Entain plc (LON:ENT), the global sports-betting and gaming entertainment group, has reported trading for the period from 1 January to 31 March 2021.
Q1 Highlights
· Strong first quarter Online, continuing the momentum seen at the end of 2020, in line with expectations
· Online net gaming revenue (“NGR”) +33% (+32%cc1) marks Entain’s 21st consecutive quarter of double digit Online NGR growth
o Strong performance in all major markets with NGR growth of +44%cc1 excluding Germany
o Sports NGR continued to benefit from favourable margins
· Retail significantly impacted by Covid restrictions with shops almost all entirely closed for the quarter
· Completed acquisitions of Bet.pt in Portugal and Enlabs AB in the Baltics, underpinning further progress of Entain’s strategic expansion into new regulated markets
· BetMGM continues to demonstrate strong momentum:
o Overall market share where BetMGM operates of 19%2,3
o Consistent #1 iGaming operator for whole of US, with 23%3 market share
o Ready to challenge for the #2 position for Sports betting and iGaming across the US
o Further details will be provided at the BetMGM Business Update on 21 April
· Ongoing focus and advances under our Sustainability Charter
o Trials of ARC, the ground-breaking Advanced Responsibility and Care player protection programme, now under way
o ESG rating upgraded to AA by MSCI rating agency
o Share Save employee share ownership plan launched across the Group to enable our people to share in the future success of the Group
o Further strengthening and diversification of the Board with recent appointments of Stella David, Vicky Jarman and Mark Gregory
o Commitment to be Carbon NetZero by 2035 based on science-based targets; Carbon Trust Standard for Carbon emissions achieved in 2020
o Awarded ISO for Environmental Management and Occupational Health & Safety
Q1: Period 1 January to 31 March 2021
| TotalNGR | TotalNGR cc1 | Sport Wagers | Sport Wagers cc1 | Sports Margin | |
| Online | |||||
| Sports | 47% | 44% | 45% | 42% | +0.1pp |
| Gaming | 23% | 23% | |||
| Total Online | 33% | 32% | |||
| Retail4 | (99%) | (99%) | (98%) | (98%) | +3.5pp |
| Total Group | (13%) | (13%) |
Notes
(1) Growth on a constant currency basis is calculated by translating both 2021 and 2020 performance at the 2021 exchange rates
(2) BetMGM revenues comprise of sports (Online and Retail) and iGaming revenues
(3) BetMGM market shares for the three month period to February 2021
(4) Retail operates in UK, Italy, Belgium and Republic of Ireland. Retail numbers are quoted on a LFL basis. During Q1, there were an average of 4,662 shops/outlets in the estate, compared to an average of 4,843 for the same period last year.
Jette Nygaard-Andersen, CEO, commented:
“This has been another very successful and productive quarter with Entain making excellent progress across a number of our strategic priorities. This is testament to the hard work and dedication of our people across all aspects of our business. I am delighted that they will now have the opportunity to share in the future success of Entain through our new Share Save plan.
We saw excellent growth across all our major markets other than Germany where regulatory changes have impacted the market. BetMGM continues to exhibit outstanding momentum with impressive market share growth. Our acquisitions of Bet.pt and Enlabs underpin further progress on our strategic expansion into new regulated markets.
With some easing of Covid restrictions, we are delighted to be welcoming customers back into our shops. While it has only been a handful of days since the re-opening in parts of the UK on the 12 April, we look forward to returning to more normal trading across our whole business.
In line with our expectations, the momentum from the end of 2020 has carried into 2021. Although Covid creates some near-term uncertainty, by maintaining our focus on the customer, providing them with great products and services, we remain confident and excited in our long-term prospects.”
