Entain plc (LON:ENT), the global sports betting and gaming group, has reported trading for the period 1 January to 31 March 2025.
· 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
| Q1 2025: 1 January to 31 March 2025 | |||||||
| TotalNGR | GamingNGR | SportsNGR | SportsWagers | SportsMargin | |||
| Reported7 | CC2 | CC2 | |||||
| UK & Ireland | +10% | +10% | +11% | +8% | +3% | +0.6pp | |
| Online UK&I | +22% | +23% | +24% | +18% | +10% | +0.4pp | |
| Retail UK&I | (1%) | (1%) | (4%) | +3% | (3%) | +1.2pp | |
| International4 | +0% | +5% | +1% | +8% | +3% | +0.7pp | |
| Online Int’l | (1%) | +4% | +1% | +7% | +4% | +0.4pp | |
| Retail Int’l | +7% | +11% | +6% | +12% | (2%) | +2.5pp | |
| CEE5 | +10% | +12% | +20% | +10% | +0% | +2.3pp | |
| Online CEE | +11% | +13% | +20% | +10% | +0% | +2.3pp | |
| Retail CEE | +9% | +11% | +25% | +9% | +2% | +2.6pp | |
| Group (exc. US) | +5% | +8% | +7% | +8% | +3% | +0.8pp | |
| Online | +6% | +10% | +11% | +9% | +4% | +0.6pp | |
| Retail | +1% | +2% | (3%) | +6% | (2%) | +1.7pp | |
| BetMGM1 | +36% | +34% | |||||
| Online | +39% | +37% | |||||
| Retail | (21%) | (22%) | |||||
| Total Group inc. 50% of BetMGM1 | +9% | +11% | |||||
| Online | +12% | +15% | |||||
| Retail | +1% | +2% | |||||
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
Access Code: 286020
A replay and transcript will be available on our website.
