TIDMENT
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 GBP1.00bn-GBP1.05bn
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 GBP1.00bn-GBP1.05bn 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
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
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 urt-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 .
LEI: 213800GNI3K45LQR8L28
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