Entain plc
Entain plc
08/11/2022 | Press release | Distributed by Public on 08/11/2022 00:05
2022 Interim Results
Click here for PDF of full announcement
11 August 2022
Entain plc
("Entain" or the "Group")
Robust H1 performance with strategic focus on broader customer appeal delivering record level of actives
Launch of Entain CEE and acquisition of SuperSport in Croatia
Entain plc (LSE: ENT), the global sports-betting, gaming and interactive entertainment group, today reports its Interim Results for the six-month period ended 30 June 2022 ("H1").
Strategic progress
- Group's strategic focus on a broader recreational customer base delivering record level of actives, up 57% versus H1 2019, and higher quality earnings
- Greater customer engagement driven by innovative new products and enriched experiences
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Further geographic expansion with five transactions this year to date consistent with our strategy of expanding into regulated markets
- Creation of Entain CEE and acquisition of SuperSport announced separately today, provides a strategic springboard to unlock the clear expansion opportunity in Central and Eastern Europe ("CEE")
- Acquisition in June of BetCity in the Netherlands to deliver growth in the newly regulated Dutch market
- Completion of Avid Gaming (Canada), Klondaika (Latvia) and Totolotek (Poland) transactions
- Ongoing ESG leadership and further progress made across our Sustainability Charter
- Expansion of Advanced Responsibility & Care ("ARCTM ") player protection trials into international markets
- Founding partner of Global Gaming Alliance ("GGA"), awarded GamCare's Advanced Safer Gambling Standard, and received numerous awards for safer gambling, including from S&P, SBC & EGR
- Pitching-In Volunteer Hub for the UK Trident Leagues launched to connect volunteers and local clubs
- Appointment of Rahul Welde as an independent Non-Executive Director
Financial highlights
- Robust Group performance during H1, reflecting the diversified business model and underlying momentum of the online business
- Total Group net gaming revenue ("NGR") growth of 18% (+18%cc2)
- Online NGR down 7% (-7%cc2) reflecting strong prior year comparators driven by Covid lockdowns, temporary closure in the Netherlands, affordability measures in the UK and customers responding to the economic backdrop
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-
- Excluding the Netherlands, NGR was down -3%cc2
- Strong underlying momentum with H1 Online NGR 3yr CAGR up 13%cc2
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- Retail perfomance ahead of expectations with a more interactive digital experience across gaming machines and betting terminals driving greater customer engagement
- BetMGM continues to perform strongly and is on track to deliver FY22 NGR of over $1.3bn
- H1 NGR of $608m, 65% ahead of 2021
- Established number two operator with 23%7 market share where BetMGM operates (excluding New York)
- Consistent leading iGaming operator with 30%7 market share
- Reiterate expectation to reach positive EBITDA during 2023,8
- Group EBITDA4,5 up 17% at £471m
- Group profit after tax from continuing operations £28m, down £63m
- FY 2022 Group EBITDA4,5,9 expected to be in the range of £925m to £975m, in line with current consensus10
- New progressive dividend policy announced:
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- Full year payment of £100m split evenly between Interim and Full Year
- Interim dividend of 8.5p per share
- Net Debt of £2,210m at 30 June 2022, with net debt to EBITDA ratio of 2.3x reflecting continued investment in growth opportunities
Jette Nygaard-Andersen, CEO of Entain, commented:
"We continue to make excellent progress on our strategic priorities, with momentum in our business remaining strong as a result of putting the customer at the heart of everything we do. I am delighted that more customers are choosing to play with us as we focus on providing them with even better products, engaging content and exciting experiences. This has resulted in our highest ever level of actives in H1, up 57% versus the same period two years ago. Not only is this approach great for our customers, but it also provides us with a broader, more recreational customer base that will support more sustainable long-term revenues.
Underpinned by the Entain platform, we continue to expand our growth opportunities, and have already announced five transactions so far this year. This includes today's announcement of an innovative growth strategy for Central and Eastern Europe, starting with the acquisition of SuperSport in Croatia. In the US, BetMGM goes from strength to strength and continues to demonstrate its market leadership with a 23%7 market share.
We continue to lead our industry on responsibility and sustainability as we deliver further progress on our Sustainability Charter. ARC™ continues to be rolled out into international markets and our efforts have been recognised in the UK and internationally with awards from GamCare, S&P, SBC as well as our inclusion in the Global Sustainability Yearbook 2022.
