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Entain plc
("Entain" or the “Group”)
FY24 marked the Group’s return to organic growth with results at top of guidance
Continuing momentum sees business well placed for 2025
Entain plc (LSE: ENT), the global sports betting and gaming group, today reports its results for the year endedm31 December 2024 (“FY24”).
- Total Group Net Gaming Revenue (“NGR”), including 50% share of BetMGM, up +6%, +9%cc2, +4%cc2 proforma3
- FY24 Online NGR (exc. US) up +9%, +12%cc2, +6%cc2 proforma3 with improving momentum through the year
- Q4 Online NGR (exc. US) up +13%cc2, stronger than expected, including benefit of operator friendly sports margins
- Accelerating growth in “must win” markets:
- UK&I Online NGR returned to growth sooner than expected in Q3, and in Q4 grew +21%cc2 in line with market
- Brazil NGR grew +41%cc2 YoY, rebuilding strongly from +9%cc2 in Q1 to +65%cc2 in Q4
- In the US, BetMGM’s accelerating momentum and strategic refinement underpins our confidence in delivering positive EBITDA4 in 2025 and the pathway to $500m EBITDA4 in the coming years
- Margin expansion: Online EBITDA4 margin of 25.3%, ahead of expectations, benefiting from stronger than anticipated growth and operational efficiencies
- Group EBITDA4 of £1,089m, in line with upgraded5 guidance, +12%cc2 YoY, +5%cc2 proforma3
- Outlook: Year to date trading and ongoing operational execution s our expectation to grow FY25 Online NGR in line with underlying markets
- Entain remains comfortable with market expectations6 for FY25
- Pathway to generating over £0.5bn of annual adjusted 7 cash flow in the medium term
Stella David, Interim CEO of Entain, commented:
"2024 has been a year of transformation for Entain. I am delighted to see that our strategic and operational improvements are translating into strong performance; clear evidence that our strategy is delivering. I want to thank all my colleagues for their tremendous hard work and resilience.
Entain has a high quality portfolio of iconic brands with podium positions in attractive markets. Our return to organic growth is the beginning of our rebuild journey; our momentum continues, and we have started the year strongly. I am incredibly proud of our achievements so far and look forward to our opportunities ahead."
FY24 Trading performance:
Net Gaming Revenue (NGR) |
||||||
|
H1 |
H2 |
FY |
|||
YoY |
YoY cc2 |
YoY |
YoY cc2 |
YoY |
YoY cc2 |
|
UK & Ireland |
(6%) |
(6%) |
7% |
7% |
0% |
0% |
International |
7% |
3% |
5% |
9% |
6% |
6% |
CEE5 |
126% |
12% |
27% |
13% |
62% |
12% |
Total Group (exc US) |
6% |
0% |
7% |
9% |
7% |
4% |
Total Online |
9% |
1% |
9% |
11% |
9% |
6% |
Total Retail |
1% |
(4%) |
3% |
3% |
2% |
flat |
|
|
|
|
|
|
|
Total Group inc |
6% |
0% |
7% |
8% |
6% |
4% |
FY24 performance highlights
- Total Group NGR, including 50% share of BetMGM1, up +6%, +9%cc2, and +4%cc2 on a proforma3 basis
- Group NGR (exc. US) up +7%, +9%cc2, 4%cc2 proforma3
- Online NGR (exc. US) up +9%, +12%cc2, +6%cc2 proforma3, with active customers up +10% proforma3
- Retail NGR (exc. US) up +2%, +3%cc2, flat YoY proforma3, with strong Q4 driving growth in H2
- UK & Ireland NGR flat cc2, reflects our accelerating recovery through the year with Q1 -7% to Q4 +13%
- UK&I Online +2%cc2 with H2 growth of +14%cc2 evidencing our customer journey simplification and improving player experiences
- Actives customers grew +11% YoY
- Spend per head returned to growth in Q4 across both sports and gaming, for the first time since Q1-2021
- UK&I Retail -1%cc2 (+1%cc2 LFL) with H2 up +2%cc2 (+4% LFL) with the benefit from strong sports margins and the completion of our new Kascada cabinets rollout offsetting some softness in the Retail gaming market
