TIDMENT
RNS Number : 5409E
Entain PLC
08 July 2021
8 July 2021
Entain plc
("Entain" or the "Group")
Strong first half performance across the Group driving EBITDA
upgrade
Entain plc (LSE: ENT), the global sports-betting and gaming
entertainment group, today reports a first half trading update for
the period from 1 January to 30 June 2021 ("H1").
Financial highlights
-- Strong performance across the Group with positive trends as markets continue to re-open
-- Total Group net gaming revenue ("NGR") up 11% (11%cc(1) ) in
H1 and up 42% (+43% cc(1) ) in Q2
-- Delivered twenty-two consecutive quarters of double-digit
growth in Online with NGR up 22% (+23% cc(1) ) in Q2 driven by
sports betting, reflecting limited sports activity in the prior
year
o Excluding Germany Q2 Online NGR up 32%
o Encouraging early trends in retail as restrictions eased in
phases during Q2
-- BetMGM (the Group's joint venture in the US with MGM Resorts) continues to perform strongly
o Number two operator for sports betting and iGaming across the
US with 21%(2,3) market share
o Leading iGaming operator with 29%(2,3) market share
o First half NGR of approximately $350m
-- FY21 EBITDA now expected to be in the range of GBP850m to
GBP900m, ahead of current consensus
-- Investor event to be held on 12 August 2021 to provide a strategic and operational update
Jette Nygaard-Andersen, Entain's CEO, commented :
"We have delivered another strong performance across the Group.
Our diversified business model has enabled us to grow our business
in all key markets while navigating channel and product mix changes
as retail re-opens and we annualise last year's restricted sports
calendar.
Outside Germany where the market is digesting regulatory
changes, we saw excellent growth across all our major markets. Our
recent acquisitions, Bet.pt in Portugal and Enlabs in the Baltics,
have performed ahead of expectations, and BetMGM continues to grow
market share in the US, now at 24% (2,3) across our active
markets.
We have a powerful platform at Entain that enables us to deliver
consistent growth from our existing markets, whilst also entering
new markets, all powered by our industry leading technology
capabilities, business intelligence and analytics. Our platform
provides us with a significant opportunity to align our business
better with our customers and increasingly deliver a wider breadth
of exciting products, content and experiences as the worlds of
media, entertainment and gaming converge.
Following our strong first half, we are upgrading our
expectations for the full year and we remain confident and excited
by the breadth and scale of the long-term sustainable growth
opportunities ahead of us."
Q2: 1 April to 30 June 2021 H1: 1 January to 30 June 2021
(1)
-------------- --------------------------------------------- ---------------------------------------------
Total Total Sports Sport Sports Total Total Sports Sports Sports
NGR NGR Wagers Wagers Margin NGR NGR Wagers Wagers Margin
cc(1) cc(1) cc(1) cc(1)
-------------- ------ ------- -------- -------- -------- ------ ------- -------- -------- --------
Online
Sports 65% 62% 56% 54% +0.5pp 55% 52% 51% 48% +0.3pp
Gaming (1%) 1% 10% 11%
Total Online 22% 23% 28% 27%
Retail
(4) 359% 363% 245% 250% +3.9pp (42%) (43%) (51%) (51%) (0.3pp)
Total Group 42% 43% 11% 11%
-------------- ------ ------- -------- -------- ------ ------- -------- -------- --------
H1 - Trading highlights:
-- Total Group NGR growth of 11% (+11% cc(1) )
-- Strong Online performance across the first half with NGR up
28% (+27%cc(1) ) reflecting the robust and diversified business
model of the Group
o H1 Online NGR growth of +38%cc(1) excluding Germany
o Particularly strong performances in Italy (+76% cc(1) ) and
Brazil (+153% cc(1) )
-- Retail NGR down 42% (-43% cc(1) ) reflecting closures through much of the period
Q2 - Trading highlights
-- Total Group NGR growth of 42% (+43% cc(1) )
-- Momentum in Online NGR continued with growth of +22% (+23%cc(1) )
o Excellent performance in all major markets with NGR growth of
+32%cc(1) excluding Germany, as we benefited from extended
lockdowns around the world
o Online sports betting up strongly (+62% cc(1) ) reflecting
limited sports in the prior year period due to Covid-19
restrictions
o Online gaming NGR up strongly by 47%cc(1) compared to 2019,
but only 1%cc(1) versus a challenging prior year comparative
-- The acquisitions of Enlabs and Bet.pt completed at the start
of the second quarter and together contributed 4% to Online NGR in
