 266.0 275.9 (4%)
Gaming NGR 611.2 655.1 (7%) 339.4 369.2 (8%) 271.8 285.9 (5%)
B2B NGR - - - - - - - - -
Total NGR 1,004.7 1,069.5 (6%) 466.9 507.7 (8%) 537.8 561.8 (4%)
EU VAT/GST (2.1) (2.0) (5%) (2.1) (2.0) (5%) - - -
Revenue 1,002.6 1,067.5 (6%) 464.8 505.7 (8%) 537.8 561.8 (4%)
Gross profit 680.3 726.4 (6%) 295.1 318.5 (7%) 385.2 407.9 (6%)
Contribution 553.2 603.5 (8%) 169.2 197.3 (14%) 384.0 406.2 (5%)
Contribution margin 55.1% 56.4% (1.3pp) 36.2% 38.9% (2.7pp) 71.4% 72.3% (0.9pp)
Operating costs (353.8) (361.5) 2% (81.7) (80.5) (1%) (272.1) (281.0) 3%
Underlying EBITDA(3) 199.4 242.0 (18%) 87.5 116.8 (25%) 111.9 125.2 (11%)
Share based payments (3.2) (3.2) 0% (2.2) (2.2) 0% (1.0) (1.0) 0%
Underlying depreciation and amortisation (72.9) (66.5) (10%) (24.0) (21.3) (13%) (48.9) (45.2) (8%)
Share of JV (loss)/income - - - - - - - - -
Underlying operating profit(4) 123.3 172.3 (28%) 61.3 93.3 (34%) 62.0 79.0 (22%)
During the first half, we made good operational progress in the UK as we
simplify customer journeys, develop plans to further leverage the omni-channel
offering and prioritise our product development roadmap. Whilst we are seeing
improvements in underlying KPI's, NGR in the first half was down -6%
reflecting prior year regulatory implementation which resulted in complex
customer journeys.
In Online, NGR was -8% year on year with both sports and gaming behind -8%.
Prior year AML measures, which led to complex customer journeys, as well as
limited product development, have continued to weigh on the business during
the period impacting year on year comparisons. Despite the decline in NGR, we
have made good operational progress during the half including stemming the run
rate decline in Online revenues, improving our sportsbook user experience and
onboarding our new management team and we remain confident in our ability to
return to Online NGR growth by the end of the year.
In Retail, H1 NGR was -4%cc(2) YoY (LFL -3%), with sports -3%cc(2) and gaming
-5%cc(2). Whilst NGR was behind year on year in the first half, performance
was in line with expectations and reflects the timing of cabinet refresh
cycles versus competitors, with our new, next generation Kascada cabinets
expected to be fully rolled out in Q3. H1 2024 NGR was up 3% compared to H2
2023.
Gross profit of £680.3m was £46.1m behind 2023 with margin of 68% in line
year on year. Marketing spend was £4.2m higher than 2023 despite the
reduction in NGR, resulting in contribution of £553.2m, down £50.3m versus
2023.
Operating costs were 2% lower than 2023 reflecting underlying inflation in
Online offset by stringent cost control and the impact of shop closures in
Retail. Resulting EBITDA(3) of £199.4m was £42.6m behind 2023. After
charging depreciation and share based payments, operating profit(4) of
£123.3m was £49.0m behind 2023 with increased depreciation charges a
reflection of the recent investment in our product offerings across both
channels.
After separately disclosed items of £6.9m (2023: £3.5m), the operating
profit was £116.4m (2023: £168.8m).
International
International Total International Online International Retail
Six months to 30 June H1 H1 Change H1 H1 Change H1 H1 Change
2024 2023 % 2024 2023 % 2024 2023 %
£m £m £m £m £m £m
Sports wagers 6,172.8 5,817.8 6% 5,356.1 5,097.1 5% 816.7 720.7 13%
Sports margin 14.6% 14.8% (0.2pp) 14.1% 14.2% (0.1pp) 17.6% 19.1% (1.5pp)
Sports NGR 760.2 699.0 9% 615.4 561.1 10% 144.8 137.9 5%
Gaming NGR 518.5 508.1 2% 505.2 495.9 2% 13.3 12.2 9%
B2B NGR 40.1 23.8 68% 40.1 23.8 68% - - -
Total NGR 1,318.8 1,230.9 7% 1,160.7 1,080.8 7% 158.1 150.1 5%
EU VAT/GST (33.3) (24.7) (35%) (30.6) (24.1) (27%) (2.7) (0.6) (350%)
Revenue 1,285.5 1,206.2 7% 1,130.1 1,056.7 7% 155.4 149.5 4%
Gross profit 717.4 660.7 9% 654.9 599.0 9% 62.5 61.7 1%
Contribution 519.5 459.7 13% 461.9 401.7 15% 57.6 58.0 (1%)
Contribution margin 39.4% 37.3% 2.1pp 39.8% 37.2% 2.6pp 36.4% 38.6% (2.2pp)
Operating costs (218.5) (187.9) (16%) (182.2) (156.6) (16%) (36.3) (31.3) (16%)
Underlying EBITDA(3) 301.0 271.8 11% 279.7 245.1 14% 21.3 26.7 (20%)
Share based payments (2.5) (2.5) 0% (2.5) (2.5) 0% - - -
Underlying depreciation and amortisation (87.2) (63.9) (36%) (69.3) (49.5) (40%) (17.9) (14.4) (24%)
Share of JV (loss)/income (0.9) (0.3) (200%) (0.9) (0.3) (200%) - - -
Underlying operating profit(4) 210.4 205.1 3% 207.0 192.8 7% 3.4 12.3 (72%)
International NGR in the first half was +7% and +10%cc(2) ahead of 2023,
+3%cc(2) proforma(5), with strong underlying performance in all of our key
markets except for Italy, where sports margin was -2pp behind the prior year
due to customer friendly results in domestic football. Within International,
Online NGR was +7% ahead and +11%cc(2) (proforma(5) +4%cc(2)) and Retail +5%
ahead and +8%cc(2) (-4%cc(2) behind proforma(5) due to Italian margins).
In Brazil, NGR was +28%cc(2) ahead of 2023 reflecting the benefit of the
corrective actions taken in 2023 and into 2024. During H1 we have seen
improvements in customer acquisition and retention as well as an increase in
volumes of deposits and withdrawals, all of which illustrate customer
engagement since the change in management of the region. We remain confident
in our ability to regain share in this important growth market.
Online NGR in Australia was in line(2) with 2023 despite the softer market
conditions and last year's introduction of BetStop, the National
Self-Exclusion Register. We remain confident in our strategy focussing on
brand differentiation, new and innovative products and customer experience and
our return to growth in Q2 demonstrates that this continues to resonate with
our customer base.
Italy NGR was -3%cc(2) behind 2023, Online -3%cc(2) and Retail -4%cc(2), as
customer friendly results were partially offset by volume growth in both
channels.
New Zealand NGR was -2%cc(2) behind 2023 on a proforma(5) basis, with Online
+1% cc(2) and Retail down -10%cc(2). We remain optimistic about the
opportunity for our New Zealand partnership with the successful migration to
the Australian platform late in H1, an improved customer proposition, and the
launch of a second local brand during H2 key catalysts for future growth.
Baltics and Nordics Online NGR was +8%cc(2) year on year with inflationary
pressures in the region starting to abate and our content leadership strategy
paying dividends. In Germany, our business has stabilised with H1 NGR -1%cc(2)
year on year and +7%cc(2) versus H2 2023, as we start to see non-compliant
operators leave the market.
Proforma(5) NGR in the Netherlands was -13%cc(2) behind the prior year
following regulatory changes in H2 last year. Whilst our BetCity business
continues to grow actives in line with the market, declining spend per head is
impacting performance.
Georgia NGR was +11%cc(2) ahead of 2023
as the business continues to benefit from its innovative approach to
marketing, its sponsorship of the national football league and its branded
network of affiliated companies.
Resulting gross profit for International, was 9% ahead of 2023 due to the NGR
outperformance and a favourable geographic mix. With marketing spend held
broadly in line with 2023 levels despite increased NGR, contribution margin
increased by +2.1pp over 2023 leaving contribution at £519.5m.
Operating costs were -16% higher year on year, as a result of inflation and
the annualisation of 2023 acquisitions (13pp). Resulting EBITDA(3) of £301.0m
was £29.2m ahead of 2023 and after deducting depreciation and share based
payments, operating profit(4) was £210.4m, £5.3m ahead. The increase in
depreciation has largely been driven by the annualisation of 2023 acquisitions
and the New Zealand partnership.