- International NGR up +10%cc2, +6%cc2 on a proforma3 basis
- Brazil delivered excellent revenue growth, with FY24 NGR up +41%cc2 and actives +42%
- Australia NGR grew +1%cc2 YoY, despite softness in the underlying market
- Italy +3%cc2 (Online +2%cc2, Retail +4%cc2)
- Entain CEE5 continued to perform well with NGR up +12%cc2 proforma3, with SuperSport in Croatia performing particularly strongly at +16%cc2 YoY
- BetMGM delivered net revenue of $2.1 billion, up +7% YoY, with strengthened sports product and increased iGaming marketing investment driving acceleration in growth and player engagement metrics through the year
- Market share8 stabilisation at 14%, with iGaming (22%) and Online Sports (8%)
FY24 financial highlights
- Group EBITDA4 of £1,089m driven by proforma3 EBITDA growth of +5%cc2 and the annualisation of 2023 acquisitions
- Online EBITDA4 £941m, +11%, Retail EBITDA4 £261m, -11%
- Group loss after tax of £461m, reflecting separately disclosed items charge of £876m which include impairments following known regulatory changes and heightened competitor activity in certain smaller markets
- Adjusted diluted EPS9 of 29.9p, (46.9p exc. US)
- Second interim dividend of c£60m (9.3p per share) proposed, bringing the total dividend for the year to £119m (18.6p per share)
- Robust balance sheet with adjusted10 net debt of £3,339m and available cash of over £1bn at 31 December 2024
- Project Romer efficiency programme on track with upgraded annual net savings target of £100m in 2026
FY24 summary: 1 January to 31 December 2024
Total Group (ex US) |
Reported1 |
|||
|
2024 |
2023 |
Change |
CC2 |
Year ended 31 December |
£m |
£m |
% |
% |
Net gaming revenue (NGR) |
5,161.9 |
4,833.1 |
7% |
9% |
Revenue |
5,089.2 |
4,769.6 |
7% |
9% |
Gross profit |
3,118.1 |
2,907.0 |
7% |
|
Underlying EBITDA4 |
1,088.8 |
1,007.9 |
8% |
|
Underlying operating profit11 |
616.6 |
641.8 |
(4%) |
|
Underlying (loss)/profit before tax11 |
518.4 |
444.9 |
16% |
|
Profit after tax pre separately disclosed items |
379.5 |
339.1 |
||
Loss after tax |
(461.0) |
(878.7) |
||
Basic EPS (p) |
(70.8) |
(141.4) |
||
Continuing adjusted diluted EPS9 (p) |
29.9 |
44.2 |
||
Continuing adjusted diluted EPS excl US9 (p) |
46.9 |
51.0 |
||
Dividend per share (p) |
18.6 |
17.8 |
||
|
||||
Q4 2024 Trading performance:
|
Q4 2024: 1 October to 31 December 2024 |
|||||||
Total NGR |
|
Gaming NGR |
Sports NGR |
Sports Wagers |
Sports Margin |
|||
Reported13 |
CC2 |
|
Proforma CC2,3 |
|||||
|
||||||||
UK & Ireland |
+13% |
13% |
|
+6% |
+24% |
+2% |
+3.3pp |
|
Online UK&I |
+21% |
+21% |
13% |
+45% |
+5% |
+3.5pp |
||
Retail UK&I |
+5% |
+6% |
(4%) |
+16% |
(1%) |
+3.2pp |
||
|
||||||||
International |
+4% |
+10% |
|
+3% |
+14% |
+5% |
+1.2pp |
|
Online Int’l |
+3% |
+9% |
+3% |
+14% |
+6% |
+1.0pp |
||
Retail Int’l |
+8% |
+12% |
+2% |
+14% |
(1%) |
+2.3pp |
||
|
||||||||
CEE |
+12% |
+14% |
|
(3%) |
+22% |
+1% |
+4.6pp |
|
Online CEE |
+11% |
+14% |
(2%) |
+22% |
+1% |
+4.4pp |
||
Retail CEE |
+13% |
+16% |
(11%) |
+21% |
+1% |
+5.4pp |
||
|
||||||||
|
|
|
|
|
|
|
|
|
Group (ex US) |
+8% |
+11% |
|
+4% |
+18% |
+4% |
+2.0pp |
|
Online |
+9% |
+13% |
+6% |
+20% |
+5% |
+1.7pp |
||
Retail |
+6% |
+8% |
(4%) |
+15% |
(1%) |
+3.0pp |
||
BetMGM |
(5%) |
+0% |
|
|
|
|
|
|
Total Group inc. 50% of BetMGM |
+6% |
+9% |
|
|
|
|
|
|
Capital Allocation Committee
The Capital Allocation Committee remains committed to delivering shareholder value, continuing to monitor the Group’s strategic progress alongside its significant capital commitments.
