Entain tops 2022 earnings following busy Q4

Entain Plc has outperformed its FY2022 earnings guidance, following a strong close to year-end trading buoyed by peak online results. 

Publishing its Q4 2022 trading update, Entain delivered a ‘strong group performance’ as group net revenues (NGR) increased by +11% (+7% constant currency basis). 

Period trading saw the FTSE100 gambling group achieve a record online NGR of +12%, results reflecting a ‘highly engaging World Cup’ which saw active customer numbers hit record levels, up 14% versus the prior year. 

Further positives saw the firm’s retail unit continue its recovery reporting a 10% NGR uplift, attributed to stronger customer volumes recorded by Ladbrokes Coral estates. 

Providing a full-year outlook, including BetMGM US joint-venture results, Entain cites that group NGR will stand at +12%. Yet, its standalone full-year NGR will stand at -1% as the firm notes that revenue was dragged by absorbing high regulatory costs in the UK and Germany. 

European regulatory adjustments see Entain continue to focus on strengthening its broad customer appeal with active customers up 7% year-on-year. 

Further 2022 highlights sees Entain’s Retail NGR up 66%2 (+66% cc1,2), with volumes ahead of pre-COVID levels, as the unit sees market share gains operating in UK, Italy, Belgium, Ireland and Croatia. 

Reflecting positive Q4 results, Entain has upgraded its FY2022 EBITDA guidance to be in the range of  £985m–£995m ahead of its previous expectation of £950- £975m – results representing an EBITDA growth of circa 12%.

Entain carries strong momentum in 2023, in which its European portfolio will be strengthened by the M&A edition of Super Sport Croatia (transaction closed November 2022) – continuing the firm’s expansion in CEE markets.

In the US, group leadership maintains the headline target for the BetMGM JV to become EBITDA positive in H2 2023 and the longer-term objective of achieving “20-25% market share and 30-35% EBITDA margin”. 

BetMGM will be further boosted by a pledged investment of $150m, bringing Entain and MGM Resorts’ total investment in the US venture to $1.25bn

Group CEO Jette Nygaard-Andersen stated: “2022 has been another year of strong financial, operational and strategic progress for Entain. We have continued to grow our revenues in a sustainable and diversified way by expanding our global footprint, broadening our customer appeal, entering new areas of entertainment, and providing a safe environment for our customers. 

“All of this has led to a record number of active customers in Q4, as well as a full year EBITDA performance ahead of our previous expectations. We have started 2023 with good momentum across the business and remain confident in our ability to continue delivering on our growth and sustainability strategy in the year ahead.”