2021 Interim Results

Entain PLC (LSE: ENT), a global sports betting, gaming and interactive entertainment group, today announced its interim financial results for the six months to 30 June 2021 (the "H1").

• Strong performance throughout the H1 reflecting the Group's strong and diversified business model

• Group-wide gaming revenue ("NGR") increased 11% (CC1: +11%)

• Online NGR increased 28% (CC1: +27%), driven by strong underlying performance in all major markets, a strong sports calendar and increased retail lock-in regulations

• • 22nd consecutive quarter of online double-digit growth
  • Online NGR increased 38% (CC 1), excluding Germany which is impacted by new regulations
  • Retail NGR decreased 46% (CC1: -46%).
  • NGR's first half revenue was $357 million
  • It is now the two largest sports and gaming operators in the U. S. with a market share of 22% 2, 3
  • It leads gaming with a market share of 30% and 3%
  • As announced on April 21, the joint venture partners' total investment in BetMGM is expected to reach $660 million by the end of 2021.
  • EBITDA Group 6, 7 EBITDA Group 6, 7 increased 12% to £401m
  • Group profit after tax from continuing operations £91m, up £69m
  • Full year EBITDA Group 6, 7, 9 expected from £850m upgraded on 8 July 2021
  • Net debt £1. 951m as at 30 June 2021, net debt to EBITDA ratio doubled following an active M& A programme and increased investment in BetMGM.
  • Successfully renewed five-year £590m revolving credit facility ("RCF") to raise new borrowings of $125m.
    • Strengthened balance sheet with favourable covenants and a more balanced maturity profile.
    • Improved liquidity for corporate activities and investments
    • Launched new efficiency programme to reduce costs and support investment in innovation and growth:
    • • Innovation investment of £100 million over three years
      • Total cost savings of £100 million
      • Net cash profits of £75 million per year from FY23 onwards
      • Continued commitment to ESG further advances Sustainability Charter
      • • Encouraged field trial of Entain's industry-leading advanced liability and care player protection programme, ARC
        • Committed to achieving carbon net zero by 2035 with science-based targets
        • ESG rating upgraded to AA by ratings agency MSCI
        • Entain Foundation supports grass sport and young athletes through Pitching In and SportsAid
        • Entain is holding an investor event today to outline the exciting opportunities ahead for the Group, including:
          • Growth opportunities in global sports betting and gaming
          • Leveraging Entain's platform at the intersection of media, entertainment and gaming to deliver new revenue streams in interactive entertainment.
          • The Group's deep knowledge of cutting-edge technology
          • Update on UK online business

          Jette Nygaard-Andersen, CEO of Entain, commented:

          "Entain's platform continues to deliver results. The quality and differentiation of our business has enabled us to deliver 22 consecutive quarters of double-digit online growth while at the same time making excellent progress against our strategic priorities. This performance is not only due to our industry-leading technology, but also the hard work and dedication of our talented teams around the world.

          In the US, BetMGM is constantly evolving as we solidify our position as the number two operator in the fast-growing sports betting and iGaming market. Over the next 12 months, we expect to grow our online presence to approximately 20% of the US adult population, representing 33% of the US adult population. We plan to operate in the states.

          Entertainment has a long-term path to sustainable growth embedded in our core business. Furthermore, we are confident that our unique and powerful platform, which sits at the heart of the convergence of media, entertainment and gaming, will enable us to further enhance our growth for many years to come by providing exciting interactive entertainment opportunities. ”

          Dividend The Board is not proposing an interim dividend, however we appreciate the importance of dividends to shareholders. Assuming that Covid-19 related restrictions continue to ease around the world, the Board expects to be in a position to reinstate a dividend at the full year results in March 2022.

          Outlook Following Entain's strong first half performance, the Group is confident about its outlook for the second half of 2021 and, as stated above, expects full year EBITDA 6+7+9 to be in the range of £850 million to £900 million.

