REG - Entain PLC - Update on current trading and operational strategy

EntainAnnouncement

25/09/2023 07:00

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RNS Number : 4432N  Entain PLC  25 September 2023

7.00am 25 September 2023

 

Entain plc

("Entain" or the "Group")

 

Update on current trading and FY23 Online NGR guidance

Reiteration of FY2023 EBITDA guidance of £1.00bn-£1.05bn

Actions to accelerate operational strategy and performance

 

Entain plc (LSE: ENT), the global sports-betting, gaming and interactive
entertainment group, is today providing an update on current trading and FY
2023 guidance, as well as plans to update shareholders on the progress of
ongoing actions to accelerate operational performance and drive shareholder
value.

 

Current trading

Post the summer, Online Net Gaming Revenue (NGR) has been mixed across the
Group, but in aggregate, softer than anticipated.  Q3 Online NGR growth is
now expected to be up high single-digit percent, and down high single digit
percent on a proforma basis.  Key drivers include:

·    Adverse sporting results impacting sports margins during September

·    Group wide implementation of industry leading safer gambling measures
and ongoing regulatory headwinds persisting longer than expected, particularly
in the UK

·    Slower growth than expected in Australia and Italy

·    Good underlying Online growth (ex-regulatory impacts) as evidenced by
further strong proforma growth in active customers across the quarter

·    Strong performance from recent acquisitions, particularly SuperSport
in Croatia

·    Robust performance across Retail

·    BetMGM in the US continuing to perform well: on track to deliver
positive EBITDA in the second half of 2023; FY2023 NGR at the upper end of
$1.8-$2.0bn guidance; and the successful rollout of Single Account Single
Wallet, as well as online sportsbook enhancements supporting strong start to
the NFL season

 

We now expect Group Online NGR for FY2023 to be up low double-digit percent
with proforma NGR down low single digit percent.  We reiterate our
expectations for FY2023 EBITDA to be in the range of £1.00bn-£1.05bn
supported by robust operational controls.

 

Actions to accelerate operational strategy and performance

Over the last three years Entain has undergone a significant strategic
transformation, improving the quality of earnings and aligning operations to
ensure the Group is positioned as strongly as possible to deliver long term
shareholder value.

Alongside the Q3 trading update on 2 November 2023, management will share more
detail on how these actions are being implemented to accelerate performance
and delivery, including:

·    A comprehensive market review focusing on long-term sustainable
organic growth

·    The simplification of Group structures and operations to improve
operational leverage and reduce costs

·    A plan for the migration of acquired businesses on to the Group's
industry leading technology platform

·    Optimising our capital allocation priorities

·    Progress on delivery of the Group's Online EBITDA margin target of
30%

 

Jette Nygaard-Andersen, CEO of Entain, commented:

"We continue to see good underlying growth in our online business and are
reiterating our EBITDA guidance for the year despite softer than expected
revenue growth in Q3 and the ongoing roll-out of industry-leading safer
gambling measures.  We continue to attract more customers than ever before to
enjoy our products and services. BetMGM remains on track to deliver positive
EBITDA in H2 and a full year NGR performance at the top end of our
expectations, and we are particularly excited about the product improvements
that we are rolling out over the NFL season.

We have made significant changes to the Group over the last three years.  Our
focus now is on accelerating the actions we are taking to drive sustainable
organic growth, expand our margins, capitalise on the US opportunity and
deliver long-term returns for our shareholders.  We remain confident in our
ability to deliver on the vast opportunities ahead of us, and look forward to
sharing more detail about the changes that we are making alongside our Q3
trading update in November."

 

Notes

(1)      Period relates to 1 July to 22 September 2023

(2)      Estimates of growth are based on a constant currency basis
calculated by translating 2023 and 2022 performances at 2023 exchange rates

 

Enquiries:

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

 David Lloyd-Seed, Chief IR & Communications Officer

 Davina Hobbs, Head of Investor Relations

 Aimee Remey, VP US Investor Relations

 Callum Sims, IR Manager
 Media - Entain plc                                        media@entaingroup.com (mailto:media@entaingroup.com)

 Lisa Attenborough, Head of Corporate Communications

 Jay Dossetter, Head of Corporate PR

 Jodie Hitch, PR Manager
 Powerscourt                                               Tel: +44 (0) 20 7250 1446

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

 

 

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) as it forms part of English law by virtue
of the European Union (Withdrawal) Act 2018, 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 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

 

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