REG - Entain PLC - Q3 Trading Update

EntainAnnouncement

13/10/2022 07:00

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RNS Number : 7175C  Entain PLC  13 October 2022

For Release at 7.00am

13 October 2022

Entain plc

("Entain" or the "Group")

 

Performance in line with expectations

Customer focus underpins record levels of actives

Strong momentum into the NFL season for BetMGM

 

Entain plc (LSE: ENT), the global sports betting, gaming and interactive
entertainment group, today reports trading for the period from 1 July to 30
September 2022 ("Q3").

 

Q3 Highlights

·      Group net gaming revenue ("NGR") up +2% (flat cc(1))

·      Online NGR +1% (-2% cc(1)) broadly in line with expectations and
demonstrating positive underlying momentum

o  NGR +4% (+1% cc(1)), excluding Netherlands (where there is a temporary
enforced closure of operations due to licencing procedures)

o  Record level of active customers in Q3, +6% YoY

o  NGR 3-year CAGR of 11% cc(1)

·     Retail NGR(2) up 10% (+10% cc(1)) and continuing to deliver strong
trading performance, with Q3 NGR(2) +8% vs pre-Covid levels

·     BetCity (Netherlands) and SuperSport (Croatia) transactions along
with creation of Entain CEE expected to complete in Q4, supporting further
growth and geographic diversity

·     BetMGM continues to perform strongly with 25%(3,4) market share
where it operates (excluding New York and 23%(3,4) including New York)

o  Successful start to the NFL season with Q3 NGR of just over $400m(3), up
c.90% YoY, with same-state revenues up c.50% YoY

o   Continued leadership in iGaming with 31%(4) market share

o   Online sports-betting market share progressing well with particular
strength (25%(5) share) in states where we were live on day one of market
launch

o   On track for FY22 NGR of over $1.3bn

o  Continued strong financial performance reiterates our confidence in
reaching sustainable positive EBITDA during 2023(6)

·      Continued leadership and progress delivered across our
Sustainability Charter

o   Awarded SBC's Global Socially Responsible Operator of Year for 2022

o  Entain and BetMGM led US online operators' commitment to the first
industry-led responsibility gaming standards

o   2022 Entain Sustain event to be held 19 October

 

Full Year Outlook

·      Healthy momentum into the year end with Online expected to grow
year on year in Q4 benefitting from:

o   Easing of prior year comparators

§ Last material Covid related lockdowns annualise during October

§ Temporary enforced closure of Netherlands operations annualises from 1
October; expect to be licensed and operating by the end of 2022

o   World Cup in Q4 this year, whilst Euros tournament took place in Q2 and
Q3 2021

·    FY2022 Group EBITDA(7) expected to be in line with previous guidance
of £925m - £975m, representing growth of 5-10% vs the prior year

 

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

"Our business continues to perform well with good underlying momentum across
the group, including in BetMGM. This illustrates the effectiveness of our
growth strategy, the unique capabilities of the Entain platform, and the
underlying strength of our diversified global business.

I am delighted that we have welcomed even more customers to our brands across
the world. This is a testament to our relentless focus on the customer, as
well as the quality of our products, content and talented people.

In the US, BetMGM continues to be the clear leader in the iGaming market, and
the successful start to the NFL season also highlights the strength of our
growing US sports betting offer.

We have healthy momentum across the business and look forward to a strong
finish to the year which includes the World Cup.  Looking ahead, we remain
vigilant of the economic backdrop. However, our diversified revenue base and
robust business model enable us to remain confident in our ability to deliver
on our growth and sustainability strategy."

 

 

                                     Q3: 1 July to 30 September 2022
               Total     Total       3yr CAGR Total NGR cc(1)           Sport Wagers  Sport Wagers cc(1)  Sports Margin

               NGR       NGR cc(1)

 Online
    Sports     1%        (4%)        12%                                1%            (3%)                +0.1pp
    Gaming     1%        (2%)        9%
 Total Online  1%        (2%)        11%

 Retail(2)     10%       10%         3%                                 4%            4%                  +1.3pp

 Total Group   2%        Flat        7%

 

                                     YTD: 1 January to 30 September 2022
               Total     Total       3yr CAGR Total NGR cc(1)            Sport Wagers  Sport Wagers cc(1)  Sports Margin

               NGR       NGR cc(1)

 Online
    Sports     (4%)      (5%)        15%                                 (1%)          (3%)                -0.1pp
    Gaming     (6%)      (7%)        10%
 Total Online  (5%)      (6%)        12%

 Retail(2)     102%      103%        1%                                  104%          104%                +0.6pp

 Total Group   12%       11%         6%

 

Notes

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

(2)      Retail operates in UK, Italy, Belgium, and Republic of
Ireland.  Retail numbers are quoted on a LFL basis. During Q3 2022, there
were an average of 4,274 shops/outlets in the estate, compared to an average
of 4,513 during Q3 2021

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

(4)      Three month period to Aug 2022, in markets in which BetMGM
operates, and excluding August for AZ, IL and SD as data yet to be reported

(5)     Three month period to Aug 2022, in markets in which BetMGM was live
on first day of state launch; CO, TN, MI, VA, WY, AZ, LA and excluding August
for AZ as data yet to be reported

(6)     Based on current assumption of future live markets

(7)      Guidance on EBITDA is on a post IFRS 16 basis, as stated at
Interim results on 11 August 2022

 

 

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 Corporate PR                       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)

 

 

Q3 Conference Call & Webcast

An analyst call will be held today, Thursday 13(th) October 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://kvgo.com/IJLO/Entain_3Q22_Trading_Update
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fkvgo.com%2FIJLO%2FEntain_3Q22_Trading_Update&data=05%7C01%7CCallum.Sims%40entaingroup.com%7C15472471186443af4a3b08da9d6d5d2f%7C60c43c0a64ac4050bf3e31e1cdfffdeb%7C0%7C0%7C637995390304200766%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=mfI3nvXnDXj44OMNCNJ6aBtXoN9gLs7f8UJ0Y2iTX7s%3D&reserved=0)

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

UK                         +44 (0) 33 0551 0200

US                          + 1 866 966 5335

Access Code:         Quote "Entain" when prompted by operator

 

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:

Entain Sustain:
                                19 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, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet
and Sports Interaction; 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, operating in
over 40 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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