TIDMENT
RNS Number : 0209Z
Entain PLC
20 January 2022
20 January 2022
Entain plc
("Entain" or the "Group")
Strong 2021 performance evidences Entain's high growth
dynamics
FY21 EBITDA expected to be in the range of GBP875m - GBP885m,
ahead of previous expectations
Entain plc (LSE: ENT), the global sports-betting and gaming
entertainment group, today reports trading for the period from 1
October to 31 December 2021 ("Q4"), as well as for the financial
year to 31 December 2021 ("FY21").
Financial Highlights
-- Strong FY21 performance with Group net gaming revenue ("NGR")
up 7% (+8% cc(1) ) year on year
o FY21 Online NGR up 12% (+13% cc(1) ), demonstrating consistent
ability of our operating model to deliver diversified and
sustainable growth
o Strong growth in all major markets with FY21 Online NGR up 18%
(+20% cc(1) ) excluding Germany, where the new regulatory regime is
impacting the market
o Online growth continues to be actives driven, with actives up
25% year on year
o Retail NGR down 3% (4) (-3% cc(1, 4) ), reflecting more
Covid-19 restrictions than the prior year
o Including 50% share of BetMGM joint venture, Group FY21 NGR(2)
was up 14% (15% cc(1) )
-- Robust performance in Q4 with group Q4 NGR up 4% (+6% cc(1) )
o Q4 Online NGR down 9% (-6% cc(1) ), ahead of expectations
albeit down versus the prior year due to particularly strong
comparatives
o With most shops open for the full period, Q4 NGR in Retail was
up 60% (4) (+62% cc(1,) (4) ) year on year with volumes returning
to within 10% (4) of pre-Covid levels
-- FY21 Group EBITDA(5) expected to be in the range of GBP875m -
GBP885m, ahead of previous expectations
-- BetMGM (the Group's joint venture in the US with MGM Resorts)
continues to perform strongly, with FY21 NGR of approximately
$850m(2, 6) , up nearly 5 times versus the prior year, as announced
yesterday
o 24%(3) share in sports-betting and iGaming in the markets in
which BetMGM operates for the three months to November
o iGaming market leadership position maintained with 30%(3)
market share
o BetMGM expects net revenue from operations of over $1.3bn in
2022 and anticipates reaching positive EBITDA in 2023
Operational highlights
-- Additional investment of GBP25m(7) in New Opportunities
business segment in 2022 to support the launch of first esports
skill-based wagering products during 2022
-- Continued progress on ESG initiatives under our Sustainability Charter
o Entain Foundation launched EnTrain, a new multi-million-pound
global initiative to increase access to technology and improve
diversity
o ARC ("Advanced Responsibility & Care") programme continues
to progress well, with real-time customer interaction trials
underway, along with initial stages of international rollout
o Entain was named Socially Responsible Operator of the Year at
the SBC Awards North America, as well as EGR Operator of the
Year
o Entain continues to be the only online-led gaming company
included in the Dow Jones Sustainability Indices, in addition to
its continued inclusion in the FTSE4Good index
Jette Nygaard-Andersen, Entain's CEO, commented :
"2021 has been a successful and eventful period for Entain, and
our market-leading platform has driven another year of strong,
sustainable and diversified growth. All of our major markets have
performed well. BetMGM, our hugely exciting business in the US, has
been a particular highlight with FY21 net gaming revenue ahead of
expectations and an upgraded outlook for 2022.
We have also made significant operational progress and have
continued to provide our customers with even better content,
experiences and excitement as the worlds of media, entertainment,
technology and gaming converge.
As ever, our sustainability efforts have been at the core of
everything that we do. We have continued to lead the way in the
critically important area of player protection, and our
technology-based Advanced Responsibility and Care programme is
progressing well.
We continue to see significant growth opportunities ahead of us,
with a total addressable market of around $160bn across our new and
existing markets, as well as in emerging areas of interactive
entertainment. We believe these opportunities will enable us to at
least treble the size of our business. As a result, we remain
confident in our prospects for the year ahead and beyond."
Q4: 1 October to 31 December 2021
-------------- ---------------------------------------------- --------
Total Total 2yr CAGR Sports Sport Sports
NGR NGR Total Wagers Wagers Margin
cc(1) NGR cc(1)
-------------- ------ ------- --------- -------- -------- --------
Online
Sports (14%) (12%) 17% (1%) 2% (1.7pp)
Gaming (4%) (2%) 11%
Total Online (9%) (6%) 14%
Retail (4) 60% 62% (4%) 75% 77% (4.4pp)
Total Group 4% 6% 6%
-------------- ------ ------- --------- -------- -------- --------
Full Year: 1 January to 31 December 2021
------------------------ ------------------------------------------------- --------
Total Total 2yr CAGR Sports Sport Sports
NGR NGR Total Wagers Wagers Margin
cc(1) NGR cc(1)
------------------------ ------- -------- ---------- -------- -------- --------
Online
Sports 21% 22% 22% 20% 21% +0.0pp
Gaming 4% 6% 16%
Total Online 12% 13% 19%
Retail (4) (3%) (3%) (21%) (10%) (9%) (1.3pp)
Total Group 7% 8% 3%
------------------------ ------- -------- ---------- -------- -------- --------
Total Group inc BetMGM
(2,8) share 14% 15% 7%
------------------------ ------- -------- ---------- -------- -------- --------
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 and are not yet finalised for 2021
(3) BetMGM market shares for the three month period to November 2021
(4) Retail operates in UK, Italy, Belgium and Republic of
Ireland. Retail numbers are quoted on a LFL basis. During Q4, there
were an average of 4,425 shops/outlets in the estate, compared to
an average of 4,679 for the same period last year. In the full
year, there were an average of 4,540 shops in the estate, compared
to an average of 4,727 in the same period last year.
(5) Guidance on EBITDA is on a post IFRS 16 basis
(6) 2021 net revenue for BetMGM on a GAAP basis is expected to
be approximately $813 million, which includes approximately $52
million related to Nevada MGM operations for which BetMGM records
on a net basis as BetMGM is considered to be the agent in the
Nevada transactions for GAAP purposes
(7) Combined total EBITDA investment in New Opportunities
including innovation of GBP50m for FY2022
(8) Total Group including BetMGM includes 50% share of BetMGM revenues
Enquiries:
Investor Relations - Entain plc investors@entaingroup.com
David Lloyd-Seed, Group Director of IR & Corporate Communications david.lloyd-seed@entaingroup.com
Davina Hobbs, Head of Investor Relations
Callum Sims, Investor Relations Manager davina.hobbs@entaingroup.com
callum.sims@entaingroup.com
Media - Entain plc media@entaingroup.com
Tessa Curtis, Head of Group PR & Media Relations tessa.curtis@entaingroup.com
Jay Dossetter, Head of ESG and Press Office jay.dossetter@entaingroup.com
Media - Powerscourt Tel: +44 (0) 20 7250 1446
Rob Greening / Elly Williamson / Nick Hayns entain@powerscourt-group.com
Q4 Conference Call & Webcast
An analyst call will be held today, Thursday 20(th) January 2022
at 9:00am UK (10:00am 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/ENT_Q4
To participate in the Q&A, please also connect via the
conference call dial in details.
UK: +44 (0)33 0336 9601
US: +1 646 828 8073
Access Code: 4458668
A replay and call transcript will be available on our website:
https://entaingroup.com/investor-relations/results-centre/
Upcoming dates:
FY21 Results: 3 March 2022
Q1 Trading Update: 7 April 2022
BetMGM CMD: May 2022
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
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