Entain issues H1 results

Last updated Aug 11, 2022

Entain plc has reported 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
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%cc)
- Online NGR down 7% (-7%cc) 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
- Excluding the Netherlands, NGR was down -3%cc
- Strong underlying momentum with H1 Online NGR 3yr CAGR up 13%cc
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% market share where BetMGM operates (excluding New York)
- Consistent leading iGaming operator with 30% market share
- Reiterate expectation to reach positive EBITDA during 2023
Group EBITDA up 17% at £471m
Group profit after tax from continuing operations £28m, down £63m
FY 2022 Group EBITDA expected to be in the range of £925m to £975m, in line with current consensus
New progressive dividend policy announced:
- 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, said: “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.”

Entain