Entain plc has provided an update on current trading and FY 2023 guidance, as well as plans to update shareholders on the progress of ongoing actions to accelerate operational performance and drive shareholder value.
Post the summer, Online Net Gaming Revenue (NGR) has been mixed across the Group, but in aggregate, softer than anticipated. Q3 Online NGR growth is now expected to be up high single-digit percent, and down high single digit percent on a proforma basis. Key drivers include:
- Adverse sporting results impacting sports margins during September
- Group wide implementation of industry leading safer gambling measures and ongoing regulatory headwinds persisting longer than expected, particularly in the UK
- Slower growth than expected in Australia and Italy
- Good underlying Online growth (ex-regulatory impacts) as evidenced by further strong proforma growth in active customers across the quarter
- Strong performance from recent acquisitions, particularly SuperSport in Croatia
- Robust performance across Retail
BetMGM in the US continuing to perform well: on track to deliver positive EBITDA in the second half of 2023; FY2023 NGR at the upper end of $1.8-$2.0bn guidance; and the successful rollout of Single Account Single Wallet, as well as online sportsbook enhancements supporting strong start to the NFL season.
Entain now expect Group Online NGR for FY2023 to be up low double-digit percent with proforma NGR down low single digit percent. The company reiterate their expectations for FY2023 EBITDA to be in the range of £1.00bn-£1.05bn supported by robust operational controls.
Actions to Accelerate Operational Strategy and Performance
Over the last three years Entain has undergone a significant strategic transformation, improving the quality of earnings and aligning operations to ensure the Group is positioned as strongly as possible to deliver long term shareholder value.
Alongside the Q3 trading update on 2 November 2023, management will share more detail on how these actions are being implemented to accelerate performance and delivery, including:
- A comprehensive market review focusing on long-term sustainable organic growth
- The simplification of Group structures and operations to improve operational leverage and reduce costs
- A plan for the migration of acquired businesses on to the Group’s industry leading technology platform
- Optimising our capital allocation priorities
- Progress on delivery of the Group’s Online EBITDA margin target of 30%
Jette Nygaard-Andersen, CEO of Entain, said: “We continue to see good underlying growth in our online business and are reiterating our EBITDA guidance for the year despite softer than expected revenue growth in Q3 and the ongoing roll-out of industry-leading safer gambling measures. We continue to attract more customers than ever before to enjoy our products and services. BetMGM remains on track to deliver positive EBITDA in H2 and a full year NGR performance at the top end of our expectations, and we are particularly excited about the product improvements that we are rolling out over the NFL season.
“We have made significant changes to the Group over the last three years. Our focus now is on accelerating the actions we are taking to drive sustainable organic growth, expand our margins, capitalise on the US opportunity and deliver long-term returns for our shareholders. We remain confident in our ability to deliver on the vast opportunities ahead of us, and look forward to sharing more detail about the changes that we are making alongside our Q3 trading update in November.”
PIN-UP Global Launches New Business Line Named PIN-UP.INVESTMENTS
The international ecosystem PIN-UP Global, representing a set of businesses in various segments of the gaming industry, has launched a new business line named PIN-UP.INVESTMENTS.
PIN-UP.INVESTMENTS was created to stimulate the development of technologies and products for the gambling market and related industries by providing financial and expert resources, high-value industry contacts, the opportunity to enter new markets and integrate into the ecosystem.
PIN-UP.INVESTMENTS invests in projects and products in gambling, traffic, software development, customer service, payment systems, advertising platforms, arbitrage teams, artificial intelligence based products.
INVESTMENTS provides funding, training and consulting opportunities through in-house ecosystem experts, practice on PIN-UP product and business model testing, accelerated product growth and entry into new markets, access to a network of industry contacts, strategic planning support and possible integration into the ecosystem.
“PIN-UP.INVESTMENTS is a logical step for our ecosystem, which always supports the passion and drive to succeed. Our new direction is aimed to help projects and teams both to develop independently and to successfully integrate into PIN-UP Global. We believe in daring solutions and new technologies that can be effective,” Marina Ilyina, CEO of PIN-UP Global, said.
Valley View Casino & Hotel Earns Prestigious Top Workplaces 2023 Award and Two National Awards by The San Diego Union-Tribune
Valley View Casino & Hotel in San Diego has received the Annual Top Workplaces Award and national honours for “Employee Appreciation” and “Professional Development”, as presented by The San Diego Union-Tribune.
The accolades are the result of an engagement survey. With a 62% response rate and an 82% satisfaction rating, Valley View Casino & Hotel’s team members echoed their positive experiences within the organisation.
Joe Navarro, President and Chief Executive Officer of the San Pasqual Casino Development Group, said: “Our tribe has worked hard to create a trusted environment for team members and guests, and we are proud to be recognized with this prestigious award, as well as recognized nationally.”
Judy Wright, Vice President of Human Resources at Valley View, said: “Being recognized with the Top Workplaces Award and the two national awards validate all the best practices and benefits we’ve put in place for our team members over the past 22 years. It truly is an honor to receive this award and a privilege to work for a company as great as Valley View Casino & Hotel.”
Continent 8 Appoints Khaled El-Din as Regional Sales Director
Continent 8 Technologies, the award-winning provider of managed hosting, connectivity, cloud and security solutions to the global online gambling industry, continues to drive growth with the appointment of Khaled El-Din as Regional Sales Director.
Based in the UK, Khaled joins Continent 8’s global sales team as it continues to enter new regulated markets around the world, a move that is increasing its addressable audience and customer base.
Khaled is a highly experienced sales specialist and joins the global IT business from swcomms where he was Sales Manager. He has also held sales roles at Solar Communications and Chartered Developments. His knowledge of infrastructure, connectivity and hosting solutions, plus his experience working with large organisations to determine their needs and creating bespoke solutions for them, makes him perfectly suited to Continent 8.
In his new role, he has been tasked with managing and amplifying existing customer relationships, as well as supporting the overall sales division with driving new revenue growth across core regulated markets including Europe and the Americas.
Nick Nally, Chief Revenue Officer at Continent 8 Technologies, said: “Khaled is a fantastic addition to our global sales team, and we look forward to benefiting from his experience, skills, and commitment to customer satisfaction, as we look to better support existing customers and connect with new ones.
“With Khaled in the team, we can keep driving awareness of our solutions and services among those not currently working with Continent 8, whilst doubling down on the support we provide to those that are.”
Khaled El-Din, Regional Sales Director at Continent 8 Technologies, said: “This is a very exciting time to be joining Continent 8 as demand for its managed hosting, connectivity, cloud and security solutions is on the rise.
“Continent 8 works with many of the biggest names in the industry, and it’s an honour to be working closely with the team, as well as an impressive collection of customers that trust in our solutions and our people. I am looking forward to playing a part in helping operators and suppliers access the infrastructure they need to succeed as the gambling market continues to grow at pace, globally.”
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