After separately disclosed items of £96.2m (2023: £71.4m), the operating
profit was £114.2m (2023: £133.7m).
CEE (Croatia and Poland)
CEE Total CEE Online CEE Retail
Six months to 30 June H1 H1 Change H1 H1 Change H1 H1 Change
2024 2023 % 2024 2023 % 2024 2023 %
£m £m £m £m £m £m
Sports wagers 794.3 259.7 206% 667.2 209.0 219% 127.1 50.7 151%
Sports margin 22.9% 17.5% 5.4pp 22.1% 15.6% 6.5pp 26.9% 25.4% 1.5pp
Sports NGR 181.4 58.0 213% 144.3 42.4 240% 37.1 15.6 138%
Gaming NGR 59.5 48.7 22% 54.2 43.8 24% 5.3 4.9 8%
B2B NGR - - - - - - - - -
Total NGR 240.9 106.7 126% 198.5 86.2 130% 42.4 20.5 107%
EU VAT/GST - - - - - - - - -
Revenue 240.9 106.7 126% 198.5 86.2 130% 42.4 20.5 107%
Gross profit 136.9 70.6 94% 109.9 56.2 96% 27.0 14.4 88%
Contribution 121.5 67.9 79% 95.7 53.9 78% 25.8 14.0 84%
Contribution margin 50.4% 63.6% (13.2pp) 48.2% 62.5% (14.3pp) 60.8% 68.3% (7.5pp)
Operating costs (36.8) (15.4) (139%) (18.1) (6.3) (187%) (18.7) (9.1) (105%)
Underlying EBITDA(3) 84.7 52.5 61% 77.6 47.6 63% 7.1 4.9 45%
Share based payments - - - - - - - - -
Underlying depreciation and amortisation (9.2) (2.6) (254%) (5.7) (0.1) n/m (3.5) (2.5) (40%)
Share of JV (loss)/income - - - - - - - - -
Underlying operating profit(4) 75.5 49.9 51% 71.9 47.5 51% 3.6 2.4 50%
Following the acquisition of STS in Poland during H2 2023, H1 NGR was +126%
ahead of the prior year (+131%cc(2)). On a proforma(5) basis, CEE NGR was
+12%cc(2) ahead of the prior year.
NGR in Croatia was +17%cc(2) ahead of 2023 with our SuperSport brand
continuing to perform well in a competitive market. Online NGR was +19%cc(2)
ahead with Retail +6%cc(2). During the first half we further enhanced our
customer proposition with the introduction of our live score app and stat
centre, the roll out of our new SSBTs and the launch of a new SuperSpin reward
tool. This continued evolution of our proposition remains key in maintaining
our position as the clear market leader.
Proforma(5) NGR in Poland was +8%cc(2) ahead of 2023 with Online +7%cc(2) and
Retail +10%cc(2). The intensity of the competitive landscape in Poland has
increased significantly in the last nine months and we are therefore pleased
with the progress and growth that the business has delivered throughout that
period.
Gross profit of £136.9m was +94% ahead of 2023. Whilst gross profit margin of
56.8% was -9pp behind 2023, this reflects the impact of the acquired Polish
business on the blended CEE segment rather than an underlying reduction in
margin. Marketing spend of £15.4m was £12.7m higher than 2023 reflecting
both the impact of the acquisition of STS in Poland and additional spend in
Croatia in order to support the underlying growth in NGR. Resulting
contribution of £121.5m was +79% ahead of 2023, a margin of 50.4%.
Operating costs were £21.4m higher than 2023, as a result of costs associated
with the acquired Polish business and inflation in Croatia. Resulting
EBITDA(3) of £84.7m was £32.2m ahead of the prior year, up +61% or up
+4%cc(2) on a proforma(5) basis. After charging depreciation of £9.2m,
operating profit(4) was £75.5m, £25.6m ahead of 2023. The increase in
depreciation is due to the impact of the acquired Polish business.
After separately disclosed items of £85.7m (2023: £42.0m), the operating
loss was £10.2m (2023: profit of £7.9m).
New Opportunities
Reported results(1)
Six months to 30 June 2024 2023 Change
£m £m %
Underlying EBITDA(3) - (9.7) 100%
Share based payments - - -
Underlying depreciation and amortisation - (1.6) 100%
Share of JV loss - - -
Underlying operating loss(4) - (11.3) 100%
Reported Results(1):
Costs in the prior year reflect those incurred in the Group's former Unikrn
business which has now been closed as a customer facing operation.
Corporate
Reported results(1)
Six months to 30 June 2024 2023 Change
£m £m %
Underlying EBITDA(3) (61.3) (57.2) (7%)
Share based payments (3.2) (3.4) 6%
Underlying depreciation and amortisation (0.4) (0.2) (100%)
Share of JV loss (56.4) (47.8) (18%)
Underlying operating loss(4) (121.3) (108.6) (12%)
Reported Results(1):
Corporate underlying costs(3) of £61.3m were £4.1m higher than last year
driven by the timing of certain legal costs as well as underlying inflation.
After share based payments, depreciation and amortisation and share of JV
losses, Corporate underlying operating loss(4) was £121.3m, an increase of
£12.7m. The increase in loss is driven by underlying cost increase and an
£7.2m increase in the share of loss in the US JV, BetMGM. After separately
disclosed items of £35.7m (2023: £616.5m), the operating loss of £157.0m
(2023: £725.1m) was £568.1m lower than in 2023.
Notes
(1) 2024 reported results are unaudited and relate to continuing operations
(2) Growth on a constant currency basis is calculated by translating both
current and prior year performance at the 2024 exchange rates
(3) EBITDA is defined as earnings before interest, tax, depreciation and
amortisation, share based payments and share of JV income. EBITDA is stated
pre separately disclosed items
(4) Stated pre separately disclosed items
(5) Proforma references include all 2023 acquisitions as if they had been
part of the Group since 1 January 2023
GROUP PROFIT AND LOSS
Results(1)
Period ended 30 June 2024 2023 Change CC(2)
£m £m % %
NGR 2,555.7 2,404,3 6% 8%
Revenue 2,520.3 2,377.6 6% 8%
Gross profit 1,534.6 1,457.7 5%
Contribution(4) 1,194.2 1,126.2 6%
Underlying EBITDA(5) 523.8 499.4 5%
Share based payments (8.9) (9.1) 2%
Underlying depreciation and amortisation (169.7) (134.8) (26%)
Share of JV loss (57.3) (48.1) (19%)
Underlying operating profit(6) 287.9 307.4 (6%)
Net underlying finance costs(6) (129.5) (108.4)
Net foreign exchange/financial instruments 90.4 88.6
Profit before tax pre separately disclosed items 248.8 287.6
Separately disclosed items:
Amortisation of acquired intangibles (148.8) (110.2)
Recognition of HMRC settlement liability (5.9) (585.0)
Other (121.7) (40.5)
Loss before tax (27.6) (448.1)
Tax (19.3) (54.4)
Loss after tax from continuing activities (46.9) (502.5)
Discontinued operations - (3.7)
Loss after tax (46.9) (506.2)
NGR and Revenue
Group NGR and revenue were +6% ahead of the prior year (+8%cc(2)). Further
details are provided in the Financial Performance Review section.
Underlying operating profit(6)
Group reported underlying operating profit(6) of £287.9m was -6% behind 2023
(2023: £307.4m). Underlying EBITDA(5) was +5% ahead, with the benefit of
acquisitions and strong performance in a number of key markets offset in
particular by the UK. Depreciation and amortisation was -26% higher than 2023
driven largely by acquired businesses as well as recent investments in product
and technology. The Group's share of BetMGM losses in the period were £55.7m,
£7.2m higher than 2023 as the business continues to invest in gaining share.
Further analysis of the Group's performance for the period is detailed in the
Financial Performance Review section.
Financing costs
Underlying finance costs of £129.5m (2023: £108.4m) excluding separately
disclosed items of £51.9m (2023: £2.3m) were £21.1m higher than 2023 driven
by interest on the increase in Group debt as well as higher average interest
rates during the current year.
Net gains on financial instruments were £90.4m (2023: £88.6m) relating
predominantly to a foreign exchange gain on re-translation of post swap debt.
This gain is offset by a foreign exchange loss on the translation of assets in
overseas subsidiaries which is recognised in reserves and forms part of the
Group's commercial hedging strategy.
