Entain Plc · LSE:ENT
Entain — FY2024 Earnings Presentation
39 slides from Entain's earnings presentation, Mar 6, 2025
Slide 1: 2024 Full Year Results
2024 Full Year Results 6th March 2025
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. This presentation has been prepared by Entain PLC (“Entain”) so
Slide 3: Stella David, Interim CEO
Stella David Interim CEO
Slide 4: Agenda
Introduction & overview FY 2024 Financial review Agenda Strategic performance & outlook Summary Q&A
Slide 5: 2024 Overview
2024 Overview 2024 cemented foundations of Entain’s growth transformation • Significant operational progress • Inflection in NGR and EBITDA growth • FY24 results at top of upgraded guidance Delivering against our strategic goals… • Growth acceleration in “must win” markets - UK, Brazil, US • Stronge
Slide 6: Rob Wood, CFO & Deputy CEO
Rob Wood CFO & Deputy CEO
Slide 7: FY24 - Key financial highlights
FY24 - Key financial highlights Net Gaming Revenue Net Gaming Revenue EBITDA (inc. 50% BetMGM) (exc. 50% BetMGM) (exc. 50% BetMGM) £6.0bn £5.2bn £1.09bn +6%, +9%cc (proforma +4%cc) +7%, +9%cc (proforma +4%cc) +8%, +12%cc (proforma +5%cc) EPS1 exc. US Leverage Available Cash2 Dividend 3.1x >£1bn £119
Slide 8: 2024 marked an inflection point for Online
2024 marked an inflection point for Online Total Online NGR (exc. US) Return to organic growth • UK&I lapped regulatory headwinds in H2 13% • Returned to market growth in Q4 9% 9% • Brazil business outperformed 5% Operational progress 1% 0% • Product enhancements & launches • Tech focus on brilliant
Slide 9: NGR growth delivered across our business
NGR growth delivered across our business Segmental Net Gaming Revenue Online1 % of NGR YoY Growth Online NGR (exc. US) +6%, all segments in growth UK&I UK & Ireland 22% 2% • UK&I inflected sooner than anticipated Intl Australia 10% 1% • International outperformed, driven by Brazil Italy Brazil 7% 5%
Slide 10: 2024 EBITDA bridge
2024 EBITDA bridge Group EBITDA 2024 EBITDA of £1,089m, +8% YoY £+81m YoY (+8%, +12%cc) • Proforma1 EBITDA £+52m, +5%cc YoY £+52m YoY (+5%cc) FX EBITDA £-38m • Reflecting strengthening of GBP £70m £18m £1,089m £1,037m (£36m) M&A EBITDA £+67m £67m £1,008m • Benefit of 2023 acquisitions (£38m) Organic
Slide 11: 2024 Cashflow and net debt
2024 Cashflow and net debt Underlying free cashflow generation of £626m As at 31 December Key metrics 2024 2023 Leverage of 3.1x (3.5x inc. DPA) EBITDA1 £1,089m £1,008m • 2024 benefited from working capital inflow & FX Available cash of >£1bn Underlying free cashflow2 £626m £494m • Including new fac
Slide 12: 2025 Outlook
2025 Outlook Current trading Volumes in line with expectations, sports margin ahead Online Net Gaming Revenue Mid-single-digit % growth, on a constant currency basis Online EBITDA margin c25% Retail EBITDA Broadly flat year-on-year BetMGM Net Revenue $2.4 - 2.5bn BetMGM EBITDA EBITDA positive Note:
Slide 13: Medium-term outlook
Medium-term outlook Strong historic NGR and EBITDA growth to continue Regulation dampened historic organic EBITDA growth £5.5bn £1.3bn • Absorbed c£500m EBITDA regulatory impact1 £5.0bn £1.2bn • EBITDA growth supported by M&A £4.5bn £1.1bn Quality portfolio in attractive markets Net Gaming Revenue •
Slide 14: Medium-term outlook
Medium-term outlook Declining cash generation to stabilise in 2025, and reach >£0.5bn p.a. in the medium-term 2022 - 2024 cashflow declined c£-400m £0.8bn • UK regulatory impact • Interest rate rises £0.6bn • DPA settlement >£0.5bn • Partially offset by reduced BetMGM investment £0.4bn >£0.5bn annua
Slide 15: Stella David, Interim CEO
Stella David Interim CEO
Slide 16: Entain is…
