REG - Entain PLC - Q1 Trading Update

EntainAnnouncement

07/04/2022 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:20220407:nRSG5537Ha&default-theme=true

RNS Number : 5537H  Entain PLC  07 April 2022

7 April 2022
 
 

Entain plc

("Entain" or the "Group")

 

A strong start to the year, in line with expectations

 

Entain plc (LSE: ENT), the global sports betting, gaming and interactive
entertainment group, today reports trading for the period from 1 January to 31
March 2022 ("Q1").

 

Q1 Highlights

·      Strong start to the year with Group NGR up 31% (+34% cc(1))
supported by the return of Retail

·      Online net gaming revenue ("NGR") down 8% (-6%cc(1)) in line with
expectations versus strong 2021 comparators

o   Continued momentum in all major markets(2)

o   Online NGR 3yr CAGR up 14% cc(1)

o   Further broadening of the customer base with actives up 34% over two
years

·      Retail up strongly year on year due to closures in the prior
year, with volumes settling within 5%-10% of pre-Covid levels

·      Avid Gaming, Klondaika and Totolotek transactions deliver
strategic growth expansion into new markets

·      BetMGM continues to go from strength to strength

o   Established number two operator with 24%(3,4) market share where BetMGM
operates

o   Consistently leading iGaming operator with 29%(4) market share

o   BetMGM now live in 23 markets; four new markets in Q1 and Ontario on 4
April

o   On track to reach positive EBITDA in 2023(5)

o   Further details will be provided at the BetMGM Business Update on 12 May
2022

·      Continued focus and progress under our Sustainability Charter

o   Expansion of ARC(TM) player protection trials into international markets

o   Founding partner of Global Gaming Alliance ("GGA") to promote higher
standards and safeguards in the global gaming industry

o   S&P award recognising ESG leadership and inclusion in the Global
Sustainability Yearbook 2022

 

Jette Nygaard-Andersen, Entain's CEO, commented:

"We have started the year with a good performance across all areas of our
business, driven as ever by the strength of our industry-leading platform. We
have delivered strong performances in all of our major markets, and I am
pleased to report that Retail is performing well with customers returning for
our instore experience.

In the US, BetMGM is firmly established as the number two operator, and our
market launches during Q1 mean that we now have access to over 41% of the US
adult population. Elsewhere, our strategy of expanding into new markets is
continuing at pace, having acquired businesses in Canada, Latvia and Poland
during Q1.

As a growing business we continue to invest in and build our business around
our customers to provide them with the best experiences whilst also capturing
the many opportunities ahead. Given the strength and continuing momentum of
our underlying business, coupled with our proven ability to grow both
organically and through M&A, we remain confident in our financial
performance for FY22 and beyond."

 

                                        Q1: Period 1 January to 31 March 2022
               Total         Total      2yr CAGR Total NGR  3yr CAGR Total NGR  Sport Wagers  Sport Wagers  Sports Margin

               NGR           NGR        cc(1)               cc(1)                             cc(1)

                              cc(1)

 Online
    Sports     (7%)          (3%)       18%                 19%                 (7%)          (4%)          +0.2pp
    Gaming     (10%)         (9%)       6%                  10%
 Total Online  (8%)          (6%)       12%                 14%

 Retail(6)     >1000%        >1000%     4%                  (2%)                >1000%        >1000%        n/m

 Total Group   31%           34%        8%                  6%

 

Notes

(1)   Growth on a constant currency basis calculated by translating 2022 and
2021 performances at 2022 exchange rates

(2)   Excluding Germany and Netherlands where the markets are undergoing
regulatory change

(3)   BetMGM revenues comprise of sports (Online and Retail) and iGaming
revenues

(4)   BetMGM market shares for the three month period to February 2022
(excluding Arizona in February, as data yet to be reported)

(5)   Based on current assumption of future live markets

(6)   Retail operates in UK, Italy, Belgium and Republic of Ireland.
Retail numbers are quoted on a LFL basis. During Q1 2022, there were an
average of 4,333 shops/outlets in the estate, compared to an average of 4,662
during Q1 2021

 

Enquiries:

 Investor Relations - Entain plc                           investors@entaingroup.com (mailto:investors@entaingroup.com)

 David Lloyd-Seed, Chief IR & Communications Officer       david.lloyd-seed@entaingroup.com (mailto:david.lloyd-seed@entaingroup.com)

 Davina Hobbs, Head of Investor Relations                  davina.hobbs@entaingroup.com (mailto:davina.hobbs@entaingroup.com)

 Callum Sims, IR Manager                                   callum.sims@entaingroup.com (mailto:callum.sims@entaingroup.com)

 Media - Entain plc                                        media@entaingroup.com (mailto:media@entaingroup.com)

 Lisa Attenborough, Head of Corporate Communications       lisa.attenborough@entaingroup.com (mailto:lisa.attenborough@entaingroup.com)

 Jay Dossetter, Head of ESG and Press Office               jay.dossetter@entaingroup.com (mailto:jay.dossetter@entaingroup.com)

 Jodie Hitch, PR Manager                                   Jodie.hitch@entaingroup.com (mailto:Jodie.hitch@entaingroup.com)

 Powerscourt                                               Tel: +44 (0) 20 7250 1446

 Rob Greening/Nick Hayns/Sam Austrums                      entain@powersco (mailto:entain@powerscourt-.com) urt-group.com
                                                           (mailto:entain@powerscourt-.com)

 

 

 

 

Q1 Conference Call & Webcast

An analyst call will be held today, Thursday 7 April 2022 at 9:00am (BST).
Participants may join via webcast or by conference call dial in, approximately
10 minutes before the start of the call.

Live audio webcast link:  https://brrmedia.news/ENTQ1
(https://brrmedia.news/ENTQ1)

To participate in the Q&A, please also connect via the conference call
dial in details.

UK                           +44 (0) 33 0165 4012

US                            +1 646 828 8073

Access Code:           1149989

 

A replay of the presentation and transcript will be available on our website:

https://entaingroup.com/investor-relations/results-centre/
(https://entaingroup.com/investor-relations/results-centre/)

 

Upcoming dates:

BetMGM Business Update:             12 May 2022

Q2 Trading Update:                          7 July 2022

Interim Results:                                11
August 2022

Q3 Trading Update:                          13 October
2022

 

 

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), 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 bwin, Bet.pt, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet and Sports Interaction; Gaming Brands include CasinoClub, 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 with operations
in a total of 31 regulated or regulating territories. Entain is a leader in
ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has
set a science-based target, committing to be carbon net zero by 2035 and
through the Entain Foundation supports a variety of initiatives, focusing on
safer gambling, grassroots sport, diversity in technology and community
projects. For more information see the Group's website: www.entaingroup.com
(http://www.entaingroup.com)

LEI: 213800GNI3K45LQR8L28

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  TSTUPUCGCUPPPUQ