Separately disclosed items
Items separately disclosed before tax for the period amount to £276.4m (2023:
£735.7m) and relate to £5.9m of discount unwind on the DPA settlement
liability (2023: £585m charge for the initial recognition of the liability),
£148.8m of amortisation on acquired intangibles (2023: £110.2m), a £22.7m
(2023: £nil) non-cash impairment of certain New Zealand assets following the
migration of the trading platform and £18.8m of restructuring costs (2023:
£6.8m) including those associated with Project Romer.
The Group also recorded a £7.9m charge (2023: £5.6m) associated with ongoing
costs in relation to the DPA and our disposed Intertrader business, £20.4m
(2023: £13.6m) associated with the revaluation of contingent consideration
and a £51.9m (2023: £2.3m) non-cash issue cost write off following the
refinancing of the Group's debt in Q2.
In the prior period the Group also incurred corporate transaction costs of
£12.2m.
Separately disclosed items
2024 2023
£m £m
Legal settlement (5.9) (585.0)
Amortisation of acquired intangibles (148.8) (110.2)
Impairment (22.7) -
Restructuring costs (18.8) (6.8)
Legal and onerous contract costs (7.9) (5.6)
Movement in fair value of contingent consideration (20.4) (13.6)
Corporate transaction costs - (12.2)
Other including financing (51.9) (2.3)
Total (276.4) (735.7)
Profit/(loss) before tax
The Group's profit before tax(6) and separately disclosed items was £248.8m
(2023: £287.6m), a decrease of £38.8m on the prior year. After charging
separately disclosed items, the Group recorded a pre-tax loss from continuing
operations of £27.6m (2023: £448.1m), with the separately disclosed costs
discussed above having a significant impact on reported results.
Taxation
The tax charge on continuing operations for the period was £19.3m (2023:
£54.4m), reflecting an underlying effective tax rate pre-BetMGM losses and
foreign exchange gains on external debt of 27.4% (2023: 24.1%) and a tax
credit on separately disclosed items of £50.9m (2023: £16.1m).
The underlying effective tax rate on continuing operations for the full year
ended 31 December 2024, excluding the results of BetMGM and foreign exchange
on financing items, is forecast to be c25%.
Discontinued operations
During the prior period, the Group recorded a £3.7m loss in discontinued
operations relating to its disposed Intertrader business which was disposed of
in November 2021.
The resulting loss after tax after discontinued operations was £46.9m (2023:
£506.2m).
Cashflow
Period ended 30 June 2024 2023
£m £m
Cash generated by operations 459.2 497.9
Corporation tax (48.2) (71.2)
Interest (127.8) (65.2)
Net cash generated from operating activities 283.2 361.5
Cash flows from investing activities:
Acquisitions & disposals (0.2) (474.9)
Cash acquired/disposed - 43.2
Dividends received from associates 0.8 -
Net capital expenditure (141.5) (130.2)
Investment in Joint ventures (19.8) (40.7)
Net cash used in investing activities (160.7) (602.6)
Cash flows from financing activities:
Equity issue - 590.6
Net proceeds from borrowings 1,687.2 1,142.8
Repayment of borrowings (1,395.5) (1,007.8)
Subscription of funds from non-controlling interest - 129.0
Settlement of financial instruments and other financial liabilities (11.0) (204.8)
Repayment of finance leases (35.5) (35.0)
Equity dividends paid (56.9) (50.1)
Minority dividends paid (0.3) (3.4)
Net cash used in financing activities 188.0 561.3
Foreign exchange (5.4) (14.1)
Net increase in cash 305.1 306.1
During the period, the Group had a net cash inflow of £305.1m (2023:
£306.1m).
Net cash generated by operations was £283.2m (2023: £361.5m) including
£523.8m of underlying EBITDA(5) (2023: £499.4m) and an underlying working
capital inflow, offset by a cash outflow on separately disclosed items,
corporate taxes of £48.2m (2023: £71.2m) and £127.8m in interest (2023:
£65.2m).
Net cash used in investing activities for the period was £160.7m (2023:
£602.6m) and includes net cash outflows for acquisitions of £0.2m excluding
payments under contingent consideration arrangements (2023: £431.7m), net
investment in capital expenditure of £141.5m (2023: £130.2m) and an
additional £19.8m invested in BetMGM (2023: £40.7m). The Group also received
dividends from associates of £0.8m (2023: £nil).
During the period the Group received a net £188.0m (2023: £561.3m) from
financing activities with £1,687.2m received through new financing facilities
(2023: £1,142.8m) which were used, in part, to repay £1,395.5m of debt
(2023: £1,007.8m). In the prior period £590.6m was raised through the equity
issuance and the Group also received £129.0m from minority holdings to meet
their obligations for earn-outs and acquisitions within Entain CEE. During the
half, £11.0m was paid on settlement of other financial instruments and
liabilities relating to contingent consideration on previous acquisitions,
partially offset by a receipt on the settlement on a number of swap
arrangements (2023: £204.8m). Lease payments of £35.5m (2023: £35.0m)
including those on non-operational shops, were also made in the period.
During the period, the Group paid £56.9m in equity dividends (2023: £50.1m)
and £0.3m in dividends to minority interests (2023: £3.4m).
Net debt and liquidity
As at 30 June 2024, adjusted net debt(7) was £3,329.3m and represented an
adjusted net debt(7) to underlying EBITDA(5) ratio of 3.2x. The Group has not
drawn down on the revolving credit facility at 30 June 2024 (2023: £nil).
Par value Issue costs/ Premium Total
£m £m £m
Term loans (3,704.4) 11.6 (3,692.8)
Interest accrual (2.1) - (2.1)
(3,706.5) 11.6 (3,694.9)
Cash 705.7
Net debt (2,989.2)
Cash held on behalf of customers (201.3)
Fair value of swaps held against debt instruments (58.5)
Other debt related items* 194.0
Lease liabilities (274.3)
Adjusted net debt (3,329.3)
*Other debt related items include balances held with payment service
providers, deposits and other similar items
Refinancing
On 14 May 2024, the Group raised an additional £600m of borrowings through
add-ons to its existing USD and EUR term loans, and used part of the proceeds
to repay all amounts drawn under the £300m bridging loan. In March 2024, the
commitments available under the Group's revolving credit facility were
increased by £45m, further increasing the Group's available liquidity. As
such, the Group's revolving credit facility now has total commitments of
£635m which, as at 30 June 2024, was completely undrawn save £5m utilised
for letters of credit and guarantees.
Going Concern
In adopting the going concern basis of preparation in the financial
statements, the Directors have considered the current trading performance of
the Group, the financial forecasts and the principal risks and uncertainties.
In addition, the Directors have considered all matters discussed in connection
with the long-term viability statement including the modelling of 'severe but
plausible' downside scenarios such as legislation changes impacting the
Group's Online business and severe data privacy and cybersecurity breaches.
Given the level of the Group's available cash post the recent extension of
certain financing facilities and the forecast covenant headroom even under the
sensitised downside scenarios, the Directors believe that the Group and the
Company are well placed to manage the risks and uncertainties that it faces.
As such, the Directors have a reasonable expectation that the Group and the
Company will have adequate financial resources to continue in operational
existence, for at least 12 months (being the going concern assessment period)
from date of approval of the financial statements, and have, therefore,
considered it appropriate to adopt the going concern basis of preparation in
the financial statements.
