REG - Entain PLC - Q1 Trading Update

EntainAnnouncement

17/04/2024 07:01

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RNS Number : 8785K  Entain PLC  17 April 2024

17 April 2024

Entain plc

("Entain" or the "Group")

 

Group performance in line with expectations

Good progress on operational improvements

 

Entain plc (LSE: ENT), the global sports betting and gaming group, today
reports trading for the period from

1 January to 31 March 2024 ("Q1").

Key Highlights:

·      We continue to make good progress improving the operational
performance of the business to drive organic revenue growth

·      Group Q1 performance in line with our expectations

o  Total Group Net Gaming Revenue ("NGR"), including 50% share of BetMGM(1),
up +6%cc(2), -3%cc(2) on a proforma(3) basis

o  Group proforma Online NGR (excl US) -2%cc(2), supported by 11% proforma(3)
growth in active customers

·      UK & Ireland NGR was down -7%cc(2), (Online -9%cc(2), Retail
-6%cc(2)) as we continue to experience the effects of our regulatory
implementation

o  Our actions that are driving operational improvements together with the
levelling of the UK regulatory landscape will position our brands well for
growth into 2025

·      International(4) NGR was up +8%cc(2), -2%cc(2) on a proforma(3)
basis (Online -1%cc(2), Retail -8%cc(2))

o  Positive performance across many of our markets, partly offset by expected
softness in Australia, Netherlands and Germany

o  Encouraging return to good year on year growth in Brazil, driven by
ongoing operational improvements initiated in 2023

o  In spite of strong volume growth, NGR in Italy was impacted by
customer-friendly sports margins

·      Entain CEE(5) continued to perform well with NGR up +11%cc(2)
(Online +11%cc(2), Retail +9%cc(2)) on a proforma(3) basis with SuperSport in
Croatia performing particularly strongly

·      BetMGM delivered Q1 NGR(1) up +2% year on year with a 14%(6)
market share in sports betting and iGaming in the markets where it operates

o  Continuing iGaming strength offset by customer-friendly win margins across
online and retail sportsbooks; adjusting for impact of sports margin estimated
Q1 NGR(1) would have been high single digit positive

o  Strong growth in customer acquisition, supported by successful Super Bowl
and March Madness engagement and improving app and product capabilities

o  With an enhanced player experience and exciting pipeline ahead, including
more Angstrom powered offerings, BetMGM is well positioned to invest for
future growth

Stella David, Interim CEO of Entain, commented:

"Our Q1 performance was in line with our expectations, with growth reflecting
both strong performances in many of our markets as well as known challenges in
others. We are particularly encouraged by the level of customer engagement in
the US following a successful Super Bowl and March Madness, as well as our
return to growth in Brazil following the changes we implemented.

Overall, we are pleased with the progress being made against our plan to
accelerate Entain's operational performance. There is still more to do, but
the team is fully engaged in delivering operational improvements, product
enhancements, as well as greater organisational agility and efficiency. We
look forward to building on this momentum as we focus on our strategic
priorities of organic revenue growth, margin expansion and winning in the U.S.
We remain confident that our continued focused execution will drive organic
growth into 2025 and beyond."

 

Q1 2024 Trading performance:

                           Q1 2024: 1 January to 31 March 2024
                           Total                                       Gaming  Sports  Sports       Sports

                           NGR                                         NGR     NGR     Wagers       Margin
                           Reported(7)  CC(2)  Proforma CC(2,3)        Proforma CC(2,3)

 UK & Ireland              (7%)         (7%)   (7%)                    (7%)    (8%)    (12%)  +0.5pp
    Online UK&I        (9%)         (9%)   (9%)                    (8%)    (13%)   (21%)  +0.6pp
    Retail UK&I        (6%)         (6%)   (6%)                    (6%)    (5%)    (3%)   (0.2pp)

 International             4%           8%     (2%)                    1%      (5%)    (3%)   (0.5pp)
    Online Int'l           4%           8%     (1%)                    1%      (4%)    (4%)   (0.3pp)
    Retail Int'l           4%           7%     (8%)                    23%     (10%)   2%     (2.2pp)

 CEE                       124%         130%   11%                     30%     6%      7%     +0.2pp
    Online CEE             128%         133%   11%                     31%     5%      8%     +0.2pp
    Retail CEE             111%         116%   9%                      22%     8%      5%     +0.4pp

 Group (ex US)             4%           6%     (3%)                    (2%)    (5%)    (5%)   (0.1pp)
    Online                 6%           9%     (2%)                    (1%)    (4%)    (6%)   +0.1pp
    Retail                 (1%)         0%     (5%)                    (5%)    (6%)    (1%)   (0.8pp)
 BetMGM                    (2%)         2%     2%
 Total Group inc           3%           6%     (3%)

 50% of BetMGM

 

2023 quarterly performance presented in alignment with the new segmental
reporting structure, is available on our website:
https://entaingroup.com/investor-relations/results-centre/
(https://entaingroup.com/investor-relations/results-centre/)

Notes

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

(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)   International segment comprises of all other countries outside the UK
& Ireland, Entain CEE and US reporting segments, including Australia,
Italy, Brazil, Netherlands, New Zealand, Georgia and Germany

(5)   Entain Central and Eastern Europe segment (Entain CEE) comprises of
Croatia and Poland

(6)   Combined market share for North America by GGR for last three months
ending January 2024 (includes US markets where BetMGM was active and an
estimation for Ontario); internal estimates used where operator-specific
results are unavailable

(7)   2024 results are unaudited, with the tables presented relating to
continuing operations and including both statutory and non-statutory measures

 

Q1 Conference Call & Audio Webcast

An analyst call will be held today, Wednesday 17 April 2024 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 2024 Q1 Trading Update
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fkvgo.com%2FIJLO%2FEntain_Q1_Trading_Update&data=05%7C02%7Cdavina.hobbs%40entaingroup.com%7C6b03388c370c46ba6cc508dc53b44003%7C60c43c0a64ac4050bf3e31e1cdfffdeb%7C0%7C0%7C638477280888184013%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=zjlCHStvcOa164w1eaAuCtWk2cRbAfBUSxRJFqJJsuY%3D&reserved=0)

To participate in the Q&A, please use conference call dial in:

                UK
                          +44 20 3936 2999

                US
                          +1 646 787 9445

                Global Dial-In Numbers
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.netroadshow.com%2Fconferencing%2Fglobal-numbers%3FconfId%3D63138&data=05%7C02%7Cdavina.hobbs%40entaingroup.com%7C6b03388c370c46ba6cc508dc53b44003%7C60c43c0a64ac4050bf3e31e1cdfffdeb%7C0%7C0%7C638477280888208599%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=M5Bb%2Bxnhqbq8muaH31sZL8982k3jUGEDnjzdnk3PXyg%3D&reserved=0)

                Access Code:        506198

A replay and transcript will be available on our website:
https://entaingroup.com/investor-relations/results-centre/
(https://entaingroup.com/investor-relations/results-centre/)

 

Enquiries:

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

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

 Powerscourt                            Tel: +44 (0) 20 7250 1446

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

Upcoming dates:

Annual General Meeting    24 April 2024

2024 Interim results:                          8 August
2024

 

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. 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/) `
(http://www.entaingroup.com/) .

 

Important notices

Certain statements in this announcement are forward-looking statements which
are made in good faith, including with respect to Entain's current
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", "will" 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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