ENTAIN PLC Annual Report 2023
Transforming our
game
1 | Overview | 8 | Strategic report | 88 | Governance | 140 | Financial statements |
01 | Introduction | 08 | Chairman's introduction | 88 | Chairman's Governance | 141 | Independent Auditor's |
02 | We are Entain | 12 | Chief Executive's Review | Overview | Report | ||
06 | Investment proposition | 18 | The industry in which | 89 | Board of Directors | 160 | Consolidated income |
we operate | 92 | Governance framework | statement | ||||
20 | How we create value | 98 | Board Activities during | 161 | Consolidated statement of | ||
23 | Our strategic framework | 2023 | comprehensive income | ||||
38 | Regulatory update | 101 | People & Governance | 162 | Consolidated balance | ||
40 | Sustainability | Committee Report | sheet | ||||
42 | ESG Governance | 104 | Audit Committee Report | 163 | Consolidated statement of | ||
44 | Safer betting and gaming | 110 | Sustainability & | changes in equity | |||
46 | Secure and trusted | Compliance Committee | 164 | Consolidated statement of | |||
platform | Report | cash flows | |||||
48 | Working environment | 113 | Directors' Remuneration | 165 | Notes to the consolidated | ||
50 | Positively impact our | Report | financial statements | ||||
communities | 138 | Directors' Report | 215 | Company income | |||
53 | ESG KPIs | statement | |||||
56 | TCFD Statement | 216 | Company balance sheet | ||||
64 | Engaging with | 217 | Company statement of | ||||
stakeholders | changes in equity | ||||||
68 | Chief Financial Officer's | 218 | Notes to the Company | ||||
Review | financial statements | ||||||
79 | ERM and Principal Risks | 223 | Glossary | ||||
87 | Viability Statement | 224 | Shareholder information | ||||
225 | Corporate information |
Strategic and operational highlights
Financial highlights
Refreshed corporate strategy, focusing on three strategic objectives (Drive Organic Growth; Expand online margins; Empower growth in US) to deliver value for our shareholders as the next phase of our transformation
Further expansion into regulated markets with leading market positions; expansion into Poland with acquisition of STS Holdings and partnership with TAB NZ providing unique access to New Zealand sports betting market
Group Revenue
£4.8bn
+11% 2022: £4.3bn
BetMGM Net Gaming Revenue1
$2.0bn
+36% 2022: $1.4bn
Online Net Gaming Revenue
£3.4bn
+12% 2022: £3.1bn
Group Underlying EBITDA2
£1,008m
+1% 2022: £993.0m
Enhancement of in-house content and capabilities with acquisition of 365Scores and Angstrom Sports
Strong performance of BetMGM boosted by product and tech enhancements including Single Account Single Wallet in 27 markets
Only global operator with 100% revenue from regulated or regulating markets
Launch of new sustainability strategy including an updated regulatory and safer gaming charter
Loss after Tax from Continuing Adjusted Net Debt Operations
£879m
2022: profit of £33m
Profit after Tax from
Continuing Operations before
Separately Disclosed Items
£339m
2022: £224m
- Represents NGR from 100% of BetMGM.
- Underlying EBITDA is earnings before interest, tax, depreciation and amortisation, share based payments and share of JV income. EBITDA is stated pre-separately disclosed items.
Entain plc Annual Report 2023
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements |
At Entain, we're on a mission to provide our customers around the world with the most entertaining experiences, supported by market leading player protection across betting & gaming.
Entain plc Annual Report 2023 | 01 |
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements |
We are Entain
Betting and gaming is in our DNA. It's the purple thread that drives our evolution, our people, and our purpose. We're the brands our players hold in their hands - and heart.
We only operate in regulated or regulating | through our global scale and household | |
betting and gaming markets, which means | names, we're focused on leveraging our | |
we're focused on delivering a secure and | skills, talent and capabilities to elevate | |
trusted betting and gaming business for | our technology and data insights to create | |
our stakeholders. Now, we operate in over | products and experiences like no other. | |
30 markets, with leadership positions in | ||
the five largest regulated markets and | ||
two fastest growing - US and Brazil. And, | ||
Entain, today.
