Entain PLC · LSE:ENT
Entain — Gala Coral Group — H1 FY16 Earnings Presentation
13 slides from Entain's earnings presentation, Jun 8, 2016
Slide 1: FY16 H1 Results
GALA CORAL GROUP FY16 HI Results 8' June 2016
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation may include forward-looking statements. All statements other than statements of historical facts included in this presentation, including those regarding Gala Coral’s financial position, business and acquisition strategy, plans and objectives o
Slide 3: Overview, Current Trading and Outlook, FY16 H1 Results
Overview Carl Leaver Current Trading Carl Leaver and Outlook FY16 H1 Results Paul Bowtell Q&A 2
Slide 4: Overview
Overview H1 FY16 RESULTS: [1/2] • Coral Group EBITDA of £124.6m +£17.2m (+16%) [3] • After adjusting for regulatory impacts +£37.5m (+43%) with a £22m bounceback in football margins • Strong net revenue growth across all primary websites • Coral.co.uk +58%, Eurobet.it +38%, Galabingo.com +15% • 757k
Slide 5: Current Trading and Outlook
Current Trading and Outlook • Responsible Gambling • Harm minimisation - Auto self-exclusion - Reality checks • AML • Momentum into H2 • Coral mobile app re-launched on proprietary platform • Coral Connect sign-ups accelerating: FY16 H1 sign ups of 160k already ahead of the total signed up in the wh
Slide 6: FY16 H1 Results
FY16 H1 Results Paul Bowtell 5
Slide 7: FY16 H1 Results
FY16 H1 Results Continuing Operations [1] FY16 FY15 Change £m £m % Net Revenue - Coral Retail +4% Net revenue [2] 604.9 534.4 13% - Eurobet Retail +29% - Online +35% Cost of sales (191.8) (160.0) (20%) Tax and Regulatory (up £26.8m year-on-year) Gross profit 413.1 374.4 10% - Cost of sales includes
Slide 8: FY16 H1 EBITDA Bridge
FY16 H1 EBITDA Bridge Coral Retail £14.5m Coral.co.uk £3.3m Gala websites £2.3m Coral Telebet £0.2m 4.3 (0.7) (1.7) 3.2 12.6 Coral Retail +£14.9m 4.9 - OTC margin improvement+1.3pp (20.3) - Machines net revenue +3% 14.9 Eurobet Retail +£4.9m - Sports stakes growth +20% - Sports margins +4.0pp 124.6
Slide 9: Coral Retail FY16 H1 Profit & Loss
Coral Retail FY16 H1 Profit & Loss FY16 FY15 Change OTC Stakes 1% behind – shop closures and recycling impact £m £m % OTC gross win margin of 18.5% OTC stakes 905.5 919.0 (1%) (+1.3pp) driven by improved OTC gross win margin % 18.5% 17.2% 1.3pp football margins up 7.8pp year- OTC gross win 167.2 158
Slide 10: Eurobet Retail FY16 H1 Profit & Loss
Eurobet Retail FY16 H1 Profit & Loss FY16 FY15 Change Sports stakes +20% driven by £m £m % shop optimisation. BiP stakes growth +36%, now around 20% of Sports stakes 204.7 170.4 20% total sports stakes Sports gross win margin % 18.8% 14.8% 4.0pp Sports stakes market share 16.0% Sports net revenue 38
Slide 11: Online FY16 H1 Profit & Loss
Online FY16 H1 Profit & Loss FY16 FY15 Change £m £m % Coral.co.uk - Actives +30% Coral.co.uk net revenue 86.1 54.5 58% - Sports SPH +17% Gala websites net revenue 53.0 48.8 9% - Sports margin +2.6pp to 8.0% - Bonus/GGR: 24.8% (PY: 24.1%) Eurobet.it net revenue 27.1 19.6 38% - Marketing/NGR: 31.0% (P
Slide 12: H1 FY16 Cashflow
H1 FY16 Cashflow H1 FY16 H1 FY15 Change • Unlevered free cashflow of £87.9m was £m £m £m £12.8m lower than the prior year primarily as a result of a £17.2m increase in EBITDA EBITDA - Coral Group 124.6 107.4 17.2 offset by a £26.8m reduction in working Working capital and exceptionals (5.8) 21.0 (26
Slide 13: Q&A
Q&A 12