Notes
(1) 2024 statutory results are unaudited, with the tables presented
relating to continuing operations and including both statutory and
non-statutory measures
(2) Growth on a constant currency basis is calculated by translating both
current and prior year performance at the 2024 exchange rates
(3) Proforma references include all 2023 acquisitions as if they had been
part of the Group since 1 January 2023
(4) Contribution represents gross profit less marketing costs and is a key
performance metric used by the Group, particularly in Online
(5) EBITDA is earnings before interest, tax, depreciation and
amortisation, share based payments and share of JV income. EBITDA is stated
pre separately disclosed items
(6) Stated pre separately disclosed items
(7) Adjusted net debt excludes the DPA settlement. Leverage also excludes
any benefit from future BetMGM EBITDA or the payments due to acquire the
minority interests in Entain CEE
UNAUDITED FINANCIAL STATEMENTS
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June
2024 ( ) 2023
Notes Underlying Separately disclosed items Total Underlying Separately disclosed items Total
items (Note 4) £m items (Note 4) £m
£m £m £m £m
NGR 2,555.7 - 2,555.7 2,404.3 - 2,404.3
VAT/GST (35.4) - (35.4) (26.7) - (26.7)
Revenue 2,520.3 - 2,520.3 2,377.6 - 2,377.6
Cost of sales (985.7) - (985.7) (919.9) - (919.9)
Gross profit 1,534.6 - 1,534.6 1,457.7 - 1,457.7
Administrative costs (1,189.4) (224.5) (1,413.9) (1,102.2) (733.4) (1,835.6)
Contribution 1,194.2 - 1,194.2 1,126.2 - 1,126.2
Administrative costs excluding marketing (849.0) (224.5) (1,073.5) (770.7) (733.4) (1,504.1)
Group operating profit/(loss) before share of results from joint ventures and 345.2 (224.5) 120.7 355.5 (733.4) (377.9)
associates
Share of results from joint venture and associates (57.3) - (57.3) (48.1) - (48.1)
Group operating profit/(loss) 287.9 (224.5) 63.4 307.4 (733.4) (426.0)
Finance expense 5 (136.5) (51.9) (188.4) (112.2) (2.3) (114.5)
Finance income 5 7.0 - 7.0 3.8 - 3.8
Gains/(losses) arising from financial instruments 5 77.8 - 77.8 (23.0) - (23.0)
Gains arising from foreign exchange on debt instruments 5 12.6 - 12.6 111.6 - 111.6
Profit/(loss) before tax 248.8 (276.4) (27.6) 287.6 (735.7) (448.1)
Income tax (expense)/credit 6 (70.2) 50.9 (19.3) (70.5) 16.1 (54.4)
Profit/(loss) from continuing operations 178.6 (225.5) (46.9) 217.1 (719.6) (502.5)
Loss for the period from discontinued operations after tax - - - - (3.7) (3.7)
Profit/(loss) for the period 178.6 (225.5) (46.9) 217.1 (723.3) (506.2)
Attributable to:
Equity holders of the parent 158.5 (201.7) (43.2) 206.9 (708.0) (501.1)
Non-controlling interests 20.1 (23.8) (3.7) 10.2 (15.3) (5.1)
Earnings per share on profit/(loss) for the period from continuing 8 12.5p (6.8)p 21.8p (83.9)p
operations(1)
From profit/(loss) for the period(1) 12.5p (6.8)p 21.8p (84.5)p
Diluted earnings per share on profit/(loss) for the period from continuing 8 12.4p (6.8)p 21.6p (83.9)p
operations(1)
From profit/(loss) for the period(1) 12.4p (6.8)p 21.6p (84.5)p
Memo: 2024 ( ) 2023
Underlying Separately disclosed items Total Underlying Separately disclosed items Total
items £m £m items £m £m
£m £m
EBITDA 523.8 (53.0) 470.8 499.4 (623.2) (123.8)
Share based payments (8.9) - (8.9) (9.1) - (9.1)
Depreciation, amortisation and impairment (169.7) (171.5) (341.2) (134.8) (110.2) (245.0)
Share of results from joint ventures and associates (57.3) - (57.3) (48.1) - (48.1)
Group operating profit/(loss) 287.9 (224.5) 63.4 307.4 (733.4) (426.0)
1. The calculation of underlying earnings per share has been adjusted
for separately disclosed items, and for the removal of foreign exchange
volatility arising on financial instruments as it provides a better
understanding of the underlying performance of the Group. See Note 8 for
further details.
The accompanying notes form part of these financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended Six months ended
30 June 30 June
2024 2023
£m £m
Loss for the period (46.9) (506.2)
Other comprehensive income:
Items that may be reclassified to profit or loss:
Currency translation losses (87.7) (164.3)
Total items that will be reclassified to profit or loss (87.7) (164.3)
Items that will not be re-classified to profit or loss:
Changes in the fair value of equity instruments at fair value through other 0.7 0.1
comprehensive income
Re-measurement of defined benefit pension scheme (2.3) (4.6)
Tax on re-measurement of defined benefit pension scheme 3.4 1.6
Total items that will not be reclassified to profit or loss 1.8 (2.9)
Other comprehensive expense for the period, net of tax (85.9) (167.2)
Total comprehensive expense for the period (132.8) (673.4)
Attributable to:
- equity holders of the parent (116.1) (661.2)
- non-controlling interests (16.7) (12.2)
The accompanying notes form part of these financial statements.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEET
30 June 31 December 30 June
2024 2023 2023
Note £m £m £m
ASSETS
Non-current assets
Goodwill 4,637.3 4,716.0 4,362.3
Intangible assets 3,737.3 3,960.1 3,703.3
Property, plant and equipment 530.8 533.4 518.1
Interest in joint venture - - -
Interest in associates and other investments 45.4 47.1 55.1
Trade and other receivables 31.2 31.8 44.0
Deferred tax assets 512.0 493.2 488.2
Retirement benefit assets 60.2 61.8 60.0
9,554.2 9,843.4 9,231.0
Current assets
Trade and other receivables 512.1 503.2 502.7
Income and other taxes recoverable 85.3 71.5 42.5
Derivative financial instruments 13 19.8 31.9 70.4
Cash and cash equivalents 705.7 400.6 964.6
1,322.9 1,007.2 1,580.2
TOTAL ASSETS 10,877.1 10,850.6 10,811.2
LIABILITIES
Current liabilities
Trade and other payables (972.9) (878.6) (823.9)
Balances with customers (201.3) (196.8) (196.5)
Lease liabilities (65.0) (65.7) (69.2)
Interest bearing loans and borrowings (26.6) (319.2) (613.1)
Corporate tax liabilities (85.8) (48.6) (59.9)
Provisions (21.4) (20.9) (146.8)
Derivative financial instruments 13 (78.3) (117.5) (100.4)
Deferred and contingent consideration and other financial liabilities 13 (169.7) (157.0) (121.4)
(1,621.0) (1,804.3) (2,131.2)
Non-current liabilities
Trade and other payables (346.5) (433.8) -
Interest bearing loans and borrowings (3,668.3) (3,038.8) (2,567.9)
Lease liabilities (209.3) (210.2) (206.7)
Deferred tax liabilities (779.8) (825.1) (794.5)
Provisions (14.4) (4.2) (465.2)
Deferred and contingent consideration and other financial liabilities 13 (1,625.9) (1,741.5) (1,457.0)
(6,644.2) (6,253.6) (5,491.3)
TOTAL LIABILITIES (8,265.2) (8,057.9) (7,622.5)
NET ASSETS 2,611.9 2,792.7 3,188.7
EQUITY
Issued share capital 5.2 5.2 5.2
Share premium 1,796.7 1,796.7 1,796.7
Merger reserve 2,527.4 2,527.4 2,527.4
Translation reserve 75.7 150.4 83.1
Retained deficit (2,300.6) (2,211.7) (1,520.9)
Equity shareholder's funds 2,104.4 2,268.0 2,891.5
Non-controlling interests 507.5 524.7 297.2
TOTAL SHAREHOLDERS' EQUITY 2,611.9 2,792.7 3,188.7
The accompanying notes form part of these financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued Share Translation reserve(1) Retained deficit Equity shareholders Non-controlling interest Total
share capital premium funds shareholders
Merger equity
Reserve
£m £m £m £m £m £m £m £m
At 1 January 2023 4.8 1,207.3 2,527.4 240.2 (846.9) 3,132.8 183.8 3,316.6
Profit for the period - - - - (501.1) (501.1) (5.1) (506.2)
Other comprehensive expense - - - (157.2) (2.9) (160.1) (7.1) (167.2)
Total comprehensive expense - - - (157.2) (504.0) (661.2) (12.2) (673.4)
Share options exercised - - - - - - -
Share-based payments charge - - - - 9.1 9.1 - 9.1
Equity dividends - - - - (50.1) (50.1) (3.4) (53.5)
Equity issue 0.4 589.5 - - - 589.9 - 589.9
Transactions with minority interest - - - - (129.0) (129.0) 129.0 -
At 30 June 2023 5.2 1,796.8 2,527.4 83.0 (1,520.9) 2,891.5 297.2 3,188.7
At 1 January 2024 5.2 1,796.7 2,527.4 150.4 (2,211.7) 2,268.0 524.7 2,792.7
Loss for the period - - - - (43.2) (43.2) (3.7) (46.9)
Other comprehensive expense - - - (74.7) 1.8 (72.9) (13.0) (85.9)
Total comprehensive expense - - - (74.7) (41.4) (116.1) (16.7) (132.8)
Share options exercised - - - - - - -
Share-based payments charge - - - - 9.4 9.4 - 9.4
Equity dividends - - - - (56.9) (56.9) - (56.9)
Dividends to minority shareholders - - - - - - (0.3) (0.3)
Purchase of non-controlling interest - - - - - - (0.2) (0.2)
At 30 June 2024 5.2 1,796.7 2,527.4 75.7 (2,300.6) 2,104.4 507.5 2,611.9
1. The translation reserve is used to record exchange
differences arising from the translation of the financial statements of
foreign subsidiaries with non-sterling functional currencies.
