Entain PLC - Q1 Trading Update

29 April 2025

Entain plc

("Entain" or the "Group")

Strong start to FY25 with Q1 Group Net Gaming Revenue ahead of expectations

Entain plc (LSE: ENT), the global sports betting and gaming group, today reports trading for the period 1 January to 31 March 2025 ("Q1").

·      Better than expected Q1 performance supported by ongoing operational progress

·   Total Group Net Gaming Revenue ("NGR"): including 50% share of BetMGM¹, up +9%, +11%cc² with strong Q1 Online performances from both Entain and BetMGM¹ (Online inc. US, +12%, +15%cc²)

·     Q1 Online NGR exc. US: up +6%, +10%cc², ahead of expectations primarily due to strong volumes in the UK, as well as operator friendly sports results

o  UK&I Online NGR +23%cc, ahead of expectations; Brazil NGR +31%cc², in line with expectations

·      BetMGM¹ Q1 stronger than expected: NGR +34%cc² YoY and on track to be EBITDA³ positive in FY25

·      Stella David appointed as CEO providing leadership continuity and momentum in strategic execution

·      FY25 outlook: reiterating expectation of mid-single-digit constant currency growth in Online NGR

Stella David, CEO of Entain, commented:

"We have made a strong start to 2025. Our improving operational execution saw us exit 2024 with clear momentum which has continued in Q1. Entain has a clear and compelling strategy with today's results further evidence of its delivery. We are in the early stages of our journey of improvement and are driving ahead at pace.  

Entain's portfolio of podium positions in attractive and regulated growth markets underpins the structural growth embedded in our business. We are confident that our current momentum and underlying growth will deliver quality and sustainable earnings with a clear pathway to generating over £0.5 billion of annual cashflow in the medium term."

Q1 trading highlights:

·      Group NGR exc. US up +8%cc² (Online +10%cc², Retail +2%cc²)

o  Better than expected performance reflects strong UK&I Online volumes partially offset by softer UK&I Retail gaming volumes, as well as the benefit of operator friendly sports results

o  Online NGR up +10%cc² with volumes and sports margins ahead of expectations

o  Retail NGR up +2%cc² as sports margin benefit was partially offset by lighter UK gaming volumes

·      UK & Ireland NGR up +10%cc² (Online +23%cc², Retail -1%cc²)

o  UK&I Online NGR beat expectations due to strong volume growth (+21%), which we anticipate will be ahead of the market

·      International⁴ NGR up +5%cc² (Online +4%cc², Retail +11%cc²)

o  Brazil NGR +31%cc² continued to perform strongly, adapting well to the new licenced market regime

o  Australia NGR -8%cc² reflecting customer friendly sports results

·      Entain CEE⁵ NGR +12%cc² (Online +13%cc², Retail +11%cc²) with Croatia continuing to perform particularly strongly

·      BetMGM¹ Q1 NGR was ahead of expectations at +34%cc², driven by our leading iGaming offering, strengthened sports product and refined player engagement

o  Record iGaming revenues in Q1 with NGR up +27% and record Online Sports NGR up +68%

o  Q1 EBITDA³ of $22m, driven by positive contribution from both iGaming and Online Sports

Outlook  

Entain is encouraged by year-to-date trading, with strong Online volume growth supported by operator friendly sports margins in Q1.

Entain reiterates its expectation for Online NGR growth of mid-single-digit percent in 2025 on a constant currency basis and remains comfortable with market expectations⁶ for FY2025 EBITDA.

BetMGM¹ has also enjoyed a strong start to the year and has increased confidence in delivering its revenue expectations of $2.4-$2.5 billion and to be EBITDA³ positive in FY25.

Ongoing operational and strategic progress underpins confidence in Entain's pathway to annual cash generation pre dividends of over £0.5bn in the medium term.

