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Third Quarter Trading Update – Entain

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October 13, 2022

Entain plc
(“Entain” or the “Group”)

Performance as expected
Customer centricity underpins record levels of assets
Strong momentum in the NFL season for BetMGM

Entain plc (LSE: ENT), the global sports betting, gaming and interactive entertainment group, today reports trading for the period July 1 through September 30, 2022 (“Q3”).

Third Quarter Highlights

  • Group net revenue from games (“RNG”) up +2% (stable cc1)
  • NGR online +1% (-2% cc1) broadly in line with expectations and showing positive underlying momentum
  • NGR +4% (+1% cc1), excluding the Netherlands (where there is a temporary forced closure of operations due to permit procedures)
  • Record level of active customers in Q3, +6% YoY
  • NGR 3-year CAGR of 11% cc1
  • Retail NGR2 +10% (+10% cc1) and continues to show strong business performance, with Q3 NGR2 +8% compared to pre-Covid levels
  • The BetCity (Netherlands) and SuperSport (Croatia) transactions as well as the creation of Entain CEE are expected to be finalized in the fourth quarter, supporting continued growth and geographic diversity
  • BetMGM continues to perform well with 25%3.4 market share where it operates (excluding New York and 23%3.4 including New York)
  • Successful start to NFL season with third-quarter NGR just over $400 million3up about 90% YoY, with same-state revenue up about 50% YoY
  • Maintained leadership in iGaming with 31%4 market share
  • The market share of online sports betting is progressing well with particular vigor (25%5 share) in the states where we were live on the first day of market launch
  • On track for FY22 NGR of over $1.3 billion
  • Our continued strong financial performance reiterates our confidence in achieving a sustainably positive EBITDA in 20236
  • Continued leadership and progress on our sustainability charter
  • Awarded Global Socially Responsible Operator of the Year 2022 by SBC
  • Entain and BetMGM Led US Online Operators’ Commitment to First Industry-Led Accountability Gaming Standards
  • The Entain Sustain 2022 event will take place on October 19

Outlook for the full year

  • Good momentum at the end of the year with Online which should grow year-on-year in the fourth quarter thanks to:
  • Relaxation of prior year comparators
      • Latest Covid-related hardware lockdowns reverse in October
      • The temporary forced closure of operations in the Netherlands is canceled from October 1; expect to be licensed and operational by the end of 2022
  • World Cup in the fourth quarter this year, while the Euro tournament took place in the second and third quarters of 2021
  • Group EBITDA for the 2022 financial yearseven expected to be in line with previous guidance of £925-975m, a growth of 5-10% year-on-year

Jette Nygaard-Andersen, CEO of Entain, commented:

“Our business continues to perform well with good underlying momentum across the group, including at BetMGM. This illustrates the effectiveness of our growth strategy, the unique capabilities of the Entain platform and the underlying strength of our diverse global business.

I am delighted that we have welcomed even more customers to our brands around the world. This is a testament to our consistent customer focus, as well as the quality of our products, our content and our talented people.

In the US, BetMGM continues to be the undisputed market leader in iGaming, and the successful start to the NFL season also highlights the strength of our growing US sportsbook offering.

We have good momentum across the business and are looking forward to finishing the year which includes the World Cup strong. For the future, we remain vigilant regarding the economic context. However, our diversified revenue base and robust business model allow us to remain confident in our ability to deliver on our growth and sustainability strategy.

Q3: July 1 to September 30, 2022

Total

NGR

Total

DC NGR1

CAGR 3 years NGR total cc1

sport bets

cc sports betting1

Sporting margin

On line

Sports

1%

(4%)

12%

1%

(3%)

+0.1pp

Games

1%

(2%)

9%

Total online

1%

(2%)

11%

Detail2

ten%

ten%

3%

4%

4%

+1.3pp

Total group

2%

Apartment

seven%

Year-to-date: January 1 to September 30, 2022

Total

NGR

Total

DC NGR1

CAGR 3 years NGR total cc1

sport bets

cc sports betting1

Sporting margin

On line

Sports

(4%)

(5%)

15%

(1%)

(3%)

-0.1pp

Games

(6%)

(seven%)

ten%

Total online

(5%)

(6%)

12%

Detail2

102%

103%

1%

104%

104%

+0.6pp

Total group

12%

11%

6%

Remarks

  • Growth at constant exchange rates calculated by converting 2022 and 2021 performance at 2022 exchange rates
  • Retail operates in the UK, Italy, Belgium and the Republic of Ireland. Retail figures are shown on an LFL basis. During the third quarter of 2022, there were an average of 4,274 shops/points of sale in the area, compared to an average of 4,513 during the third quarter of 2021
  • BetMGM revenue includes sports betting (online and retail) and iGaming revenue
  • Three-month period to August 2022, in markets in which BetMGM operates, and excluding August for AZ, IL and SD, as data has not yet been released
  • Three-month period through August 2022, in markets where BetMGM was live on the first day of official launch; CO, TN, MI, VA, WY, AZ, LA and except August for AZ as data has not yet been released
  • Based on current assumption of future live markets
  • EBITDA indications are on a post-IFRS 16 basis, as shown in the August 11, 2022 interim results

Requests:

Q3 Conference Call and Webcast

A call for analysts will take place today, Thursday 13e October 2022 at 09:00 (BST).

Participants can join via webcast or conference call, approximately 10 minutes before the start of the call.

Live audio webcast link: https://kvgo.com/IJLO/Entain_3Q22_Trading_Update

To participate in Q&A, please also connect via conference call to enter details.

UK +44 (0) 33 0551 0200
USA + 1 866 966 5335
Access code: quote “Entain” when prompted by the operator

A replay of the presentation and transcript will be available on our website:
https://entaingroup.com/investor-relations/results-centre/

Upcoming dates:
Entain Sustain: October 19, 2022

Forward-looking statements
This document contains certain statements that are forward-looking statements. They appear in several places in this document and include statements concerning our current intentions, beliefs or expectations and those of our officers, directors and employees concerning, among other things, the results of our operations, our financial condition, our liquidity, our prospects, our 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 may cause results and developments to differ materially from those anticipated. These forward-looking statements reflect the knowledge and information available at the date of preparation of this document. Except in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure and Transparency Rules and the Prospectus Rules), the Company does not assumes no obligation to update or revise these forward-looking statements. Nothing herein should be construed as a profit forecast. The Company and its directors accept no liability to third parties in respect of this document except as required by English law.

About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the largest sports betting and gaming groups in the world, operating both online and in the retail sector. The Group has a comprehensive portfolio of established brands; Sports brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet and Sports Interaction; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group has proprietary technology in all of its major product verticals and, in addition to its B2C operations, provides services to a number of third-party clients on a B2B basis.

The Group has a 50/50 joint venture, BetMGM, the leader in sports betting and iGaming in the United States. Entain provides the technology and capabilities that power BetMGM as well as exclusive games and products, specially developed in its in-house game studios. The Group is tax resident in the UK and operates in over 40 regulated or regulated territories. Entain is an ESG leader, member of FTSE4Good, DJSI and is rated AA by MSCI. The Group has set a science-based goal, committing to be zero carbon by 2035 and, through the Entain Foundation, supports various initiatives, focusing on safer play, grassroots sport, the diversity of technologies and community projects. For more information, visit the Group’s website: www.entaingroup.com

LEI: 213800GNI3K45LQR8L28