The accompanying notes form part of these financial statements.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended Six months ended
30 June 2024 30 June 2023
Notes £m £m
Cash generated by operations 11 459.2 497.9
Income taxes paid (48.2) (71.2)
Net finance expense paid (127.8) (65.2)
Net cash generated from operating activities 283.2 361.5
Cash flows from investing activities:
Acquisitions(1) (0.2) (474.9)
Cash acquired on business combinations - 43.2
Dividends received from associates 0.8 -
Purchase of intangible assets (96.7) (92.0)
Purchase of property, plant and equipment (44.8) (38.2)
Investment in joint venture (19.8) (40.7)
Net cash used in investing activities (160.7) (602.6)
Cash flows from financing activities:
Proceeds from issue of ordinary shares - 590.6
Net proceeds from borrowings 1,687.2 1,142.8
Repayment of borrowings (1,395.5) (1,007.8)
Subscription of equity from non-controlling interests - 129.0
Settlement of derivative financial instruments 51.0 -
Settlement of other financial liabilities (62.0) (204.8)
Payment of lease liabilities (35.5) (35.0)
Dividend paid to shareholders (56.9) (50.1)
Dividends paid to non-controlling interests (0.3) (3.4)
Net cash utilised from financing activities 188.0 561.3
Net decrease in cash and cash equivalents 310.5 320.2
Effect of changes in foreign exchange rates (5.4) (14.1)
Cash and cash equivalents at beginning of the period 400.6 658.5
Cash and cash equivalents at end of the period 705.7 964.6
1. Included within cash flows from
acquisitions is £0.2m (2023: £nil) relating to the purchase of minority
holdings.
The accompanying notes form part of these financial statements.
1. Corporate information
Entain plc ("the Company") is a public limited company incorporated and
domiciled in the Isle of Man whose shares are publicly traded. The principal
activities of the Company and its subsidiaries ("the Group") are described in
Note 3.
2. Basis of preparation
In adopting the going concern basis of preparation in the financial
statements, the Directors have considered the current trading performance of
the Group, the financial forecasts and the principal risks and uncertainties.
In addition, the Directors have considered all matters discussed in connection
with the long-term viability statement including the modelling of 'severe but
plausible' downside scenarios such as legislation changes impacting the
Group's Online business and severe data privacy and cybersecurity breaches.
Given the level of the Group's available cash post the recent extension of
certain financing facilities and the forecast covenant headroom even under the
sensitised downside scenarios, the Directors believe that the Group and the
Company are well placed to manage the risks and uncertainties that it faces.
As such, the Directors have a reasonable expectation that the Group and the
Company will have adequate financial resources to continue in operational
existence, for at least 12 months (being the going concern assessment period)
from date of approval of the financial statements, and have, therefore,
considered it appropriate to adopt the going concern basis of preparation in
the financial statements.
(a) The Condensed Interim Financial Statements have been prepared in
accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority and with International Accounting Standards 34
'Interim Financial Reporting' as issued by the International Accounting
Standards Board. It should be read in conjunction with the Annual Report and
Accounts for the year ended 31 December 2023, which were prepared in
accordance with applicable law and International Financial Reporting Standards
as issued by the International Accounting Standards Board.
The Condensed Interim Financial Statements are not statutory accounts within
the meaning of the Isle of Man Companies Act 2006 and do not include all of
the information and disclosures required for full annual financial statements.
It should be read in conjunction with the Annual Report and Accounts of Entain
plc for the year ended 31 December 2023 which were filed with the Registrar of
Companies in the Isle of Man. This report is available either on request from
the Company's registered office or to download from
https://entaingroup.com/investor-relations/financial-reports/
(https://entaingroup.com/investor-relations/financial-reports/) . The
auditor's report on these accounts was unqualified, did not include a
reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report, and did not contain a statement
under the Isle of Man Companies Act 2006.
The accounting policies adopted in the preparation of the interim financial
statements are consistent with those followed in the preparation of the
Group's annual financial statements for the year ended 31 December 2023 other
than those listed in 2(f).
The financial statements are presented in million Pounds Sterling, rounded to
one decimal place.
The interim financial information was approved by a duly appointed and
authorised committee of the Board of Directors on 8 August 2024 and is
unaudited but have been reviewed by the Group's auditor.
(b) Critical judgements and estimates
In preparing these Condensed Consolidated Interim Financial Statements, the
Group has made its best estimates and judgements of certain amounts included
in the financial statements, giving due consideration to materiality. The
Group regularly reviews these estimates and updates them as required.
The existing critical accounting estimates, assumptions and judgements set out
in note 4.2 of the Group's Annual Report and Accounts for the 12 months ended
31 December 2023 remain relevant to these Condensed Consolidated Interim
Financial Statements.
2. Basis of preparation (continued)
(d) To assist in understanding the underlying performance, the Group has
separately disclosed the following items of pre-tax income and expense:
- amortisation of acquired intangibles resulting from IFRS 3
'Business Combinations' fair value exercises;
- profits or losses on disposal, closure or impairment of
non-current assets or businesses;
- costs associated with business restructuring;
- corporate transaction costs;
- changes in the fair value of contingent consideration;
- the impact of significant litigation; and
- the related tax impact effect on these items.
Any other items are considered individually by virtue of their nature or size.
The separate disclosure of these items allows a clearer understanding of the
trading performance on a consistent and comparable basis, together with an
understanding of the effect of non-recurring or large individual transactions
upon the overall profitability of the Group.
The items disclosed separately have been included within the appropriate
classifications in the consolidated income statement and are detailed in note
4. The directors have also presented Net Gaming Revenue, Contribution and
Underlying EBITDA as these are measures used frequently within the industry.
All of these items are reconciled within the Income Statement.
(e) Accounting policies
Depreciation
Depreciation is applied using the straight-line method to specific classes of
asset to reduce them to their residual value over their estimated useful
economic lives.
The estimated useful lives are as follows:
Land and buildings Lower of 50 years, or estimated useful life of the building, or lease.
Indefinite lives are attached to any land held and therefore it is not
depreciated
Plant and equipment 3 - 5 years
Fixtures, fittings and equipment 3 -10 years
Amortisation
Amortisation is charged to the income statement on a straight-line basis over
the estimated useful lives of intangible assets, unless such lives are
indefinite. All indefinite lived assets are subject to an annual impairment
review from the year of acquisition. Other intangible assets are amortised
from the date they are available for use.
The estimated useful lives are as follows:
Exclusive New Zealand licence 25-year duration of licence
Retail licences 15 years, or duration of licence
Software 2 -15 years
Trademarks and brand names 10 - 25 years, or indefinite life
Customer relationships 3 -15 years
(e) Accounting policies (continued)
Impairment
An impairment review is performed for goodwill and indefinite life assets on
at least an annual basis. For all other non-current assets an impairment
review is performed where there are indicators of impairment. This requires an
estimation of the recoverable amount which is the higher of an asset's fair
value less costs to sell and its value in use. Estimating a value in use
amount requires management to make an estimate of the expected future cash
flows from each cash generating unit and to discount cash flows by a suitable
discount rate in order to calculate the present value of those cash flows.
Estimating an asset's fair value less costs to sell is determined using future
cashflow and profit projections as well as industry observed multiples and
publicly observed share prices for similar gambling companies.
Within Retail the cash generating units are generally an individual Licensed
Betting Office ("LBO") and therefore, impairment is first assessed at this
level for licences, property, plant and equipment and right of use ("ROU")
assets, any impairment arising booked first to licences then to property,
plant and equipment and ROU assets.
Separately Disclosed Items
For a full explanation of what is defined as a separately disclosed item and
how they are disclosed, please refer to note 2(d).
(f) Updates to IFRS
A number of amendments to IFRSs became effective for the financial year
beginning 1 January 2024:
IFRS 16 'Leases' Lease liability in a sale and leaseback transaction 1 January 2024
IAS 1 'Presentation of Financial Statements' Classification of liabilities as current or non-current 1 January 2024
Non-current liabilities regarding long-term debt with covenants
IFRS 7 'Financial Instrument Disclosure' Supplier Financial Arrangements 1 January 2024
IAS 7 'Statement of Cash Flows Supplier Financial Arrangements 1 January 2024
None of the amendments to IFRS noted above had a significant effect on the
financial statements.
