Entain Regulatory News (ENT)

For Release at 7.00am

13 October 2022

Entain plc

("Entain" or the "Group")

Performance in line with expectations

Customer focus underpins record levels of actives

Strong momentum into the NFL season for BetMGM

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

Q3 Highlights

· Group net gaming revenue ("NGR") up +2% (flat cc1)

· Online NGR +1% (-2% cc1) broadly in line with expectations and demonstrating positive underlying momentum

o NGR +4% (+1% cc1), excluding Netherlands (where there is a temporary enforced closure of operations due to licencing procedures)

o Record level of active customers in Q3, +6% YoY

o NGR 3-year CAGR of 11% cc1

· Retail NGR2 up 10% (+10% cc1) and continuing to deliver strong trading performance, with Q3 NGR2 +8% vs pre-Covid levels

· BetCity (Netherlands) and SuperSport (Croatia) transactions along with creation of Entain CEE expected to complete in Q4, supporting further growth and geographic diversity

· BetMGM continues to perform strongly with 25%3,4 market share where it operates (excluding New York and 23%3,4 including New York)

o Successful start to the NFL season with Q3 NGR of just over $400m3, up c.90% YoY, with same-state revenues up c.50% YoY

o Continued leadership in iGaming with 31%4 market share

o Online sports-betting market share progressing well with particular strength (25%5 share) in states where we were live on day one of market launch

o On track for FY22 NGR of over $1.3bn

o Continued strong financial performance reiterates our confidence in reaching sustainable positive EBITDA during 20236

· Continued leadership and progress delivered across our Sustainability Charter

o Awarded SBC's Global Socially Responsible Operator of Year for 2022

o Entain and BetMGM led US online operators' commitment to the first industry-led responsibility gaming standards

o 2022 Entain Sustain event to be held 19 October

Full Year Outlook

· Healthy momentum into the year end with Online expected to grow year on year in Q4 benefitting from:

o Easing of prior year comparators

§ Last material Covid related lockdowns annualise during October

§ Temporary enforced closure of Netherlands operations annualises from 1 October; expect to be licensed and operating by the end of 2022

o World Cup in Q4 this year, whilst Euros tournament took place in Q2 and Q3 2021

· FY2022 Group EBITDA7 expected to be in line with previous guidance of £925m - £975m, representing growth of 5-10% vs the prior year

Jette Nygaard-Andersen, Entain's CEO, commented:

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

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

In the US, BetMGM continues to be the clear leader in the iGaming market, and the successful start to the NFL season also highlights the strength of our growing US sports betting offer.

We have healthy momentum across the business and look forward to a strong finish to the year which includes the World Cup. Looking ahead, we remain vigilant of the economic backdrop. However, our diversified revenue base and robust business model enable us to remain confident in our ability to deliver on our growth and sustainability strategy."

Notes

(1) Growth on a constant currency basis calculated by translating 2022 and 2021 performances at 2022 exchange rates

(2) Retail operates in UK, Italy, Belgium, and Republic of Ireland. Retail numbers are quoted on a LFL basis. During Q3 2022, there were an average of 4,274 shops/outlets in the estate, compared to an average of 4,513 during Q3 2021

(3) BetMGM revenues comprise of sports betting (Online and Retail) and iGaming revenues

(4) Three month period to Aug 2022, in markets in which BetMGM operates, and excluding August for AZ, IL and SD as data yet to be reported

(5) Three month period to Aug 2022, in markets in which BetMGM was live on first day of state launch; CO, TN, MI, VA, WY, AZ, LA and excluding August for AZ as data yet to be reported

(6) Based on current assumption of future live markets

(7) Guidance on EBITDA is on a post IFRS 16 basis, as stated at Interim results on 11 August 2022

Enquiries:

Q3 Conference Call & Webcast

An analyst call will be held today, Thursday 13th October 2022 at 9:00am (BST).

Participants may join via webcast or by conference call dial in, approximately 10 minutes before the start of the call.

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

To participate in the Q&A, please also connect via the conference call dial in details.

UK +44 (0) 33 0551 0200

US + 1 866 966 5335

Access Code: Quote "Entain" when prompted by 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: 19 October 2022

Forward-looking statements

This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, results of our operations, financial condition, liquidity, prospects, 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 can cause results and developments to differ materially from those anticipated. Any such forward-looking statements reflect knowledge and information available at the date of preparation of this document. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), the Company undertakes no obligation to update or revise any such forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its directors accept no liability to third parties in respect of this document save as would arise under English law.

About Entain plc

Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns 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 owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.

The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK, operating in over 40 regulated or regulating territories. Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group's website: www.entaingroup.com

LEI: 213800GNI3K45LQR8L28