REG - Entain PLC - Q2 Trading Update

EntainAnnouncement

07/07/2022 07:16

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RNS Number : 6010R  Entain PLC  07 July 2022

For Release at 7.00am

7 July
2022

Entain plc

("Entain" or the "Group")

 

Robust group performance with Retail strength offset by lower Online

 

Entain plc (LSE: ENT), the global sports betting, gaming and interactive
entertainment group, today reports trading for the periods of 1 April to 30
June 2022 ("Q2") as well as 1 January to 30 June 2022 ("H1").

 

Highlights

·      Group net gaming revenue ("NGR") up 18% (+18% cc(1)) in H1, with
Q2 up 8% (+6% cc(1))

·      Online NGR down 7% (-7%cc(1)) in H1, Q2 Online NGR down 7%
(-8%cc(1))

o  Performance continues to reflect tough 2021 comparators driven by Covid
lockdowns, closure in Netherlands ahead of licencing and the implementation of
tighter affordability measures in the UK

o  A weaker macro-economic environment is reducing customers' rate of spend,
moderating overall Online growth versus our previous expectations

o   Underlying performance remains strong:

§    Continued broadening of the customer base with record level of
actives in Q2, up 60% versus the same period in 2019 (pre-Covid)

§      Positive momentum across the first half, with Q2 NGR ahead of Q1

§     Online NGR 3yr CAGR up 13% cc(1) for H1

o   Updated guidance(6) of full year Online NGR flat year on year based on
current outlook, excluding impacts from the upcoming UK Gambling Act Review

·    Retail trading ahead of expectations, with volumes in Q2 ahead of
pre-Covid levels driven by gaming and self-service betting terminals

·     BetCity transaction expected to complete in H2, delivering
strategic growth opportunity in the newly regulated Dutch market

·      BetMGM continues to perform strongly, in line with expectations:

o   Established number two operator with 24%(2,3) market share where BetMGM
operates (excluding New York)

o   Consistent leading iGaming operator with 29%(3) market share

o   Exclusive partnerships with Carnival Corporation to offer BetMGM on
board cruise ships, as well as with Sony Pictures and IGT for a Wheel of
Fortune branded gaming experience

o   On track for FY22 NGR of over $1.3bn

o   Reiterate expectation to reach positive EBITDA during 2023(4)

·      Continued ESG leadership and further progress delivering across
our Sustainability Charter

o   Awarded GamCare's Advanced Safer Gambling Standard, for the highest
standards of player protection and social responsibility in Entain's UK online
and land-based activities

o   Launched Pitching-In Volunteer Hub for the Trident Leagues, connecting
volunteers and local clubs

o   Appointment of Rahul Welde as an independent Non-Executive Director

 

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

"I am very pleased to see that more customers are choosing to play with us,
reflecting our focus on recreational players and putting the customer at the
heart of everything we do. We continue to expand our growth opportunities
through complementary acquisitions with four transactions so far this year.
Underpinned by the Entain Platform, BetMGM continues to demonstrate its
leadership in the US with a 24%(2,3) market share.

Our leadership in responsibility and sustainability has seen us implement
further player safety measures alongside ARC(TM), particularly in the UK, as
well as respond to regulatory changes as markets implement regulation.

The macro-economic outlook is uncertain, however the underlying performance of
our business remains strong. With an increasingly recreational customer base
and relatively resilient revenue, we remain confident that our customer focus,
diversification and proven ability to grow both organically and through
M&A will enable us to deliver further progress against our strategy."

 

                                     H1: Period 1 January to 30 June 2022
               Total     Total       3yr CAGR Total NGR cc(1)            Sport Wagers  Sport Wagers cc(1)  Sports Margin

               NGR       NGR cc(1)

 Online
    Sports     (6%)      (6%)        16%                                 (3%)          (3%)                (0.3pp)
    Gaming     (9%)      (9%)        10%
 Total Online  (7%)      (7%)        13%

 Retail(6)     243%      244%        flat                                275%          276%                (0.3pp)

 Total Group   18%       18%         6%

 

 

                                     Q2: Period 1 April to 30 June 2022
               Total     Total       3yr CAGR Total NGR cc(1)           Sport Wagers  Sport Wagers cc(1)  Sports Margin

               NGR       NGR cc(1)

 Online
    Sports     (6%)      (9%)        12%                                1%            (1%)                (0.7pp)
    Gaming     (7%)      (9%)        10%
 Total Online  (7%)      (8%)        11%

 Retail(6)     79%       79%         2%                                 101%          101%                (0.8pp)

 Total Group   8%        6%          6%

 

Notes

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

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

(3)      Three month period to April 2022, in markets in which BetMGM
operates, excluding New York

(4)      Based on current assumption of future live markets

(5)      Retail operates in UK, Italy, Belgium and Republic of Ireland.
Retail numbers are quoted on a LFL basis. During Q2 2022, there were an
average of 4,300 shops/outlets in the estate, compared to an average of 4,577
during Q2 2021

(6)      Previous guidance as given at Full Year 2021 results (3(rd)
March 2022), was FY22 online NGR growth of mid to high single digit

 

 

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)

 

 

Q2 Conference Call & Webcast

An analyst call will be held today, Thursday 7 July 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/ENT_Q222
(https://brrmedia.news/ENT_Q222)

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:  5300034

 

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:

 Interim Results:  11 August 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

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