3. Segment information
The Group's operating segments are based on the reports reviewed by the
Executive management team (which is collectively considered to be the Chief
Operating Decision Maker (CODM)) to make strategic decisions and allocate
resources.
IFRS 8 requires segment information to be presented on the same basis as that
used by the CODM for assessing performance and allocating resources, and the
Group's operating segments.
Following an internal review the focus of the business and the reports
reviewed by the CODM have been amended. The disclosure of segment information
has been amended to match the revised reporting structure. Comparative
information has been amended to reflect this change.
The group results are now aggregated into the four reportable segments.
- UK&I: comprises betting, gaming and retail activities from online
and mobile operations, and activities in the shop estates within Great
Britain, Northern Ireland, Jersey, and Republic of Ireland.
- International: comprises betting, gaming and retail activities in the
shop estates in the rest of the world apart from UK&I and CEE.
- CEE: comprises betting, gaming and retail activities in Croatia
and Poland for brands SuperSport and STS;
- Corporate: includes costs associated with Group functions
including Group executive, legal, Group finance, US joint venture, tax and
treasury.
- New Opportunities: Reflects the now closed B2C offering under
the unikrn brand.
The Executive management team of the Group have chosen to assess the
performance of operating segments based on a measure of net revenue, EBITDA
and operating profit with finance costs and taxation considered for the Group
as a whole. Transfer prices between operating segments are on an arm's-length
basis in a manner similar to transactions with third parties.
The segment results for the six months ended 30 June 2024 were as follows:
2024 UK&I International CEE Corporate Elimination Total Group
£m £m £m £m of internal £m
revenue
£m
NGR 1,004.7 1,318.8 240.9 - (8.7) 2,555.7
VAT/GST (2.1) (33.3) - - - (35.4)
Revenue 1,002.6 1,285.5 240.9 - (8.7) 2,520.3
Gross Profit 680.3 717.4 136.9 - - 1,534.6
Contribution 553.2 519.5 121.5 - - 1,194.2
Operating costs excluding marketing costs (353.8) (218.5) (36.8) (61.3) - (670.4)
Underlying EBITDA before separately disclosed items 199.4 301.0 84.7 (61.3) - 523.8
Share based payments (3.2) (2.5) - (3.2) - (8.9)
Depreciation and Amortisation (72.9) (87.2) (9.2) (0.4) - (169.7)
Share of joint ventures and associates - (0.9) - (56.4) - (57.3)
Operating profit/(loss) before separately disclosed items 123.3 210.4 75.5 (121.3) - 287.9
Separately disclosed items (6.9) (96.2) (85.7) (35.7) - (224.5)
Group operating profit/(loss) 116.4 114.2 (10.2) (157.0) - 63.4
Net finance expense (91.0)
Loss before tax (27.6)
Income tax (19.3)
Loss for the period from continuing operations after tax (46.9)
Loss for the period from discontinued operations after tax -
Loss for the period after discontinued operations (46.9)
3. Segment information (continued)
The segment results for the six months ended 30 June 2023 were as follows:
2023 UK&I International CEE Corporate Elimination Total Group
£m £m £m £m New Opportunities of internal £m
£m revenue
£m
NGR 1,069.5 1,230.9 106.7 - - (2.8) 2,404.3
VAT/GST (2.0) (24.7) - - - - (26.7)
Revenue 1,067.5 1,206.2 106.7 - - (2.8) 2,377.6
Gross Profit 726.4 660.7 70.6 - - - 1,457.7
Contribution 603.5 459.7 67.9 - (4.9) - 1,126.2
Operating costs excluding marketing costs (361.5) (187.9) (15.4) (57.2) (4.8) - (626.8)
Underlying EBITDA before separately disclosed items 242.0 271.8 52.5 (57.2) (9.7) - 499.4
Share based payments (3.2) (2.5) - (3.4) - - (9.1)
Depreciation and Amortisation (66.5) (63.9) (2.6) (0.2) (1.6) - (134.8)
Share of joint ventures and associates - (0.3) - (47.8) - - (48.1)
Operating profit/(loss) before separately disclosed items 172.3 205.1 49.9 (108.6) (11.3) - 307.4
Separately disclosed items (3.5) (71.4) (42.0) (616.5) - - (733.4)
Group operating profit/(loss) 168.8 133.7 7.9 (725.1) (11.3) - (426.0)
Net finance expense (22.1)
Loss before tax (448.1)
Income tax (54.4)
Loss for the period from continuing operations after tax (502.5)
Loss for the period from discontinued operations after tax (3.7)
Loss for the period after discontinued operations (506.2)
Assets and liabilities information is reported internally in total and not by
reportable segment and, accordingly, no information is provided in this note
on assets and liabilities split by reportable segment.
Geographical information
Revenue by destination for the Group, is as follows:
Six months ended Six months ended
30 June 2024 30 June 2023
£m £m
United Kingdom and Ireland 1,002.6 1,067.5
Australia and New Zealand 278.5 207.1
Italy 263.7 279.3
Rest of Europe((1)) 755.2 647.4
Rest of the World((2)) 220.3 176.3
Total 2,520.3 2,377.6
1. Rest of Europe is predominantly driven by markets in Croatia,
Poland, Belgium, Netherlands, and Georgia.
2. Rest of the World is predominantly driven by the market in
Brazil and Canada.
4. Separately disclosed items
Six months ended Six months ended
30 June 2024 30 June 2023
£m Tax Impact Tax Impact
£m £m £m
Amortisation of acquired intangibles ((1)) 148.8 (27.5) 110.2 (19.1)
Restructuring costs ((2)) 18.8 (2.1) 6.8 (0.9)
Legal and onerous contract provisions ((3)) 7.9 - 5.6 0.3
Impairment loss ((4)) 22.7 (6.4) - -
Movement in fair value of contingent consideration ((5)) 20.4 (13.9) 13.6 4.0
Financing ((6)) 51.9 (1.0) 2.3 (0.4)
Legal settlement ((7)) 5.9 - 585.0 -
Corporate transaction costs ((8)) - - 12.2 -
Separately disclosed items for the period from continuing operations 276.4 (50.9) 735.7 (16.1)
Separately disclosed items for the period from discontinued operations - 3.7
Total before tax 276.4 (50.9) 739.4 (16.1)
Separately disclosed items for the period after discontinued operations 225.5 723.3
(1. )Amortisation charges in relation to acquired intangible assets
arising from acquisitions. The majority of the charge is from recent
acquisitions, including Enlabs, Bet.pt, Avid, SuperSport, BetCity, STS, and
Tab NZ.
(2. )Costs associated with the Group's restructuring programs,
including project Romer.
(3. )Costs relating primarily to our commitments to the DPA as well
as other legal costs associated with disposed businesses.
(4. )During the period the Group recognised a non-cash impairment of
certain assets in New Zealand, following a platform migration.
(5. )Reflects the movement in the fair value of contingent
consideration arrangements on prior years acquisitions as well as the
associated discount unwind. Further details of contingent consideration
liabilities are provided in Note 13.
(6. )Write-off of issue costs on the refinancing of Group debt.
(7. )During the prior year, Entain plc entered into a Deferred
Prosecution Agreement ("DPA") with the Crown Prosecution Service ("CPS") in
relation to historical conduct of the Group, thereby resolving the HM Revenue
& Customs ("HMRC") investigation into the Group. As a result of the
agreement reached, the Group recognised a £585.0m discounted liability during
the prior year in relation to amounts it has agreed to be pay in relation to
the disgorgement of profits, charitable donations and contributions to CPS
costs. The current year charge reflects discount unwind on the original
discounted liability.
(8. )Transaction costs associated with the M&A activity in the
prior year.
5. Finance expense and income
Six months ended Six months ended
30 June 2024 30 June 2023
Underlying items Separately disclosed items Total Underlying items Separately disclosed items Total
£m (Note 4) £m £m (Note 4) £m
£m £m
Bank loans and overdrafts (128.9) (51.9) (180.8) (106.3) (2.3) (108.6)
Interest arising on lease liabilities (7.6) - (7.6) (5.9) - (5.9)
Losses arising on financial derivatives - - - (23.0) - (23.0)
Total finance expense (136.5) (51.9) (188.4) (135.2) (2.3) (137.5)
Interest receivable 7.0 - 7.0 3.8 - 3.8
Gains arising on financial derivatives 77.8 - 77.8 - - -
Gains arising on foreign exchange on debt instruments 12.6 - 12.6 111.6 - 111.6
Net finance expense (39.1) (51.9) (91.0) (19.8) (2.3) (22.1)
6. Taxation
The tax charge on continuing operations for the six months ended 30 June 2024
was £19.3m (six months ended 30 June 2023: charge of £54.4m) including a
credit of £50.9m (30 June 2023: £16.1m) related to separately disclosed
items. The effective tax rate on continuing operations (excluding the effect
of JV results and foreign exchange on financing items) before separately
disclosed items is 27.4% (30 June 2023: 24.1%).