Global & | Leading |
Diversified | Responsible |
portfolio | Operator |
Leadership | High Quality |
positions | Revenue & |
Growth | |
Largest | |
sports betting | Customer |
& gaming | Focused |
platform |
130+ | 40 | 33 | 42 |
130 licences across | Territories | Languages | Currencies |
>40 territories | worldwide | offered | accepted |
Our values
This year, we powered up our people with a new set of values and behaviours. These new values form the cornerstones of our culture, unlock the highest performance of our teams and lay the foundations for creating incredible experiences for our customers.
Our new values mean we're all looking towards the same future. At Entain, we:
Do What's Right
We put our customers first and play a leading part in protecting our players. We are creating a work environment where everyone can be themselves, and act with integrity all the time. To do what's right we must keep ourselves honest so our people should never be afraid to speak out if something feels wrong.
Keep it Simple
We make things easy for our customers by focusing on them and their needs. We're clear on our goals and who's accountable for what, so we all know what success looks like. We remove complexity wherever we find it, because we all perform better that way.
Go Beyond
We stay curious. We need to learn from our successes AND from setbacks to push forward. We surround ourselves with the best people and we put in the effort needed to turn ambitions into reality. We embrace change because that's when progress happens.
Win Together
We have a shared vision for Entain. We collaborate, break down barriers and share ideas for the greater good. We never forget that we're on the same side, so we treat everyone the way we want to be treated. We're inspired by our teammates. We celebrate their success, because when they win, we all win together.
02 Entain plc Annual Report 2023
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements |
We are Entain |
Our divisions
2023 NGR Split
Online | 71% |
Retail | 29% |
Other | - |
Online sports wagers
£13.7bn
-3% 2022: £14.1bn
2023 Underlying EBITDA Split1
Online | 75% |
Retail | 25% |
Other | - |
Retail sports wagers
£4.3bn
+12% 2022: £3.9bn
1. New opportunities and Corporate are excluded as they are negative.
Our commitment to the game
Our commitment to sustainability
This year, we introduced our new Sustainability strategy. A strategy that makes a real positive impact in the communities in which we work and play, one that builds trust with wider society, and ensures we are a leader in player protection.
We're continuously building on insights and have refreshed our strategy across four pillars that encapsulat the sustainability issues that are most important to Entain, our customers, investors and partners:
Be a leader in player protection: Player safety is a fundamental building block of our business and we are proud to play a leading role across our markets.
Provide a secure and trusted platform: We lead on integrity in everything that we do. From having the highest ethical standards, to only operating in regulated or regulating markets, to having an aim of gold standard data protection, and cybersecurity.
Create the environment for everyone
to do their best work: We attract a broad and diverse audience from the
Our leading brands
30+
Leading brands
inside out.
Positively impact our communities: We play our role in limiting global warming to no more than 1.5°C and we create a positive impact on our communities.
Read more about our sustainability strategy and commitments in 2023 here.
Our commitment to the customer
- Customers are the focus of everything we do.
- Our purpose is to provide them with the most entertaining customer experience supported by market- leading player protection.
- We will offer them exciting and trusted sports betting and gaming products and services.
- Listen to and respond to customer needs.
- Using our technology platform, we will continuously innovate to introduce new products and create a personalised and localised experience for each of our customers.
Entain plc Annual Report 2023 | 03 |
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements |
Our timeline of transformation
Growth through transformative acquisitions Business alignment to 100% regulated markets
July 2018 - Created BetMGM, 50/50
Joint Venture with MGM Resort
December 2020
- GVC Holdings renamed Entain plc
February 2016 - GVC acquisition of bwin.party
March 2018 - GVC and Ladbrokes Coral Group completed, creating one of the largest listed online gaming businesses in the world
2016 | 2017 | 2018 | 2019 | 2020 | |||||||
Corporate activity | Leadership changes | ||||||||||
-February - GVC admitted | - February - Barry | ||||||||||
to LSE Main Market | Gibson appointed |
Group's Non- executive Chairman.