Entain is… High quality portfolio with podium positions across attractive growth markets Iconic brands, talented colleagues, great heritage all the attributes to be a fantastic business Entain has huge potential and many exciting opportunities ahead 16
Slide 17: High quality portfolio of sustainable growth markets
High quality portfolio of sustainable growth markets % of Entain’s NGR from markets: Stable regulatory footprint 100% 98% of NGR from markets where 98% 98% we are already locally licenced 93% 85-90%1 80% Leadership positions 85-90%1 of NGR from markets 60% with podium position 40% Attractive growth
Slide 18: Strategy remains on track to deliver shareholder value
Strategy remains on track to deliver shareholder value Vision A leading player in the global sports betting & gaming sector Purpose To deliver the most entertaining customer experience supported by market-leading player protection Strategic Pillars Organic Margin Market revenue expansion share gains
Slide 19: Must win markets - UK&I
Must win markets - UK&I Execution Key Performance Indicators Net Gaming Revenue Weekly Gaming Online NGR Quarterly Online NGR YoY (trailing 3 months, Dec’22 = 100) (reported & Q4 normalised for sports margin) Brilliant basics 21% • Simplified customer journeys 128 • Front-end UX redesigns 121 • Spee
Slide 20: Must win markets - Brazil
Must win markets - Brazil Execution Key Performance Indicators Net Gaming Revenue Acquisition & Retention Quarterly Online NGR YoY Brilliant basics (trailing 12 months, Dec’22 = 100) (reported & Q4 normalised for sports margin) • Payment enhancements • Front-end UX redesigns 65% 178 New features 166
Slide 21: Must win markets - BetMGM
Must win markets - BetMGM Execution Key Performance Indicators Total Net Revenue iGaming YoY Quarterly Total Net Revenue YoY 55% (reported & Q4 normalised for bonus / sports margin) Brilliant basics • Front-end UX redesigns 36% 51% • Bet-slip journey improvement 18% 35% • Single digital wallet in Ne
Slide 22: Customer acquisition & retention underpin sustainable growth
Customer acquisition & retention underpin sustainable growth NRR (Retention KPI)1,2 NCC (Acquisition KPI)1,3 Entain approximate annual trailing twelve months trailing twelve months NGR by cohort, in a flat year 25% 95% New players Acquired 15% 90% 90% 20% in-year 106% 16% 85% 15% Reflecting 6% Onlin
Slide 23: Execution priorities
Execution priorities New free-to-play experiences Improved in-house Bet Builder for Football & Racing Product Performance Angstrom-only unique markets in the US Increased velocity of new localised gaming content Ongoing, global site speed & performance improvements Sportsbook stability & reliability
Slide 24: High quality portfolio, podium positions in attractive markets
High quality portfolio, podium positions in attractive markets New Largest 8 markets: UK USA Italy Australia Brazil Croatia Poland Zealand • Represents 80% of NGR • All podium positions1 % 2024 34% 14% 9% 8% 4% 4% 4% 3% Group NGR2 Market #3 #3 #3 #3 - #1 #1 #1 Retail complements Online position • Om
Slide 25: Summary
Summary Entain has all the attributes to be a truly great business High quality portfolio, with podium positions in attractive growth markets Clear strategy to return Entain to its winning ways Growth inflection with continuing momentum; well-placed for 2025 Established medium-term pathway to over £
Slide 26: Appendix
Appendix
Slide 27: 2024 Q4 trading
2024 Q4 trading NGR (cc) Q4-24 FY-24 Group inc. 50% of +9% +9% BetMGM • Underlying volumes ahead in Q4, boosted by strong Group exc. US +11% +9% sports margin Online +13% +12% • Further progression in Group NGR growth, +11%cc in (+13% PF) (+6% PF) Q4 ahead of +6%cc PF in Q3 UK& Ireland +21% +2% Inte
Slide 28: 2025 Guidance