Dividend
In line with the Group’s progressive dividend policy, the Board has proposed a total dividend for 2024 of c£119m, (18.6p per share), paid to shareholders in equal instalments with H1 and FY results. As such a second interim dividend of c£60m (9.3p per share), is expected to be paid on 25 April 2025 to shareholders on on 14 March 2025.
Current trading
The Group has started the year strongly, with the momentum seen during 2024 continuing into 2025. Trading year to date reflects the benefit from operator friendly sports margins, and volumes in line with our expectations. In the US, BetMGM’s accelerating performance has also continued into 2025 including record SuperBowl results.
Guidance
Entain has now ed through the most significant operational impacts of previous regulatory changes which created performance headwinds. As such, we expect mid-single-digit percent growth in Online NGR in 2025, in line with our weighted average for underlying markets.
Entain remains comfortable with market expectations 6 for FY2025. 2025 Online EBITDA margin is expected to be c25%, broadly flat year on year, with our increasing scale and operational efficiencies offsetting the impact of Brazil now operating in the newly regulated and locally taxed market from 1 January 2025.
Continued operational and strategic progress underpin our confidence in Entain’s pathway to generating over £0.5bn of annual adjusted 7 cash flow in the medium term.
As previously announced12, BetMGM expects FY25 to deliver revenue of $2.4-$2.5 billion and positive EBITDA.
Notes
- 2024 reported numbers are audited and relate to continuing operations
- Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2024 exchange rates
- Proforma references include all 2023 acquisitions as if they had been part of the Group since 1 January 2023
- 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
- As detailed in the 2024 Q3 Trading Update published on 17 October 2024
- Consensus EBITDA FY25 £1,109m as confirmed in 11 February 2025 statement
- Annual adjusted cash flow excludes working capital, dividends, acquisitions and associated financing
- Consolidated Gross Gaming Revenue (GGR) market share consists of last three months ending October, November, or December 2024 as latest reported for U.S. sports betting markets where BetMGM was active (online and retail), last three months ending December 2024 for U.S. iGaming markets where BetMGM was active, and last three months ending December 2024 for the Ontario market. Internal estimates used where operator-specific results are unavailable
- Adjusted for the impact of separately disclosed items, foreign exchange movements on financial indebtedness and losses/gains on derivative financial instruments (see note 9 in the interim financial statements)
- Adjusted net debt excludes the DPA settlement. Leverage also excludes any benefit from future BetMGM EBITDA or the payments due to acquire the minority interests in Entain CEE
- Stated pre separately disclosed items
- As detailed in the 2024 BetMGM FY Update published on 4 February 2025
- These results are unaudited
Enquiries:
Investor Relations - Entain plc |
|
Media - Entain plc |
|
Sodali & Co Rob Greening/Russ Lynch/Sam Austrums |
Tel: +44 (0) 20 7250 1446 |
Presentation and webcast
Entain will host our Full Year 2024 Results presentation and Q&A session today, Thursday 6th March at 9:30am GMT, at Bank of America, 2 King Edward Street, City of London, London, EC1A 1HQ.
Analysts and investors are welcome to attend in person, having pre-ed via the in-person registration link. Alternatively please the webcast approximately 15 minutes ahead of the event: online webcast link.
The presentation slides as well as a replay and transcript will be available on our website:
/investor-relations/results-centre/
dates:
Annual General Meeting 23 April 2025
Q1-25 Trading Update: 29 April 2025
2025 Interim results: 12 August 2025
Dividend Timetable
Announcement date: 6 March 2025
Ex-Dividend date: 13 March 2025
Record date: 14 March 2025
Payment date: 25 April 2025
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) as it forms part of English law by virtue of the European Union (Withdrawal) Act 2018, the UK 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 BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. 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 t 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.casinowinning.net.
LEI: 213800GNI3K45LQR8L28