The current period's tax charge on continuing operations before separately
disclosed items was higher than the UK average statutory rate for the period
of 25.0% due to unrecognised deferred tax assets on losses arising in BetMGM,
partially offset by credits from updates to prior periods.
The Group's deferred tax assets and liabilities are measured at the tax rates
of the respective territories which are expected to apply in the year in which
the asset is realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the balance sheet
date. Deferred tax assets have been recognised based on the availability of
future offset against deferred tax liabilities or against future taxable
profits. The assessment of future taxable profits is based on forecasts and
assumptions consistent with those used for impairment testing.
The underlying effective tax rate on continuing operations for the full year
ended 31 December 2024, excluding the results of BetMGM and foreign exchange
on financing items, is forecast to be c25%.
The Group's future tax charge, and effective tax rate, could be affected by a
number of factors including the geographic mix of profits, changes to
statutory corporate tax rates and the impact of continuing global tax reforms.
The UK enacted legislation in 2023 to implement the minimum level of taxation
for multinational groups ("Pillar Two"). These rules apply to the Group from 1
January 2024. The impact of these rules for the period ended 30 June 2024 is
to increase the tax charge by £1.4m.
7. Dividends
A second interim dividend of 8.9p (30 June 2023: 8.5p) per share, amounting to
£56.9m (30 June 2023: £50.1m) in respect of the year ended 31 December was
paid on 26 April. An interim dividend of 9.3p (2023: 8.9p) per share has been
declared.
8. Earnings per share
Basic earnings per share has been calculated by dividing the loss attributable
to shareholders of the Company of £43.2m (30 June 2023: loss of £501.1m) by
the weighted average number of shares in issue during the six months of 638.9m
(30 June 2023: 593.0m).
The calculation of adjusted earnings per share which removes separately
disclosed items and foreign exchange gains and losses arising on financial
instruments has also been disclosed as it provides a better understanding of
the underlying performance of the Group. Separately disclosed items are
defined in note 2 and disclosed in Note 4.
Weighted average number of shares (million): Six months ended Six months ended
30 June 2024 30 June 2023
Shares for basic earnings per share 638.9 593.0
Potentially dilutive share options and contingently issuable shares 5.0 5.5
Shares for diluted earnings per share 643.9 598.5
8. Earnings per share (continued)
Six months ended Six months ended
30 June 2024 30 June 2023
£m £m
Loss attributable to shareholders (43.2) (501.1)
- from continuing operations (43.2) (497.4)
- from discontinued operations - (3.7)
(Gains)/losses arising from financial instruments (77.8) 23.0
Gains arising from foreign exchange of debt instruments (12.6) (111.6)
Tax charge on foreign exchange 11.5 10.8
Separately disclosed items net of tax 201.7 708.0
Adjusted profit attributable to shareholders 79.6 129.1
- from continuing operations 79.6 129.1
- from discontinued operations - -
Standard earnings Adjusted earnings per share
per share Six months ended
Six months ended 30 June
30 June
Stated in 2024 2023 2024 2023
pence
Basic earnings per share
- from continuing operations (6.8) (83.9) 12.5 21.8
- from discontinued operations - (0.6) - -
From profit for the period (6.8) (84.5) 12.5 21.8
Diluted earnings per share
- from continuing operations (6.8) (83.9) 12.4 21.6
- from discontinued operations - (0.6) - -
From profit for the period (6.8) (84.5) 12.4 21.6
The earnings per share presented above is inclusive of the performance from
the US joint venture BetMGM. Adjusting for the removal of the BetMGM
performance would result in a basic adjusted earnings per share of 21.2p
(2023: 29.9p) and a diluted adjusted earnings per share of 21.0p (2023: 29.7p)
from continuing operations.
9. Impairment
IAS 36 Impairment of Assets states that an impairment review must be carried
out at least annually for any indefinite lived assets, such as goodwill and
certain brands. Furthermore, it is necessary to assess whether there is any
indication that any other asset, or cash generating unit (CGU), may be
impaired at each reporting date. Should there be an indication that an asset
may be impaired then an impairment review should be conducted at the relevant
reporting date.
No current indicators which might lead to a material impairment have been
identified by the directors for the six months ended 30 June 2024 and
therefore, no impairment, other than on assets no longer in use as disclosed
in Note 4, have been recognised.
10. Net debt
The components of the Group's net debt are as follows:
30 June 31 December 2023 30 June
2024 2023
£m £m £m
Current assets
Cash and short-term deposits 705.7 400.6 964.6
Current liabilities
Interest bearing loans and borrowings (26.6) (319.2) (613.1)
Non-current liabilities
Interest bearing loans and borrowings (3,668.3) (3,038.8) (2,567.9)
Accounting net debt (2,989.2) (2,957.4) (2,216.4)
Cash held on behalf of customers (201.3) (196.8) (196.5)
Fair value swaps held against debt instruments (58.5) (85.6) (30.0)
Other debt related items 194.0 224.8 124.9
Adjusted net debt (3,055.0) (3,015.0) (2,318.0)
Lease liabilities (274.3) (275.9) (275.9)
Net debt including lease liabilities (3,329.3) (3,290.9) (2,593.9)
(* Other debt related items include balances held with payment service
providers, deposits, and similar items.)
11. Note to the statement of cash flows
Six months ended Six months ended
30 June 30 June
2024 2023
£m £m
Loss before tax from continuing operations (27.6) (448.1)
Net finance expense 91.0 22.1
Profit/(loss) before tax and finance expense from continuing 63.4 (426.0)
operations
Loss before tax and net finance expense from discontinued - (3.7)
operations
Profit/(loss) before tax and net finance expense including 63.4 (429.7)
discontinued operations
Adjustments for:
Impairment 22.7 -
Depreciation of property, plant and equipment 79.3 67.5
Amortisation of intangible assets 239.2 177.5
Share-based payments charge 8.9 9.1
(Increase)/decrease in trade and other receivables (12.7) 5.9
(Decrease)/increase in trade and other payables 5.5 36.2
(Decrease)/increase in other financial liabilities (13.7) 0.5
Increase in provisions 10.7 584.1
Share of results from joint ventures and associates 57.3 48.1
Other non-cash items (1.4) (1.3)
Cash generated by operations 459.2 497.9
12. Related party transactions
During the period, Group companies entered into the following transactions
with related parties who are not members of the Group:
Six months ended Six months ended
30 June 30 June
2024 2023
£m £m
Equity investment in the period
- Joint venture(1) 19.8 40.7
Sundry income
- Joint venture(2) 87.1 -
- Associates(3) 10.3 10.9
Sundry expenditures
- Associates(2) (31.8) (36.2)
1. Equity investment in BetMGM.
2. Income in the normal course of business from BetMGM.
3. Payments in the normal course of business made to Sports
Information Services (Holdings) Limited.
The following table provides related party outstanding balances:
30 June 31 December 30 June
2024 2023 2023
£m £m £m
- Joint venture receivables 78.2 54.7 77.4
- Associates payables (5.8) (0.1) (6.0)
- Associates receivables 10.3 3.2 4.2
13. Financial instruments
Details of the Group's borrowing are set out in note 10.
Fair value of financial instruments
The major component of the Group's derivative financial assets measured at
fair value consist of currency swaps held against debt instruments of £19.8m
(30 June 2023: £70.4m, 31 December 2023: £31.9m). The fair value of the
Group's other financial assets at 30 June 2024 is not materially different to
its original cost.
The major components of the Group's financial liabilities measured at fair
value consist of; the Group's currency swap liability £78.3m (30 June 2023:
£100.4m, 31 December 2023: £117.5m), discounted deferred and contingent
consideration of £1,237.2m (30 June 2023: £1,245.9m, 31 December 2023:
£1,335.5m) principally on Tab NZ which has been discounted at rates relevant
to the local market, put option liabilities of £538.2m ( 30 June 2023:
£309.0m, 31 December 2023 £536.3m) principally on Entain Holdings (CEE)
Limited, ante post liabilities of £16.8m (30 June 2023: £13.0m, 31 December
2023: £17.1m) and other financial liabilities of £3.4m ( 30 June 2023:
£10.5m, 31 December 2023: £9.6m).
