Q3 2024 Entain PLC Trading Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ed Young - Morgan Stanley & Co. International Plc - Analyst : Good morning. I've got three questions, if that's okay. The first is for -- Gavin, congratulations. This feels like this is a business where the course has been set by your predecessor who is now Chair and is showing organic growth and is currently performing in the UK and Brazil, which are the first two sort of big areas of focus. And it sounds from your commentary there that you think the strategy is right. So how much of your focus is internally on the online and retail businesses ex-US? And how much of it is towards the US? And if you could, perhaps, comment at this stage, what's the biggest single thing do you think, if anything, that needs to change? The second question is on Crystalbet Georgia, which I -- sorry. Should I go one at a time, or is it (multiple speakers) --? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 17, 2024 / 8:00AM, ENT.L - Q3 2024 Entain PLC Trading Statement Call

Question: Ed Young - Morgan Stanley & Co. International Plc - Analyst : Sure. Okay. Second one, Crystalbet Georgia, I guess, it's back to being core again. Was there any change in your attitude towards price or the impetus to sell that business? Or was there any change in demand given the political context there or any other factors? And are you open-minded about the sale of other assets, providing the valuation was correct? And then finally, do you have any view on UK market growth in the quarter and where you sit versus the competition? I'd just note that Rank had very strong UK numbers this morning. So I was wondering if your bingo and soft gaming brands were outperformers within your mix. Thanks.

Question: Ed Young - Morgan Stanley & Co. International Plc - Analyst : Okay, thank you.

Question: Monique Pollard - Citi - Analyst : Hi, good morning, everyone. Three questions from me as well, if I can. The first question is just about the sports margins in the quarter. Obviously, the online sports margins were a benefit, up 40 basis points. But the retail were down 50 basis points, particularly weaker in international CEE. Just trying to understand the difference in the dynamics between the sports margins online and retail, why that is. Is it mix effect and the sort of weighting of -- I don't know -- for instance, in the UK racing versus footfall retail, online, or something else going on there in terms of the margins? The second question is, obviously, Nevada, the single-app, single-wallet. As you say, it's very early days, so not expecting anything concrete. But I just wondered if you could give us a sense of the potential upside from this, so whether it's number of customers that you have going (technical difficulty) and then going back who aren't signed up yet or any sort of sense of scale of the opportunity from that Nevada single-app, single-wallet would be super useful for some context. And then Brazil, obviously, another quarter now of 48% constant currency growth. I understand the point that the comps get harder as we go into 2025, and you've got the regulatory overhang. But just -- if you could call out some wins that you've had in that market this quarter and last quarter, in particular, would be great.

Question: Monique Pollard - Citi - Analyst : Great. And just coming back to Nevada then, one follow-up. Obviously, the main other operator that could look to do this sort of single-app, single-wallet would be Caesars. Do you see them coming with something like this relatively soon? Or do you think you've got a decent period of

Question: Monique Pollard - Citi - Analyst : Got it, thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 17, 2024 / 8:00AM, ENT.L - Q3 2024 Entain PLC Trading Statement Call

Question: Estelle Weingrod - JPMorgan - Analyst : Hi, everyone. I just have three questions as well, please. I mean, I've got the first one on Australia, which contributed nicely to your good performance this quarter. Could you provide more color on this one? We'd like to understand a bit better the key underlying drivers. Also one on Brazil again, does it make sense for us to assume further investment there as it legalizes in January and as some of -- some more competitors might decide to accelerate investment in player acquisition? And just a last one on the UK, I mean, I know, Rob, you mentioned it's difficult to strip out all the comps there. Any way you can help us understanding the impact from the lapping of prior-year regulatory implementations? Just want to understand a bit better what the underlying performance is. And also how long are these -- is the comps related to that lapping going for -- I guess, up until Q2 (technical difficulty) yeah, Q2 next year. Thank you.

Question: Estelle Weingrod - JPMorgan - Analyst : Okay, thank you very much.