          • Constant exchange rate growth rates are calculated by converting 2021 and 2020 results at 2021 exchange rates.
          • Bet MG revenue includes revenue from sports (online and retail) and iGaming.
          • Bet MG market share for the three months to the end of June 2021
          • 2021 figures are unaudited
          • Reported results are post-IFRS 16
          • EBITDAR is defined as earnings before interest, tax, depreciation, rent and related expenses, share-based compensation and JV income share. EBITDA is defined as EBITDAR after rent and related expenses.
          • Oral disclosure
          • Adjusted for the effects of specific items, foreign exchange movements on financial liabilities and derivative losses/gains (see Note 8 to interim financial statements)
          • References to forecast earnings are made on a reported basis post-adoption of IFRS 16.

          Questions

          Investor Relations - David Lloyd Seed, Group IR & Corporate Communications Director, Entain PLC Jennifer Spencer, Head of Investor Relations Callum Sims, Senior Director, Investor Relations Director of Investor Relations

          Media - Tessa Curtis, Head of Public Relations & Media, Entain Plc Media - Jay Dossetter, Head of ESG & Press Office

          Media - Powerscourt Rob Greening / Elly Williamson / Nick Hayns

          H1 Conference Call & Webcast- Thursday 12 August 2021, 8. 30am BST.

          Live Audio Webcast Link: https://brrmedia. news/ent_h121 To join the Q& A: UK +44 (0) 330 336 9434 US +1 929 477 0402 Room Code.

          Investor Conference Call and Webcast- Thursday, August 12, 2021 at 2pm BST.

          Live Audio Webcast Link: https://brrmedia. news/invevnt_21 To join the Q& A: UK +44 (0) 330 336 9126 US +1 929 477 0402 Room Code: 1720890

          Participants should join the webcast or dial-in approximately 15 minutes before the start of the event.

          Replays and call recordings of the interim results and investor event will be available on our website at https://entaingroup. com/investor-relations/results-centre/.

          Upcoming EventsThird Quarter Trading Update: October 7, 2021

          A description of future prospects includes descriptions on future outlook. These descriptions are described in many parts of this book, especially our achievements, financial status, fluidity, prospects, growth, strategies, and our intentions, beliefs, and current expectations. And the description of our executives, directors, and employees is included. These descriptions about the future outlook include all items that are not historic facts. Due to its nature, these descriptions include risks and uncertainty, and the results and developments may vary greatly from the expected events and situations. All descriptions of such future outlooks reflect the available knowledge and information as of this book. Except for legal or regulated duty (including market abuse regulations (596/2014), listing rules, information disclosure, transparency rules, prospectus regulations), we will update or modify the descriptions of future forecasts. I will not. Any description of this material should not be interpreted as a profit prediction. The Company and its directors are not responsible for any of the third party in connection with this book.

          Entain PLC (LSE: ENT) is a company that ranks FTSE100, and is the world's largest sportsbating and gaming group in both online and retail. The group has a comprehensive portfolio of the established brand. Sports brands include BWIN, Bet. pt, Crystalbet, EUROBET, Ladbrokes, NEDS, and Sportingbet. Gaming brands include Casinoclub, Foxy Bingo, Gala, Gioco Digitale, Ninja Casino, Optibet, PartyPoker, and Partycasino. The group has its own technology on all major product lines, providing services to many thir d-party customers on B2 B-based in addition to B2C activities. The group has also established MGM Resorts and joint ventures, and has pioneered sports betting and gaming in the United States through BetMGM. Entein offers technology that supports BETMGM and dedicated games and products developed in a unique gaming studio. The Enstein Group is a taxable British tax, and has acquired a license in a total of 27 regulatory markets. Entertainment is the leader of ESG, a member of FTSE4GOOD and DJSI, and has been evaluated as AA by MSCI, and has been selected as the Bloomberg's "50 Sustainable Leaders in Sustainability". The Entein Group has set scientific goals, promises to achieve zero by 2035, and provides the following support through the Entein Foundation.

          See the Group's website for details: www. ENTAINGROUP.

          Rei: 213800GNI3K45LQR8L28

          

          Elim Poon - Journalist, Creative Writer

          Last modified: 27.08.2024

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