# Entain strong foundations to move into its next phase of growth - Link: https://www.directorstalkinterviews.com/entain-strong-foundations-to-move-into-its-next-phase-of-growth/4121131828 - Published: 2023-11-02T07:19:56+00:00 - Author: Amilia Stone **[Entain plc](https://www.directorstalkinterviews.com/ftse-company/entain-plc/ent.l)**( LON:ENT), the global sports betting and gaming group, has reported trading for the period from 1 July to 30 September 2023 and provides an update on accelerating the Group’s operational strategy. **Q3 Highlights** ·    Total Group (including US) Net Gaming Revenue (“NGR”) up +7% (+10% cc^(2)) o   Group NGR (excluding US) up +7% (+9% cc^(2)), -5% proforma^(2,3) ·    Online NGR up +9% (+11%cc^(2)), -6% proforma^(2,3), in line with updated expectations ^(4) o   Excluding known regulatory impacts^(5), Online NGR up +17%cc^(2), flat proforma ^(2,3) o   2-3ppt impact from customer-friendly sports results in September o   Continued strong growth in active customers, +26% YoY (+10% proforma^(2,3)) ·    Robust performance in Retail^(6) with NGR up 4% (+4% cc^(2)), -4% proforma^( 2,3) ·    BetMGM continues to perform strongly with Q3 NGR of approximately $458m, up c.15% YoY o   18%^(7) market share in markets where it operates (excluding New York) in sports betting and online gaming o   Continued iGaming strength with 26%^(8) market share o   Successful start to the NFL season as Online sports-betting customers enjoy the benefits of significant investment enhancing the customer experience o   On track for FY2023 NGR at the upper end of $1.8-$2.0bn guidance and to be EBITDA positive in H2 2023^(9) ·    Continued leadership and progress delivered across our [Sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news) Charter **Accelerate Operational Strategy** Over the last three years Entain has undergone a significant strategic transformation, improving the quality of earnings, strengthening operations, and aligning structures to best position the Group to capitalise on future growth opportunities and deliver shareholder value. At a presentation today, management will outline key initiatives to accelerate the Group’s operational strategy, including: ·    Focused market portfolio, optimised for organic growth and ROI o   Prioritisation of high growth, high return markets, including US, Brazil CEE and New Zealand o   Drive profitable growth in core markets, including the UK, Australia, Italy, Germany and the Baltics o   Exit smaller non-core operations ·    Return to organic growth at least in line with our markets (c.7%^(10) CAGR) from 2025 ·    Drive US market share to 20%-25% through investment in product & pricing capabilities, customer acquisition and maximising the omnichannel opportunity ·    Delivery of Project Romer to support expansion of Online EBITDA margin to 28% by 2026^(11) and 30% by 2028^(11) o   Simplification of the organisation to improve operational leverage and drive cost efficiencies o   Gross cost savings of £100m (net cost savings £70m) by 2025 ·    Enhanced Governance: o   Plan to appoint four new non-executive directors, including Amanda Brown’s appointment from 8 November 2023 o   Creation of a capital allocation committee of non-executive directors **Guidance** ·    FY2023 Group EBITDA^(12) (pre TAB NZ accounting) guidance: o   Q3 performance tracked to EBITDA guidance of £1.00bn – £1.05bn^(12,13) as stated on 25 September 2023 o   During October, while volumes have been in line with expectations, continued customer friendly results^(14) have seen sports margins impact EBITDA by approximately £45m o   This does not impact our expectations beyond Q4 2023 ·    FY2024 o   Pro forma Online NGR growth expected to be low single digit, supported by return to growth during H2 2024 o   Online EBITDA margin^(11,15) expected to be 24%-25% ·    Detailed guidance available at: https://entaingroup.com/investor-relations/ results-centre > **Jette Nygaard-Andersen, Entain’s CEO, commented**: > “Entain has undergone a profound transformation over the last few years, and now > has strong foundations from which to move into its next phase of growth. We have > made significant investments in responsible gambling initiatives. While these > steps have impacted EBITDA, they are unquestionably the right thing to do to improve > our long-term prospects. > From here, we have a clear plan to focus our portfolio for organic growth, drive > our market share in the US, improve our operational leverage, and increase our > EBITDA margins. The wide range of initiatives that are underway will cement our > position as a customer-focused industry leader, enable us to achieve our strategic > ambitions, and deliver enhanced returns for all our stakeholders.” **Presentation** Entain will host a presentation and Q&A session at 12.00 noon today, Thursday 2^( nd) November 2023. Participants may join via the webcast through this link [Entain 2 Nov presentation](https://kvgo.com/IJLO/Entain_Q3_Trading_Update) or attend in person, having registered via the link [In-person registration](https://entain-q3-trading-update.virtualhub.events/) A replay, transcript and slides will be available on our website: [https://entaingroup.com/investor-relations/results-centre/](https://entaingroup.com/investor-relations/results-centre/) Upcoming dates: BetMGM Business Update: 4 December 2023 Entain Sustain: Week of 11 December 2023 Share on: