Entain Announces Third Quarter 2023 Trading Update

Q3 Highlights

  • Total Group (including US) Net Gaming Revenue (“NGR”) +7% Up (+10% cc)
    GROUP NGR (excluding U.S.) up +7% (+9% cc), -5% proforma
  • ONLINE NGR +9% (+11%cc), -6% PROFOM INCREASE AS UPDATE EXPECTED
    Excluding known regulatory impact, online NGR up +17%, flat proforma
    September Customer-Friendly Sports Results Impact 2-3 ppt
    Continuous growth for active customers, +26% YoY (+10% propa)
  • Robust performance from Retail6 with 4% (+4% cc) increase in NGR, -4% proforma
  • BetMGM is up about 15% year-on-year CONTINUES STRENGTH AT Q3 NGR OF ABOUT $458 MILLION
    Operating (excluding New York) on sports betting and online gaming at 18% market share
    Continued strength in iGaming with 26% market share
    A Successful Start To NFL Season As Online Sports Betting Customers Improve Customer Experience With Significant Investments
    FY 2023 NGR WILL BE ON TRACK AT THE TOP OF GUIDANCE OF $1.8 BILLION TO $2 BILLION AND BE EBITDA PLUS FOR HALF OF 2023
  • Delivering continuous leadership and progress through the sustainability charter

Accelerate operational strategies 파친코

Over the past three years, Entain has undergone an important strategic transition to optimally position the group, improve the quality of revenue, strengthen operations, and restructure to leverage future growth opportunities and deliver shareholder value.

In today’s presentation, management will outline key initiatives to accelerate the following groups’ operational strategies:

  • Focus on market portfolios optimized for organic growth and ROI
    Prioritizing high-growth, high-yield markets, including U.S., Brazil CEE and New Zealand
    Boosting profitable growth in key markets including UK, Australia, Italy, Germany and Baltic
    End of small non-core operations
  • Return to organic growth at least in line with our market (c.7% CAGR) from 2025
  • Increase U.S. market share by 20% to 25% by investing in product and pricing capabilities, securing customers, and maximizing omnichannel opportunities
  • PROJECT ROMER PROVIDED TO SUPPORT ONLINE EBITDA MARGIN EXPANSION AT 28% BY 2026 AND 30% BY 2028
    Simplify your organization to increase operational leverage and increase cost-effectiveness
    Total cost savings of 100 million by 2025 (net cost savings of 70 million)
  • Improved governance:
    Plans to appoint 4 new non-executive directors, including Amanda Brown appointment, effective November 8, 2023
    Composition of non-executive director capital allocation committee

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