- July - Shay Segev appointed as
CEO, succeeding Kenneth Alexander.
Corporate activity
- November - new corporate strategy announced - project
Sunrise re 100% regulated markets)
04 Entain plc Annual Report 2023
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements | |||||
Evolved strategy
August 2022 - formation of Entain CEE (venture with EMMA Capital, to create a strategic platform across CEE)
December 2023 - secured DPA to conclude HMRC investigation into legacy business
November 2023 - new evolved
3-year plan: organic growth, margin expansion and US market share.
2021 | 2022 | 2023 | |||||||
Leadership changes | M&A activity | Leadership changes | |||||||
- January - | - January - acquisition of | - December - Jette Nygaard-Andersen resigns | |||||||
Jette Nygaard- | Klondaika (Latvia) | as CEO. Stella David becomes Interim CEO | |||||||
Andersen appointed | - February - acquisition | M&A activity | |||||||
as CEO | |||||||||
of Avid Gaming/Sports | |||||||||
M&A activity | Interaction (Canada) | - January - acquisition of BetCity (Netherlands) | |||||||
- March - acquired | - March - announced partnership with TAB NZ | ||||||||
- March - acquisition of | |||||||||
Totolotek (Poland) | |||||||||
Enlabs (Baltics) | - June - announced 365 Scores acquisition | ||||||||
- November - acquisition | |||||||||
- March - acquisition of | - August - completed acquisition of STS | ||||||||
of SuperSport (Croatia) | |||||||||
Bet. pt (Portugal) | - October - completed acquisition of Angstrom Sports | ||||||||
- July - acquired | |||||||||
Corporate activity | |||||||||
remaining 49% |
of Crystalbet | - January - accelerated exits from unregulated market |
- September - acquisition | |
- June - equity raise | |
of unikrn (esports and | |
skill- based wagering) |
Entain plc Annual Report 2023 | 05 |
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements |
Investment proposition
Entain is a leading consumer-focused business operating in the global betting and gaming industry which enjoys attractive dynamics and structural market growth.
Our strong local brands supported by in-house technology and operational capabilities, enable leading positions in regulated markets.
Execution of our focused strategic objectives of organic growth, margin expansion and US market share, will deliver sustainable long term value for our stakeholders.
Operates in large and growing markets
Attractive global industry dynamics
Structural market drivers
High-single-digit % growth across our markets
Read more: pages 18-19
Diversified regulated operator
Portfolio optimised for growth and ROI
100% regulated or regulating markets
Diversified by geography, product & customer
Strong brands underpin leading market positions
Read more: page 26-37
06 Entain plc Annual Report 2023
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements |
Investment proposition |
Entain is a differentiated customer-focused business operating in a global industry with attractive growth dynamics. We are the most diversified, leader of scale in our sector, with superior growth embedded across our business, delivering profitable and sustainable returns for our stakeholders.
Focused execution of strategic targets
Execution plan
Increased localisation driving engagement & retention
Disciplined capital allocation
A leader in player protection
Read more: pages 23-25
Superior financial returns
Target revenue growth ahead of our markets
Operational leverage supports margin expansion
Strong operating cash flow & balance sheet
Progressive dividend policy
Read more: pages 68-77
Online NGR | Dividend |
+12%(CC) +17.8p
2022: 17p
BetMGM NGR
+36%
Entain plc Annual Report 2023 | 07 |
1 | Overview | 8 | Strategic report | 88 Governance | 140 Financial statements |
Chairman's introduction
J M Barry Gibson
Chairman
08 Entain plc Annual Report 2023
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Entain plc published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 07:29:04 UTC.
