12 October 2021
Entain plc
("Entain" or the "Group")
23rd consecutive quarter of double-digit online growth,
underpinned by Entain's industry leading platform
Entain plc (LSE: ENT), the global sports-betting and gaming entertainment group, today reports trading for the period from 1 July to 30 September 2021 ("Q3").
Q3 Highlights
· Strong Q3 performance with Group net gaming revenue ("NGR") up 4% (+6% cc1) against a period of high growth in the prior year
o Online NGR +10% cc1, marking a 23rd consecutive quarter of double-digit growth in constant currency
o Excluding Germany, online NGR was up +18 %cc1
o All major markets (excluding Germany) delivered a strong performance, particularly in Australia and Brazil
· Retail NGR was +1%cc1, with UK volumes recovering toward pre-Covid-19 levels, and activity steadily rebuilding in Europe
· BetMGM continues to deliver strong growth, with a 23%3 market share across the US in sports-betting and iGaming for the three months to August
o 26%3 share in sports-betting and iGaming in the markets in which BetMGM operates
o Clear iGaming market leader with 32%3 market share
o Industry data for month of August shows BetMGM challenging for #1 market position across sports-betting and iGaming
o Live in 16 jurisdictions, with recent launches in Arizona, Wyoming and South Dakota on first day of state licencing
o Successful start to the NFL season with the launch of a national advertising campaign featuring Jamie Foxx
· Continued progress on ESG initiatives under our Sustainability Charter
o ARC ("Advanced Responsibility & Care") programme continues to make good progress, expanding trials into real time customer interaction across UK brands
o The Entain Foundation renewed its commitment to Pitching-In Trident Leagues and SportsAid partnerships
o The Entain Foundation U.S. funded pioneering research with University of Nevada in Las Vegas ("UNLV") and launched a new app to support the American Gaming Association's ("AGA") Responsible Gaming Initiative
· FY2021 Group EBITDA5 expected to be in line with previous guidance of £850m - £900m
o Uplift from strong Q3 trading performance offset by the previously announced impact of the licensing process in the Netherlands
Jette Nygaard-Andersen, Entain's CEO, commented:
"These results demonstrate Entain's continuing ability to deliver sustainable, consistent and diversified growth. Our powerful Entain platform provides customers with great products and experiences, which enables us to grow ahead of our markets as demonstrated by 23 consecutive quarters of double-digit online growth.
We continue to lead our industry in the all-important area of player protection, and I am excited by the early results of our innovative ARC programme, which we firmly believe has the potential to transform player protection across the industry.
As we announced on 12 August, our total addressable market is expected to more than triple to over $160bn. This will be driven by the significant opportunity in the US, where we are now challenging for the number one market position, our growth plans in other new and existing markets, and our strategy of entering into new areas of interactive entertainment.
By offering customers ever more engaging products, while leveraging our scale and technology, we will drive the flywheel effects of secular growth dynamics that can triple the size of our business. As a result, we remain very confident in Entain's future prospects."
