REG - Entain PLC - TAB NZ Strategic Arrangement

EntainAnnouncement

28/03/2023 07:15

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RNS Number : 4408U  Entain PLC  28 March 2023

28 March 2023

 

Entain plc

 

Entain selected by TAB New Zealand as preferred partner for a 25-year
strategic arrangement

 

Entain plc (LSE: ENT), the leading global sports betting, gaming and
interactive entertainment group ("Entain" or the "Group"), announces that it
has been selected by TAB New Zealand ("TAB NZ") as its preferred partner for a
25-year strategic arrangement.

Entain was selected based on a wide range of criteria, including operational
expertise, cultural alignment with TAB NZ and its commitment to uplifting TAB
NZ's harm minimisation and responsible gambling efforts.

The proposed strategic arrangement, and timing of completion, remains subject
to approval from the New Zealand Minister for Racing.  Further information,
as appropriate, will be provided after the completion of the Ministerial
approval process.

 

Key terms of the proposed strategic arrangement:

·      TAB NZ has selected Entain as its preferred partner for a 25-year
strategic partnering arrangement;

·      Entain have agreed to make payments of up to NZ$260m
(approximately £132m(1)). Subject to Ministerial approval, NZ$160m
(approximately £81m(1)) is payable in 2023, with the balance subject to
passing of certain legislative amendments;

·      Ongoing gross profit share, plus payments above, to result in
minimum guaranteed funding to TAB NZ of over NZ$1.0bn in the first five years
of the arrangement.

 

Dean Shannon, CEO of Entain Australia, comments:

"We are excited to be selected by TAB NZ as its preferred partner. This is a
unique opportunity to shape the future wagering experience for customers and
to support New Zealand's racing and sporting industries. We have a compelling
vision for the future of TAB NZ, which includes a renewed focus on innovation
and technology, and a long-term commitment to all racing, sport and industry
stakeholders.

As the partner of choice for New Zealand, we have made a firm commitment to
employment continuity for at least 24 months, with the team at TAB NZ
essential to our future vision and growth of the market in New Zealand. We
applaud TAB NZ for how the process has been run to date and we look forward to
working with the existing management team and all stakeholders on necessary
approvals to finalise the transaction."

 

Notes

(1) NZ$ / GBP FX rate of 0.5070 as per Bloomberg at market close on 24(th)
March 2023

(2) For the purposes of UK LR 10.4.1 R, as at 31 January 2023, the assets of
the entity subject to the strategic partnering arrangement had a gross asset
value of approximately NZ$138m (approximately £70m(1)) and generated
operating profits of NZ$16m (approximately £8m(1)) in the year ending 31 July
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)

 Aimee Remey, VP US Investor Relations                     aimee.remey@entaingroup.com (mailto:aimee.remey@entaingroup.com)

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

 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)

 Karl deKroo, Stakeholder Engagement- Entain Australia     karl.dekroo@entaingroup.com.au

 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)

 

 

 

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)

LEI: 213800GNI3K45LQR8L28

 

 

About TAB NZ

TAB NZ is established as a body corporate under the Racing Industry Act 2020
(NZ). TAB NZ is the only regulated racing and sports betting operator in New
Zealand. It conducts betting in New Zealand under the "TAB" brand, which been
operating in New Zealand for over 70 years.

TAB NZ's statutory objectives are:

a)    to facilitate and promote betting; and

b)    Subject to minimising the risk of problem gambling and underage
gambling:

i.  maximise profits for the long-term benefit of NZ racing; and

ii. maximise returns under commission agreements with New Zealand national
sporting organisations (NSOs).

TAB NZ operates two linear broadcasting channels under its Trackside brand and
has approximately 500 retail venues.

 

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.

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