REG - Entain PLC - Q1 Trading Update

EntainAnnouncement

18/04/2023 07:00

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RNS Number : 5057W  Entain PLC  18 April 2023

For Release at 7.00am

18 April
2023

Entain plc

("Entain" or the "Group")

 

Strong momentum across the Group with record levels of active customers

Group performance 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 2023 ("Q1").

 

Financial Highlights:

·      Strong start to 2023 with Q1 Group Net Gaming Revenue ("NGR") up
+15% (+11%cc(1))

o   Including our 50% share of BetMGM, Q1 Group NGR was up +17%cc(1)

·      Online Q1 NGR up +16% (+11%cc(1)), in line with expectations and
demonstrating strong momentum

o   Online NGR in Q1 +1%cc(1) proforma. On an underlying basis, excluding
the known regulatory impacts in the UK and Germany, Online NGR was +6%cc(1)
proforma

o   Record levels of active customers in Q1, up +19% versus the prior year
(+14% proforma)

·      Strong performance in Retail with Q1 NGR up +14% (+13%cc(1))

·      BetMGM continues to grow strongly with Q1 NGR of approximately
$470m, up +76%, delivering in line with guidance of $1.8-$2.0bn for 2023

o   Consistent iGaming leadership with 28%(3) market share and established
amongst leading operators with 17%(2,3) share in sports-betting and iGaming
markets where BetMGM operates

o   Successful Super Bowl and March Madness, with strong customer
acquisition during the quarter

o   Player economics continue to support state cohort profitability, and
BetMGM remains on track to deliver positive EBITDA in the second half of
2023(4)

 

Operational Highlights:

·      Continued execution of strategic growth with further
diversification and expansion across regulated markets and products

o   Strategic partnership with TAB New Zealand ("TAB NZ") to provide
wagering operations in New Zealand

o   Acquisition of 365scores to broaden customer appeal and support online
growth

·      Ongoing focus and progress across our Sustainability strategy

o   Only global operator with 100% revenue from regulated or regulating
markets

o   Commitment for two-year programme with Gordon Moody Charity, continuing
the Entain Foundation's funding for responsible gaming support

o   ARC continues to provide industry leading player protection with over
3.7million interactions so far

o   Retained AA rating by MSCI ESG Ratings, illustrating continued industry
leadership in ESG

 

 

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

"2023 is off to a strong start, with continuing underlying momentum across our
operations around the world. We are delivering both financially and
strategically, with a record number of active customers enjoying our products,
and we are executing on growth opportunities to further diversify and expand
across regulated markets. In the US, BetMGM continues to grow in line with
expectations and enjoyed a successful quarter which included the Super Bowl
and March Madness.

Looking ahead, we remain confident that our customer focus, diversification
and proven ability to grow organically and through M&A will enable us to
demonstrate further progress against our strategy."

 

 Q1: 1 January to 31 March 2023
                              Total  Total       Sport Wagers  Sport Wagers cc(1)  Sports Margin

                              NGR    NGR cc(1)

 Online
    Sports                    8%     2%          3%            (2%)                +0.4pp
    Gaming                    25%    20%
 Total Online                 16%    11%

 Retail                       14%    13%         17%           15%                 +0.2pp

 Total Group (ex US)          15%    11%

 BetMGM                       94%    76%

 Total Group inc. 50% BetMGM  22%    17%

 

Notes

(1)      Growth on a constant currency basis calculated by translating
2023 and 2022 performances at 2023 exchange rates

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

(3)      BetMGM market shares for the three month period to February 2023
(excluding Arizona in February, as data yet to be reported)

(4)      Based on current assumption of future live markets

 

 

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)

 Aimee Remey, VP US Investor Relations                     aimee.remey@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, Tuesday 18 April 2023 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:  Entain Group 2023 Q1 Trading Update
(https://kvgo.com/IJLO/Entain_Group_2023_Q1_Trading_Update)

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

UK                            +44 (0) 33 0551 0200

US                            +1 866 580 3963

Access Code:         Quote "Entain" when prompted by operator

 

A replay of the presentation and transcript will be available on our website:
Results Centre - Entain Group
(https://entaingroup.com/investor-relations/results-centre/)

 

Upcoming dates:

Interim Results:
                                10 August 2023

 

 

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 and SuperSport; 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 40 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)

 

Important notices

Certain statements in this announcement are forward-looking statements,
including with respect to Entain's expectations, intentions and projections
regarding its future performance, strategic initiatives, anticipated events or
trends and other matters that are not historical facts and which are, by their
nature, inherently predictive, speculative and involve risks and uncertainty
because they relate to events and depend on circumstances that may or may not
occur in the future. All statements that address expectations or projections
about the future, including statements about operating performance, strategic
initiatives, objectives, market position, industry trends, general economic
conditions, expected expenditures, expected cost savings and financial results
are forward‐looking statements. Any statements contained in this
announcement that are not statements of historical fact are, or may be deemed
to be, forward‐looking statements. These forward-looking statements, which
may use words such as "aim", "anticipate", "believe", "could", "intend",
"estimate", "expect", "may", "plan", "project" or words or terms of similar
meaning or the negative thereof, are not guarantees of future performance and
are subject to known and unknown risks and uncertainties. There are a number
of factors including, but not limited to, commercial, operational, economic
and financial factors, that could cause actual results, financial condition,
performance or achievements to differ materially from those expressed or
implied by these forward-looking statements. Many of these risks and
uncertainties relate to factors that are beyond Entain's ability to control or
estimate precisely, such as changes in taxation or fiscal policy, future
market conditions, currency fluctuations, the behaviour of other market
participants, the actions of governments or governmental regulators, or other
risk factors, such as changes in the political, social and regulatory
framework in which Entain operates or in economic or technological trends or
conditions, including inflation, recession and consumer confidence, on a
global, regional or national basis. Given those risks and uncertainties,
readers are cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements speak only as of the date of this
announcement. Entain and its affiliates, and any of its or their respective
directors, officers, partners, employees, advisers or agents (collectively,
"Representatives") expressly disclaim any obligation or undertaking to update
or revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise unless required to do so by applicable
law or regulation.

In particular, no statement in this announcement is intended to be a profit
forecast or profit estimate and no statement of a financial metric (including
estimates of EBITDA, profit before tax, free cash flow or net debt) should be
interpreted to mean that any financial metric for the current or future
financial years would necessarily match or exceed the historical published
position of Entain and its subsidiaries. Certain statements in this
announcement may contain estimates. The estimates set out in this announcement
have been prepared based on numerous assumptions and forecasts, some of which
are outside of Entain's influence and/or control, and is therefore inherently
uncertain and there can be no guarantee or assurance that it will be correct.
The estimates have not been audited, reviewed, verified or subject to any
procedures by Entain's auditors. Undue reliance should not be placed on them
and there can be no guarantee or assurance that they will be correct.

This announcement is being issued by and is the sole responsibility of Entain.
No representation or warranty, express or implied, is or will be made as to,
or in relation to, and no responsibility or liability is or will be accepted
by or on behalf of, Entain (apart from the responsibilities or liabilities
that may be imposed by the Financial Services and Markets Act 2000, as amended
or the regulatory regime established thereunder) or by its affiliates or any
of its Representatives as to, or in relation to, the accuracy, adequacy,
fairness or completeness of this announcement or any other written or oral
information made available to or publicly available to any interested party or
its advisers or any other statement made or purported to be made by or on
behalf of Entain or any of its affiliates or any of its Representatives in
connection with Entain and any responsibility and liability whether arising in
tort, contract or otherwise therefore is expressly disclaimed.

 

LEI: 213800GNI3K45LQR8L28

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