| | Q3: 1 July to 30 September 2021 | YTD: 1 January to 30 September 2021 | ||||||||
| | Total NGR | Total NGR cc1 | Sports Wagers
| Sport Wagers cc1 | Sports Margin | Total NGR | Total NGR cc1 | Sports Wagers
| Sports Wagers cc1 | Sports Margin |
| | | | | | | | | | | |
| Online | | | | | | | | | | |
| Sports | 12% | 17% | 1% | 4% | +1.3pp | 38% | 39% | 30% | 30% | +0.7pp |
| Gaming | 1% | 4% | | | | 7% | 9% | | | |
| Total Online | 7% | 10% | | | | 20% | 21% | | | |
| | | | | | | | | | | |
| Retail4 | (1%) | 1% | (15%) | (13%) | +0.4pp | (23%) | (23%) | (32%) | (32%) | (0.5pp) |
| | | | | | | | | | | |
| Total Group | 4% | 6% | | | | 8% | 9% | | | |
Notes
(1) Growth on a constant currency basis is calculated by translating both 2021 and 2020 performance at the 2021 exchange rates
(2) BetMGM revenues comprise of sports (Online and Retail) and iGaming revenues
(3) BetMGM market shares for the three month period to August 2021
(4) Retail operates in UK, Italy, Belgium and Republic of Ireland. Retail numbers are quoted on a LFL basis. During Q3, there were an average of 4,513 shops/outlets in the estate, compared to an average of 4,777 for the same period last year
(5) Guidance on EBITDA is on a post IFRS 16 basis
Enquiries:
| Investor Relations - Entain plc David Lloyd-Seed, Group Director of IR & Corporate Communications Davina Hobbs, Head of Investor Relations Jennifer Spencer, Senior Investor Relations Manager Callum Sims, Investor Relations Manager | david.lloyd-seed@entaingroup.com
jennifer.spencer@entaingroup.com callum.sims@entaingroup.com |
| Media - Entain plc Tessa Curtis, Head of Group PR & Media Relations Jay Dossetter, Head of ESG and Press Office | media@entaingroup.com |
| Media - Powerscourt Rob Greening / Elly Williamson / Nick Hayns | Tel: +44 (0) 20 7250 1446 |
Q3 Conference Call & Webcast
An analyst call will be held today, Tuesday 12 October 2021 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/ENTQ321
To participate in the Q&A, please also connect via the conference call dial in details.
UK: +44 (0)33 0336 9434
US: +1 929 477 0324
Access Code: 2437105
A replay and call transcript will be available on our website: https://entaingroup.com/investor-relations/results-centre/
Upcoming dates:
ESG & Sustainability Showcase: 10 November 2021
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 and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, 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 joint-venture with MGM Resorts International creating a leader, BetMGM, in sports-betting and iGaming in the US. Entain provides the technology which powers BetMGM and exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK with licenses in a total of 27 regulated markets. 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
Full Year EBITDA expectations
On 8 July 2021 Entain announced a first half trading update for the six-month period ending 30 June 2021. As part of that announcement, Entain made the following statement:
"FY21 EBITDA now expected to be in the range of £850m to £900m, ahead of current consensus"
On 12 August 2021 Entain announced its interims results for the six-month period ending 30 June 2021. As part of that announcement, Entain made the following statement:
"Following Entain's strong first half performance, the Group is confident in its prospects for the second half of 2021 and, as previously guided, expects full year EBITDA to be in the range of £850m to £900m."
(together the Forecast).
The Forecast has been repeated in this third quarter trading update. The Forecast constitutes a profit forecast for the purposes of Rule 28.1 of the Takeover Code.
The Entain Directors confirm that the Forecast remains valid and confirm that the Forecast has been properly compiled on the basis of the assumptions stated below and that the basis of accounting used is consistent with Entain's accounting policies.
Assumptions
The Forecast was prepared on the basis of the following assumptions applying for the remainder of the forecast financial year to 31 December 2021, any of which could turn out to be incorrect and therefore affect the validity of the Forecast:
Factors within the influence and control of the Entain Directors
· There is no material change in the operational strategy of Entain from the date of this announcement to 31 December 2021.
· There will be no material change to the Entain Executive Directors in the current financial year.
· There will be no new acquisitions, partnerships or disposals which will have a material impact on Entain's results 2021 EBITDA.
· There will be no material change in the dividend or capital policies of Entain in the current financial year.
· There are no material strategic investments over and above those currently planned.
· Entain's accounting policies will be consistently applied over the forecast period to 31 December 2021.
Factors outside the influence of the Entain Directors
· There will be no material macroeconomic change in the principal markets and regions in which Entain operates.
· There will be no material adverse events which will have a significant impact on Entain's financial results or the financial position of Entain.
· There will be no changes in interest rates, bases of taxation, regulatory environment or legislation that have a material impact on Entain, including in relation to operations or accounting policies.
· There will be no material changes in customer demand or the competitive environment in which Entain operates.
· There will be no business disruptions that materially affect Entain or its customer or supplier partners.
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