Q1 2025 Trading performance

Notes

(1)   BetMGM revenues comprise of Online (Sports and iGaming), and Retail (Sports plus Other) revenues

(2)   Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2025 exchange rates

(3)   EBITDA is defined as earnings before interest, tax, depreciation and amortisation, share based payments and share of JV income. EBITDA is stated pre-separately disclosed items

(4)   International segment comprises of all other countries outside the UK & Ireland, Entain CEE and US reporting segments, including Australia, Italy, Brazil, Netherlands, Georgia, New Zealand, Germany and Spain

(5)   Entain Central and Eastern Europe segment (Entain CEE) comprises of Croatia and Poland

(6)   Company complied consensus EBITDA FY25 £1,110m as at 24 April 2025

(7)   2025 results are unaudited, with the tables presented relating to continuing operations and including both statutory and non-statutory measures

Q1 Conference Call & Audio Webcast

An analyst call will be held today, Tuesday 29 April 2025 at 9:00am BST. Participants may join via webcast or by conference call dial in, approximately 10 minutes before the start of the call.

Live webcast link: Entain Group 2025 Q1 Trading Update

To participate in the Q&A, please use dial ins below and register via the following link: Register for Q&A

                UK                           +44 20 3936 2999

                US                           +1 855 979 6654

                Global Dial-In Numbers

                Access Code:        286020

A replay and transcript will be available on our website: Results Centre - Entain Group

Enquiries

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 BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS and SuperSport; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The group operates the TAB NZ brand as part of a long-term strategic partnership with TAB New Zealand. 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 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 and is the only global operator to exclusively operate in domestically regulated or regulating markets operating in over 30 territories.

Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AAA rated by MSCI. For more information see the Group's website: www.entaingroup.com.

Important notices

Certain statements in this announcement are forward-looking statements which are made in good faith, including with respect to Entain's current expectations, intentions and projections regarding its future performance, strategic initiatives, anticipated events or trends and other matters that are not historical facts and which are, by their nature, inherently predictive, speculative and involve risks and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. All statements that address expectations or projections about the future, including statements about operating performance, strategic initiatives, objectives, market position, industry trends, general economic conditions, expected expenditures, expected cost savings and financial results are forward‐looking statements. Any statements contained in this announcement that are not statements of historical fact are, or may be deemed to be, forward‐looking statements. These forward-looking statements, which may use words such as "aim", "anticipate", "believe", "could", "intend", "estimate", "expect", "may", "plan", "project", "will" or words or terms of similar meaning or the negative thereof, are not guarantees of future performance and are subject to known and unknown risks and uncertainties. There are a number of factors including, but not limited to, commercial, operational, economic and financial factors, that could cause actual results, financial condition, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Entain's ability to control or estimate precisely, such as changes in taxation or fiscal policy, future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governments or governmental regulators, or other risk factors, such as changes in the political, social and regulatory framework in which Entain operates or in economic or technological trends or conditions, including inflation, recession and consumer confidence, on a global, regional or national basis. Given those risks and uncertainties, readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this announcement. Entain and its affiliates, and any of its or their respective directors, officers, partners, employees, advisers or agents (collectively, "Representatives") expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise unless required to do so by applicable law or regulation.

In particular, no statement in this announcement is intended to be a profit forecast or profit estimate and no statement of a financial metric (including estimates of EBITDA, profit before tax, free cash flow or net debt) should be interpreted to mean that any financial metric for the current or future financial years would necessarily match or exceed the historical published position of Entain and its subsidiaries. Certain statements in this announcement may contain estimates. The estimates set out in this announcement have been prepared based on numerous assumptions and forecasts, some of which are outside of Entain's influence and/or control, and is therefore inherently uncertain and there can be no guarantee or assurance that it will be correct. The estimates have not been audited, reviewed, verified or subject to any procedures by Entain's auditors. Undue reliance should not be placed on them and there can be no guarantee or assurance that they will be correct.

This announcement is being issued by and is the sole responsibility of Entain. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by or on behalf of, Entain (apart from the responsibilities or liabilities that may be imposed by the Financial Services and Markets Act 2000, as amended or the regulatory regime established thereunder) or by its affiliates or any of its Representatives as to, or in relation to, the accuracy, adequacy, fairness or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers or any other statement made or purported to be made by or on behalf of Entain or any of its affiliates or any of its Representatives in connection with Entain and any responsibility and liability whether arising in tort, contract or otherwise therefore is expressly disclaimed.

LEI: 213800GNI3K45LQR8L28