Entain Share Price Fell 9.66% on the Full-Year 2023 Fiscal Results

The Entain PLC (LON: ENT) share price fell 9.66% after the company released its financial results for the 2023 financial year ended 31 December 2023. The company reported that its group Net Gaming Revenue (NGR), including BetMGM's 50% contribution, witnessed a 14% increase, with a 2% increase on a proforma basis.

The leading player in the global sports betting and gaming industry revealed that excluding the U.S. market, the Group's NGR saw an 11% rise, though experiencing a 2% decrease on a proforma basis.

Online NGR grew by 12% despite a 3% decrease on a proforma basis. Adjusting for regulatory changes, the underlying proforma online NGR saw a 3% increase. The year marked a historic high in online active customers, showing a 23% increase year-over-year and a 10% increase on a proforma basis.

Retail NGR improved by 9%, reflecting positive contributions from acquired stores in New Zealand and Poland, alongside the sustained performance of existing retail outlets. 

BetMGM had an impressive year, generating $1.96 billion in NGR, a 36% increase from the previous year. It also captured a 14% market share in its operational markets and reached EBITDA positivity in the second half of 2023.

Strategic growth through acquisitions such as STS Holdings in Poland and a 25-year partnership with TAB NZ in New Zealand bolstered Entain's presence in regulated markets. The company enhanced its in-house content and capabilities by acquiring 365Scores and Angstrom Sports.

A Deferred Prosecution Agreement (DPA) settled the HMRC investigation related to Entain's past Turkish operations sold in 2017. The company also announced refined strategic focuses aimed at organic growth acceleration, online margin expansion, and increasing market share in the U.S.

Group EBITDA rose by 1% to £1,008 million, with pre-TAB NZ accounting EBITDA close to forecasts at £974 million, a slight decrease from the previous year. Before separately disclosed items, the Group's profit after tax stood at £339 million.

A total loss of £879 million after tax was recorded due to the DPA settlement and impairment charges, primarily in the Australian segment. The adjusted diluted EPS was reported at 44.2p. A second Interim Dividend of £56.5 million (8.9p per share) has been announced, making the total dividend for the year £113 million (17.8p per share).

The balance sheet remains strong with an adjusted net debt of £3,291 million and a leverage ratio of 3.3x (3.1x on a proforma basis).

Entain share price. 

The Entain share price fell 9.66% to trade at 747.9p from Wednesday’s closing price of 827.9p.