Question: David Brohan - Goodbody Stockbrokers - Analyst : Morning, guys. Three questions from me. Firstly, would you be able to provide the STS NGR growth number? I think, Rob, you said it was negative. But just if you could provide that number, it would be really helpful. And then two questions on BetMGM. Firstly, could you give any color on the drivers of growth between OSB and iGaming? And you've adjusted kind of at very high-level terms. And then secondly, any color on how promotional intensity has developed over the three quarters year to date, given the trajectory of NGR growth over the year? Thank you.

Question: David Brohan - Goodbody Stockbrokers - Analyst : Perfect. That's really helpful. Thanks, Rob.

Question: Joe Thomas - HSBC Bank Plc - Analyst : Hi. Good morning, Gavin. Good morning, Rob. Yeah, (technical difficulty) my questions, please. First thing, just on retail, down 2% despite the new covenants being rolled out. I think you said, Rob, that it's getting -- I think you said it's getting better. Can you just sort of give us an idea about what the exit rate is and what you'd be expecting on the retail outlook? Secondly, US market share. You were sort of quite keen to downplay that as being -- the improvement as being a result of seasonality. Just wondering if you can give us any anecdotes on the early part of the NFL season and what's your expectations are generally on market share. I know that you're spending more on marketing and have improved the product mix. (technical difficulty) back on Australia. Are there any different trends in sports versus racing? I think you've called them out in past, and it would just be quite helpful to know. Thank you very much.

Question: Joe Thomas - HSBC Bank Plc - Analyst : Thanks a lot.

Question: Jack Cummings - Berenberg, Gossler & Co. - Analyst : Morning, Rob. Morning, Gavin. Two questions, please. Rob, I think you mentioned parlay mix was up by one or two points. But could you maybe just add a little bit of color as to how Angstrom is driving the hold rates since the product have been rolled out? And then secondly, just on the Netherlands, I think it was down 13% in half one. Was that back in growth in Q3? And how do you think about the Netherlands going forward? Is it still a core market for you? Thanks.

Question: Jack Cummings - Berenberg, Gossler & Co. - Analyst : Perfect. Thank you.

Question: Ben Shelley - UBS - Analyst : Thank you. Well, good morning and congratulations on the new gig, Gavin. Three questions from me, if I may. One, how do you view BetMGM profitability into next year? And what will you prioritize between top line and bottom line? Two, in your Q3 deck last year, you spoke to medium-term 7% growth rate in online. Is this what your medium-term online margin guidance is anchored to? And three, could you talk a bit about consolidation in the Italian market? Would you view yourselves more of a seller or a natural buyer of assets in this country? Thank you.

Question: Ben Shelley - UBS - Analyst : Thank you, team.

Question: Simon Davies - Deutsche Bank AG London - Analyst : Good morning. Just one last for me. On Brazil, there seems to be a lot more negative rhetoric coming out of -- from politicians. And (inaudible) there's a commission investigating potential financial impacts from the proposed betting regime. Do you have any concerns that there are going to be any delays in terms of the introduction of regulation or, indeed, that it could get torpedoed politically?

Question: Simon Davies - Deutsche Bank AG London - Analyst : Great, thank you.

Question: James Rowland Clark - Barclays Capital - Analyst : Hi. Good morning, all. Two questions, please, just on online. You mentioned that you think you're probably growing in line with the market at mid-single digits. But with iGaming, you're obviously outperforming the market and wagering at flat growth. Looks like it's probably underperforming. So I just wondered if you could just outline your confidence about whether the wagering business could return in line with the market and by when you think that can happen? And then secondly, just on sort of looking to next year, your UK and Brazil businesses have returned to faster -- an earlier growth than you expected in the second half. So you're carrying a bigger business into next year. Any comments you have about online profitability into 2025? Thank you.

Question: James Rowland Clark - Barclays Capital - Analyst : Yes, absolutely, UK. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 17, 2024 / 8:00AM, ENT.L - Q3 2024 Entain PLC Trading Statement Call

Question: James Rowland Clark - Barclays Capital - Analyst : Yeah, that's helpful. Thank you. And I get to my first question, it was really on the online sports betting business in the UK, about when you think it can grow back in line with the market.

Question: James Rowland Clark - Barclays Capital - Analyst : Thank you very much.