2020 Full Year Results

Jay DossetterNews

4 March 2021

Click here to download a PDF of the full release

Entain plc
(“Entain” or the “Group”)

Strong performance driven by a diversified business and an exceptional online offering

Well positioned for further growth across international markets

Entain plc (LSE: ENT), the global sports-betting and gaming Group, is pleased to announce its results for the year ended 31 December 2020 delivering strong growth across its international operations with further opportunities in new markets.

Operational Highlights:

  • BetMGM, the joint venture with MGM Resorts, now live in 12 states with strong momentum as a leading player in the US market
    • Market share8 up to approximately 18% across its live markets
    • Number one operator in iGaming in January 2021 across the US
    • Full year revenues of $178m, ahead of expectations
    • Business update scheduled for 21 April 2021
    • Strong growth across the Group
      • 20 consecutive quarters of double-digit online net gaming revenue (“NGR”) growth
      • Growth, and market share gains, across all major markets with particularly strong performances in Australia, Brazil, Georgia and Italy as well as from PartyPoker across all its markets
      • Further expansion into regulated markets with the launch of bwin in Colombia and planned acquisitions of Bet.pt in Portugal and Enlabs AB in the Baltics
    • Sustainability Charter launched to reinforce the Group’s commitment to delivering best in class ESG
      • Commitment to only operate in regulated markets by 2023, with 99% of NGR from regulated or regulating markets at 31 December 2020
      • Launch of ARC, our Advanced Responsibility and Care programme, to revolutionise player protection through the use of proprietary technology
      • Launched £100m Entain Foundation to support research into gaming safety and investment in communities
      • The Group has committed to go net-zero for greenhouse emissions by no later than 2035 and has joined the Science Based Target initiative to formalise the commitment
      • Recognised by the Carbon Trust and EGR Diversity & Inclusion awards, and included in the Dow Jones Sustainability and FTSE4Good indices
      • Relocation of Entain’s place of management and control – and consequently its tax residence – to the UK
    • Jette Nygaard-Andersen appointed CEO on 21 January 2021

    Financial Highlights:

    • Strong financial performance with Group EBITDA5,9 up 11% at £843.1m, at the top end of recently increased expectations
      • Online NGR up 28%cc
      • Online EBITDA5,9 +50% at £803.5m reflecting the shift to online during the pandemic as well as good sports margins
      • Retail significantly impacted by Covid-19 with EBITDA5,9 for the year at £98.3m
    • Group Profit after tax9 was £113.8m compared with a loss of £131.2m in 2019
    • Underlying free cashflow10, before the investment into BetMGM, of £513m
    • Year end net debt of £1,766.6m with leverage at 2.1x with balance sheet flexibility to support our growth strategy

    Jette Nygaard-Andersen, CEO of Entain, commented:

    “Having spent more than two decades working with digital companies using technology to transform and disrupt industries, I am hugely excited about the future prospects for Entain.  We are a digital entertainment company with a clear strategic focus on growth and sustainability.  As such, we have a fantastic platform from which to use our proprietary technology to expand into new markets and reach new audiences around the world.

    Today’s results demonstrate the extraordinary resilience and professionalism of our people, as well as the importance of having a truly diversified business model that is not overly reliant on any one product, brand, territory, or channel.  Furthermore, we firmly believe that the launch during the year of our Sustainability Charter, which includes our game-changing Advanced Responsibility & Care player protection programme, will be a key component in helping us to deliver on our vision of being the world-leader in sports-betting and gaming entertainment.

    The strong underlying momentum within our business, the rapid growth of our US joint-venture, and our continuing international expansion mean that we are as confident as ever in the long-term prospects for Entain.”

    Group

    Reported1,2,9

    Pre IFRS 163,9

    Year ended 31 December

    2020

     2019

    Change

    CC4

    2020

    2019

    Change

    £m

    £m

    %

    %

    £m

    £m

    %

    Net gaming revenue (NGR)

    3,628.5

    3,632.7

    flat

    1%

    3,628.5

    3,632.7

    flat

    Revenue

    3,561.6

    3,578.1

    flat

    3,561.6

    3,578.1

    flat

    Gross profit

    2,308.6

    2,368.8

    (3%)

    2,308.6

    2,368.8

    (3%)

    Underlying EBITDAR5

    862.1

    782.9

    10%

    862.1

    782.9

    10%

    Underlying EBITDA5

    843.1

    761.4

    11%

    764.7

    678.9

    13%

    Underlying operating profit6

    529.5

    520.6

    2%

    507.2

    490.8

    3%

    Profit after tax

    113.8

    (131.2)

    Basic EPS (p)

    15.8

    (24.8)

    Adjusted diluted EPS7 (p)

    62.8

    64.3

    Dividend per share (p)

    17.6

    Dividend
    Given the ongoing uncertainty as a result of Covid-19, the Board does not consider it prudent to pay a dividend at this time.  However, the Board recognises the importance of dividends for shareholders and will consider dividend payments with future results.

    Outlook
    The Group performed strongly through a difficult year reflecting both the diversified nature of our business model and the quality of our people.  We have started the year with good momentum in line with expectations and we hope to see normality returning over the coming months.  As a result we remain confident in our own financial performance and long-term prospects.

    Notes

    • 2020 and 2019 reported results are audited
    • Reported results are provided on a post IFRS 16 implementation basis
    • Pre IFRS 16 results are unaudited and show the Group’s results before any adjustment is made for IFRS 16
    • Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2020 exchange rates
    • 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. Both EBITDAR and EBITDA are stated pre separately disclosed items
    • 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 10)
    • BetMGM market in which it operates for the three months to 31 January 2021
    • Reflecting the results of continuing operations
    • Underlying free cashflow is EBITDA less working capital, capital expenditure, finance lease, corporate taxes and before the investment in BetMGM

    Enquiries:

    Investor Relations

    Entain plc
    David Lloyd-Seed, Group Director of IR & Corporate Communications
    Davina Hobbs, Senior IR Manager
    Jennifer Spencer, IR Manager

     

    investors@entaingroup.com
    david.lloyd-seed@entaingroup.com
    davina.hobbs@entaingroup.com
    jennifer.spencer@entaing

    roup.com

    Media
    Entain plc
    Tessa Curtis, Head of Media Relations
    Jay Dossetter, Head of ESG and Press Office

    tessa.curtis@entaingroup.com
    jay.dossetter@entaingroup.com

    Powerscourt
    Rob Greening / Elly Williamson

    Tel: +44 (0) 20 7250 1446
    entain@powerscourt-group.com

    Conference call
    An analyst call will be held at 9:30am (GMT) today. The corresponding presentation will be posted on the Group’s website shortly before the call: https://entaingroup.com/investor-relations/results-centre/

    Participants may join the call by dialling one of the following numbers approximately 10 minutes before the start of the call:

    To participate in the Q&A, please also connect via the conference call dial in details.

    UK +44 (0) 33 0606 1122
    US +1 646 813 7960
    Room number: 133775
    Participant PIN: 6876

    There will be a live webcast available via the following link:https://brrmedia.news/gatk9

    A replay of the conference call and transcript will be available on our website:

    https://entaingroup.com/investor-relations/results-centre/

    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 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 bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The Group owns proprietary technology across all of 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 also entered into a joint-venture with MGM Resorts to capitalise on the sports-betting and gaming opportunity in the US. The Group is tax resident in the UK with licenses in more than 20 countries, across five continents.

    For more information see the Group’s website: www.entaingroup.com

    LEI: 213800GNI3K45LQR8L28

    Click here to download a PDF of the full release