Q2
-- Retail shops re-opened in-line with various stages of restrictions easing (see appendix)
o In the UK, since restrictions have progressively eased we have
seen volumes return to levels around 10% lower than pre-pandemic
levels
o Our estates in Italy and Belgium were largely closed for Q2
with re-opening phased from early June
Other highlights
-- Actions to strengthen the Group's balance sheet to provide
even greater financial flexibility for growth opportunities and to
reflect the growing scale of the Group including:
o 5 year GBP590m Revolving Credit Facility ("RCF") agreed,
replacing the Group's existing GBP535m RCF due to expire in March
2023
o Additional EUR300m term loan proposed to fund corporate
development and M&A
-- Continued leadership on ESG with further advances under our Sustainability Charter
o Live trials of Entain's industry leading innovative ARC
(Advanced Responsibility and Care) player protection programme
showing encouraging early progress
o Committing to be carbon net zero by 2035 based on Science
Based Targets
o Entain Foundation has driven a number of activities including
further support of grass roots sports and young athletes through
Pitching-In and SportsAid
-- Announcing separately today a doubling of investment in our
in-house games studios to accelerate and expand our ability to
provide customers with new and exclusive products and
experiences
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 end of May 2021
(4) Retail operates in UK, Italy, Belgium and Republic of
Ireland. Retail numbers are quoted on a LFL basis. During Q2 there
were an average of 4,577 shops/outlets in the estate, compared with
an average of 4,649 for the same period last year.
Enquiries:
Investor Relations - Entain plc investors@entaingroup.com
David Lloyd-Seed, Group Director of Investor Relations & Corporate Communications david.lloyd-seed@entaingroup.com
Davina Hobbs, Senior Investor Relations Manager davina.hobbs@entaingroup.com
Jennifer Spencer, Investor Relations Manager j ennifer.spencer@entaingroup.com
Media - Entain plc
Tessa Curtis, Head of Media Relations t essa.curtis@entaingroup.com
Jay Dossetter, Head of ESG and Press Office j ay.dossetter@entaingroup.com
Media - Powerscourt Tel: +44 (0) 20 7250 1446
Rob Greening / Elly Williamson entain@powerscourt-group.com
Q2 Conference Call & Webcast
An analyst call will be held today, Thursday 8 July 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/ENT2Q21
To participate in the Q&A, please also connect via the
conference call dial in details.
UK +44 (0) 33 0606 1118
US +1 646 813 7960
Room number: 133775
Participant PIN: 6876
A replay and call transcript will be available on our website:
https://entaingroup.com/investor-relations/results-centre/
Upcoming dates:
Interim Results & Investor Day: 12 August 2021
Entain plc will host an Investor Day on 12(th) August 2021,
alongside Interim Results. Further details will be circulated in
due course
Third quarter trading update: 7 October 2021
Phasing of retail re-openings
No of shops Opening with Opening with
significant 'standard' Covid-19
restrictions restrictions
--------------
England 2226 12(th) April 17(th) May
-------------- -------------- ---------------------
Wales 122 - 12(th) April
-------------- -------------- ---------------------
Scotland 329 26(th) April 17(th) May*
-------------- -------------- ---------------------
Northern Ireland 72 30(th) April 11(th) June
-------------- -------------- ---------------------
Republic of 132 - 17(th) May
Ireland
-------------- -------------- ---------------------
Italy 918 - 21(st) June
**
-------------- -------------- ---------------------
Belgium 298 shops, 398 - 9(th) June
outlets
-------------- -------------- ---------------------
* 5 shops in Moray did not have restrictions lifted until 22nd
May, 57 shops in Glasgow did not have restrictions lifted until 5th
June
** Staggered reopening: 13 shops 1(st) June, 91 shops 7(th)
June, 296 shops 14(th) June, 518 shops 21(st) June. 24 shops in
Italy remain closed
In addition to the above the group has 5 shops in Jersey which
re-opened in March
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
also entered into a joint-venture with MGM Resorts to capitalise on
the sports betting and gaming opportunity in the US, through
BetMGM. 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 Science Based Targets, 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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