2025 Guidance Online Cashflow • NGR growth of mid-single-digit% in constant currency • Working capital negative (partial reversal of 2024 inflow) • EBITDA margin of c25% • Underlying capex c£290m plus c£20m licenses costs1, and additional c£20m office investment2 • Cash interest c£240m, plus c£15m I
Slide 29: Project Romer, remains unchanged and on track
Project Romer, remains unchanged and on track achieved on track £m 2023 2024 2025 2026 Simplifying Entain’s operating model Operating Expenses 10 35 40 70 focused on customer experience Cost of Sales - - 30 30 Delivering technology at scale redesigned product and tech organisation Net savings 10 35
Slide 30: Financials: Group Income Statement
Financials: Group Income Statement Group NGR +9% cc1, +4%cc1 on a proforma4 basis with proforma Online NGR +6%cc1 Year ended 20244 20234 Change CC1 Proforma4 Online NGR +6%cc1, Retail flat cc1 31 December £m £m % % Net gaming revenue 5,162 4,833 7% 9% Group NGR +7% (+9% cc1), +4%cc1 on a proforma4 b
Slide 31: UK & Ireland
UK & Ireland NGR flat cc1 with Online +2%cc1 (H2 +14%cc1) evidencing our customer journey simplification and Retail (-1%cc1) performing in line with expectations Year ended NGR flat cc1 with Online +2%cc1 and Retail -1%cc1 31 December Total Online Retail • Online NGR +2%cc1 (H1 -8%cc1, H2 +14%cc1) 2
Slide 32: International
International Proforma4 NGR up +6%cc1 reflecting good performance in our key markets Year ended 31 December Total Online Retail NGR +6% (+10%cc1) with Online +6% (+10%cc1) and Retail +4% (+7%cc1) 20243 20233 Change 20243 20233 Change 20243 20233 Change £m £m % £m £m % £m £m % Proforma4 NGR +6%cc1 Sp
Slide 33: CEE (Croatia and Poland)
CEE (Croatia and Poland) Proforma4 NGR up +12%cc1 reflecting good performance in both Croatia (SuperSport) and Poland (STS) Year ended NGR +62% (+65%cc1) with Online +63% (+67%cc1) 31 December Total Online Retail and Retail +56% (+59%cc1) 20243 20233 Change 20243 20233 Change 20243 20233 Change £m £
Slide 34: Financials: Statutory Income Statement
Financials: Statutory Income Statement Year ended 20241 20231 Change Underlying depreciation and amortisation £345m 31 December £m £m % • Increase on 2023 driven largely by acquired businesses as well as recent Underlying EBITDA 1,089 1,008 8% investment in product and technology Share based payment
Slide 35: Financials: Separately disclosed items
Financials: Separately disclosed items One-off cash costs of £229m relating to payments under the DPA and delivery costs for Project Romer Profit & Loss1 Cashflow Cashflow Legal settlement (£161m) Period ended 2024 2023 2024 31 December £m £m £m • Payments associated with the DPA settlement • 2024 P
Slide 36: Financials: Cashflow
Financials: Cashflow Strong underlying free cashflow generation with closing net debt of £3.3bn and leverage 3.1x Period ended 2024 2023 Underlying working capital inflow of £105m 31 December £m £m • Largely due to a higher 2024 bonus accrual EBITDA 1,089 1,008 Adjusted net working capital1 105 (17)
Slide 37: Financials: Net debt
Financials: Net debt Closing leverage of 3.1x (3.5x inc. DPA liability) with sufficient liquidity to support the Group’s strategy and obligations Period ended Par Issue costs/ Total Net debt £3,339m or 3.1x (3.5x incl. DPA liability) 31 December 2024 Value modification £m £m gain Total available cas
Slide 38: Additional information
Additional information
Slide 39: Channel split
Channel split Online Retail Year ended 20243 20233 Change CC1 Proforma4 Year ended 20243 20233 Change CC1 Proforma4 31 December £m £m % % CC1 % 31 December £m £m % % CC1 % Sports wagers 14,393 13,721 5% 8% 1% Sports wagers 4,493 4,356 3% 4% 0% Sports margin 14.7% 13.7% 1.0pp 1.0pp 0.6pp Sports margi