Financial assets and financial liabilities measured at fair value in the
Statement of Financial Position are grouped into three levels of a fair value
hierarchy. The three levels are defined on the observability of significant
inputs to the measurement, as follows:
· Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities;
· Level 2: inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly or indirectly;
and
· Level 3: inputs for the asset or liability that are not based on
observable market data.
There are no reasonably probable changes to assumptions or input that would
lead to material changes in the fair value determined, although the final
value will be determined by future sporting results. The valuation of the
contingent element of consideration is subject to estimation uncertainty as
the amount payable is based on various factors, including future
profitability. With the exception of Tab NZ, the range of potential valuations
is not expected to be materially different from that provided in the financial
statements.
13. Financial instruments (continued)
The Group's financial assets and liabilities that are measured at fair value
after initial recognition fall under the 3 levels of the fair value hierarchy
as follows:
· Level 1 - £8.0m assets (30 June 2023: £4.9m, 31 December 2023:
£7.1m), and £nil liabilities (30 June 2023: £nil, 31 December 2023: £nil).
· Level 2 - £21.9m assets (30 June 2023: £72.2m, 31 December
2023: £34.4m), and £100.4m liabilities (30 June 2023: £78.3m, 31 December
2023: £117.5).
· Level 3 - £8.4m assets (30 June 2023: £8.0m, 31 December 2023:
£8.5m), and £1,254.9m liabilities (30 June 2023: £1,261.6m, 31 December
2023: £992.8m).
14. Contingent liabilities
AUSTRAC
In October 2020, AUSTRAC initiated a compliance assessment of Entain Group Pty
Ltd, the Group's subsidiary in Australia ("Entain Australia"). Following two
years of assisting AUSTRAC with the assessment, Entain Australia was notified
in September 2022 that AUSTRAC would be commencing an enforcement
investigation. The investigation is focused on whether Entain Australia
complied with its obligations under the AML/CTF Act.
Entain Australia continues to co-operate fully with AUSTRAC's enforcement
team, and is liaising regularly with AUSTRAC's regulatory operations teams as
it implements a detailed remediation plan. As AUSTRAC are still conducting
their investigation and reviewing documentation, it is too early to predict
the likely timing and potential outcome of the investigation. Whilst the
details of the investigation into Entain Australia are different to other
AUSTRAC investigations in the bookmaking industry, the directors note that
previous penalties in AUSTRAC civil penalty proceedings have been significant.
Therefore, as at the Balance Sheet date, uncertainty exists over both the
timing and outcome of the investigation, with any potential penalty, should
one arise, potentially material.
The Group remains fully engaged, working collaboratively with AUSTRAC and
providing detailed quarterly updates on enhancements to its AML/CTF program.
Whilst significant progress has been made since 2022, this remains a key area
of focus.
As a leading gambling operator, the Group recognises that it has a
responsibility to keep financial crime out of gambling, and remains committed
to our customers, our shareholders and the communities that we operate in to
ensure we act as a gatekeeper for safer betting.
Greek tax
In November 2021, the Athens Administrative Court of Appeal ruled in favour of
the Group's appeal against the tax assessment raised by the Greek tax
authorities in respect of 2010 and 2011. In February 2022, the Greek tax
authorities appealed against the judgements to the Greek Supreme
Administrative Court. While the Group expects to be successful in defending
the appeal by the Greek authorities, should the Greek Supreme Administrative
Court rule in favour of the Greek tax authorities, then the Group could become
liable for the full 2010-2011 assessment plus interest, an estimated total of
€292m at 30 June 2024.
In addition to the items discussed above, the Group is subject to other
litigation claims that arise as part of the normal course of business.
Provision has not been made against these claims as they are either not
considered likely to result in an economic outflow or it is not possible to
estimate the likely quantum and timing of any outflow. Consistent with any
claims of this nature, there is inherent uncertainty in the final outcome
which could be material. In particular, the Group is aware that, on 1 and 2
August 2024, two groups of shareholders issued separate claims against Entain
plc which arise from the circumstances and disclosures relating to GVC's
legacy Turkish-facing business and the investigation by HMRC into those
operations, an investigation which was concluded upon the entry by Entain plc
into a Deferred Prosecution Agreement with the UK Crown Prosecution Service on
5 December 2023. Entain has not yet been formally served with either of the
claims.
ADDITIONAL INFORMATION
The following information shows the trading performance for the first half
split by channel. This information has been provided in order to assist year
on year comparability with previously reported results which, prior to the
current year re-segmentation, were analysed as Online and Retail.
Online
Reported results(1)
Six months to 30 June 2024 2023 Change CC(2)
£m £m % %
Sports wagers 7,164.3 6,674.3 7% 10%
Sports margin 14.7% 13.9% 0.8pp 0.8pp
Sports NGR 887.2 742.0 20% 23%
Gaming NGR 898.8 908.9 (1%) -
B2B NGR 40.1 23.8 68% 68%
Total NGR 1,826.1 1,674.7 9% 11%
VAT/GST (32.7) (26.1) (25%) (31%)
Revenue 1,793.4 1,648.6 9% 11%
Gross profit 1,059.9 973.7 9%
Contribution 726.8 652.9 11%
Contribution margin 39.8% 39.0% 0.8pp
Operating costs (282.0) (243.4) (16%)
Underlying EBITDA(3) 444.8 409.5 9%
Share based payments (4.7) (4.7) -
Underlying depreciation and amortisation (99.0) (70.9) (40%)
Share of JV (loss)/income (0.9) (0.3) (200%)
Underlying operating profit(4) 340.2 333.6 2%
Retail
The Retail business is made up of our Retail estates in the UK, Italy,
Belgium, Croatia, New Zealand and Republic of Ireland.
Reported results(1)
Six months to 30 June 2024 2023 Change CC(2)
£m £m % %
Sports wagers 2,303.2 2,171.4 6% 7%
Sports margin 19.2% 19.4% (0.2pp) (0.2pp)
Sports NGR/Revenue 447.9 429.4 4% 5%
Machines NGR/Revenue 290.4 303.0 (4%) (4%)
NGR 738.3 732.4 1% 1%
VAT/GST (2.7) (0.6) (350%) (416%)
Revenue 735.6 731.8 1% 1%
Gross profit 474.7 484.0 (2%)
Contribution 467.4 478.2 (2%)
Contribution margin 63.3% 65.3% (2.0pp)
Operating costs (327.1) (321.4) (2%)
Underlying EBITDA(3) 140.3 156.8 (11%)
Share based payments (1.0) (1.0) -
Underlying depreciation and amortisation (70.3) (62.1) (13%)
Share of JV income - - -
Underlying operating profit(4) 69.0 93.7 (26%)
INDEPENDENT REVIEW REPORT TO ENTAIN PLC
Conclusion
We have been engaged by Entain plc ("the Company") to review the condensed set
of financial statements in the half-yearly financial report for the six months
ended 30 June 2024 which comprises the condensed consolidated income
statement, condensed consolidated statement of comprehensive income, condensed
consolidated balance sheet, condensed consolidated statement of changes in
equity, condensed consolidated statement of cash flows and the related
explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2024 is not prepared, in all
material respects, in accordance with IAS 34 Interim Financial Reporting
adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European
Union and the Disclosure Guidance and Transparency Rules ("the DTR") of the
UK's Financial Conduct Authority ("the UK FCA").
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other information
contained in the half-yearly financial report and consider whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the Group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards
adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European
Union.
The directors are responsible for preparing the condensed set of financial
statements included in the half-yearly financial report in accordance with IAS
34 adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union.
In preparing the condensed set of financial statements, the directors are
responsible for assessing the group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the group or to cease operations, or have no realistic alternative
but to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. Our conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit procedures, as
described in the Basis for conclusion section of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the DTR of the
UK FCA. Our review has been undertaken so that we might state to the Company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Mark Flanagan
for and on behalf of KPMG LLP
Chartered Accountants
EastWest
Tollhouse Hill
Nottingham
NG1 5FS
08 August 2024
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BDLLBZVLXBBFRecent news on Entain
See all newsREG - Entain PLC - Total Voting Rights
AnnouncementREG - Entain PLC - Q1 Trading Update
AnnouncementREG - Entain PLC - Appointment of Chief Executive Officer
AnnouncementREG - Entain PLC - BetMGM Q1 2025 Update
AnnouncementREG - Entain PLC - Result of AGM
Announcement