As ever, I would like to thank each and every one of our talented colleagues around the world for their hard work and dedication in helping deliver these results. We have established a meaningful runway for sustainable and high-quality growth. While we remain vigilant to the consumer backdrop, our geographic and product diversity provides resilience which, together with our proven ability to drive superior returns, gives us confidence that we will continue to deliver benefits for our stakeholders."
|
Group |
20221,3 |
20213 |
Change |
CC2 |
|
Six months to 30 June |
£m |
£m |
% |
% |
|
Net gaming revenue (NGR) |
2,117.6 |
1,792.6 |
18% |
18% |
|
Revenue |
2,094.9 |
1,767.0 |
19% |
19% |
|
Gross profit |
1,327.8 |
1,136.3 |
17% |
|
|
Underlying EBITDAR4,5 |
480.1 |
410.5 |
17% |
|
|
Underlying EBITDA4,5 |
471.0 |
401.1 |
17% |
|
|
Underlying operating profit5 |
246.5 |
205.6 |
20% |
|
|
Underlying profit before tax5 |
152.4 |
246.7 |
||
|
Profit after tax |
28.1 |
90.9 |
||
|
Basic EPS (p) |
5.1 |
13.8 |
||
|
Adjusted diluted EPS6 (p) |
29.3 |
18.5 |
||
|
Adjusted diluted EPS excl US6 (p) |
47.6 |
31.7 |
||
|
Dividend per share (p) |
8.5 |
- |
Dividend
Recognising the importance of dividends to shareholders, the strength of the operational performance of the business and our future prospects, the Group is implementing a new dividend policy.
The Board is proposing a progressive dividend, starting with a total dividend of £100m for the Financial Year to 31 December 2022, to be paid to shareholders in equal instalments in respect of the H1 and FY results.
The interim dividend of £50m (8.5p per share) in respect of the H1 2022 results announced today is expected to be paid in September 2022 to shareholders on register on 19 August 2022.
Outlook
Entain's first half performance reflects the underlying strength of our business model underpinned by our growth and sustainability strategy. The Group's momentum remains strong and our outlook for the balance of the year is unchanged with FY 2022 Group EBITDA4,5,9 expected to be in the range of £925m to £975m, in line with current consensus10. The economic environment remains uncertain in many of our markets, however we remain confident that our customer focus, increasing diversification and proven ability to deliver growth will see us deliver further progress for all stakeholders.
Notes
- 2022 reported numbers are unaudited
- Growth on a constant currency basis calculated by translating 2022 and 2021 performances at 2022 exchange rates
- Reflecting the results of continuing operations
- EBITDAR is defined as earnings before interest, tax, depreciation and amortisation, rent and associated costs, share based payments and share of JV income. EBITDA is defined as EBITDAR after charging rent and associated costs.
- Stated pre separately disclosed items
- Adjusted for the impact of separately disclosed items, foreign exchange movements on financial indebtedness and losses/gains on derivative financial instruments (see note 8 in the interim financial statements)
- BetMGM market shares for the three month period to May 2022, in markets in which BetMGM operates, excluding New York
- Based on current assumption of future live markets
- References to profit expectations are made on a reported basis post IFRS 16 implementation
- Current consensus as compiled by Entain, incorporating published analysts forecasts updated after 7 July 2022
Enquiries:
|
Investor Relations - Entain plc |
[email protected] |
|
Media - Entain plc |
[email protected] |
|
Powerscourt Rob Greening/Nick Hayns/Sam Austrums |
Tel: +44 (0) 20 7250 1446 |
H1 Conference Call & Webcast
The H1 2022 results presentation for analysts and investors will be held today, Thursday 11th August at 9:00am GMT. Participants may join via webcast or conference call dial in, approximately 15 minutes ahead of the event.
Live webcast link: https://brrmedia.news/ENTH12022
To participate in the Q&A, please also connect via the conference call dial in details.
UK: +44 (0) 33 0551 0202
US: +1 646 843 4609
Access Code: 4493388
The presentation slides will be accessible on our website shortly before the event. A replay and transcript will be available afterwards; https://entaingroup.com/investor-relations/results-centre/
Upcoming dates:
Q3 Trading update: 11 October 2022
Entain Sustain: 19October 2022
Dividend Timetable
Announcement date: 11 August 2022
Ex-Dividend date: 18 August 2022
Record date: 19 August 2022
Payment date: 22 September 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 a leading global sports-betting, gaming and interactive entertainment group, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet and Sports Interaction; Gaming Brands include CasinoClub, Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group operates a proprietary platform across 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 with operations in over 30 regulated or regulating 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