Earnings+More - Entain puts £585m aside for HMRC fine
Entain puts £585m aside for HMRC fineEntain’s Turkish hit, Penn’s ESPN Bet hopes, Wynn’s blowout, Fox happy with Super 6, Sportradar talks tennis +More.Good morning. On today’s agenda:
Until we never say goodbye then I will keep the sun for you. Entain overshadowedEntain’s first-half figures are overshadowed by news of a £585m provision against a settlement with HMRC. Legacy issues: Entain’s earnings were dominated by the news of a £585m provision related to its ongoing deferred prosecution agreement (DPA) negotiations with HMRC over its legacy business in Turkey.
You’re still thinking about the bad news: Group NGR was up 14% YoY to £2.4bn and underlying EBITDA rose 6% to £499m in the first six months of the year, with FY23 EBITDA expected to come in at £1bn-£1.05bn. Group EBITDA was up 6% to £499m.
ESPN who? On the potential for new competition in the US, CEO Jette Nygaard-Andersen said the market is “becoming more and more consolidated” and is “more and more difficult” to build market share.
Look busy: The company had had a busy first half or more, buying Polish market leader STS for £750m as well as 365Scores for $160m and most recently sports-betting odds provider Angstrom for up to £202m.
** SPONSOR’S MESSAGE ** BettingJobs is the global leading recruitment solutions provider to the iGaming, Sports Betting and Lotteries sectors. Boasting a 20-year track record supporting the iGaming industry, and with a team of experts and world class knowledge, it’s no surprise BettingJobs is experiencing rapid growth with outstanding results. Does your company have plans to expand teams to cope with strong growth and demand? Contact BettingJobs.com today where their dedicated team members will help you find exactly what you are looking for. Penn aims highPenn CEO says the deal with ESPN is “not a typical media sportsbook commercial agreement”. Mr 20%: CEO Jay Snowden said the ESPN partnership announced on Wednesday would “redefine the sports-betting landscape” as the partnership aimed “for the top” with a long-term OSB target of 20% market share.
Despite the $150m a year for 10 years pledged marketing spend and the $500m of Penn share warrants gifted to ESPN, he claimed this was “not a bet-the-company” transaction.
Take it to the limit: He noted that the new online commitment would push Penn’s leverage to 4.7x-5x EBITDA over the next few quarters. The agreement includes a three-year opt-out clause should the market share targets not be reached.
Everything but the earnings: Snowden said Q2 had been ”stable” with revenues up 3% to $1.67bn, but adj. EBITDA was down 5.5% to $477m. Interactive revenues were up 66% to $258m, with EBITDA losses dropping 38% to $13m caused by the relaunch of the Barstool app on its proprietary platform. Wynn flying highWynn Resorts is firing on all cylinders. Kerching: “Well, what a quarter,” said CEO Craig Billings. “We saw strength all over the place: the casino, the hotel, the restaurants, retail, you name it, all supported by a consumer that seems more than willing to continue spending on unique luxury experiences.”
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Visit geocomply.com. Fox talesLachlan Murdoch says Fox is pleased with the outcome of the Fox Bet divorce and sees opportunities in working with other operators. I'm free to do what I want, any old time: Noting that the Fox Bet joint venture, which was nixed at the end of July, was “entirely funded by Flutter”, CEO Lachlan Murdoch said his company had “derived significant value” from the deal.
Still got it: Murdoch noted Fox still has the right to acquire 18.6% of FanDuel. “Some people have put that value of our option in FanDuel at up to $2bn,” he added, glossing over the gambling licensing hoops Fox would need to jump through to become an owner of that large a stake. On the radarNew rights to ATP and Latin American soccer are the highlights for Sportradar’s Q2. By the numbers: CEO Carsten Koerl noted at one point during the call with analysts that Sportradar is now working with 900 betting operators globally, along with 350 sports bodies and 500 media companies.
New balls please: On top of the LatAm soccer rights, Sportradar also signed a deal for ATP tennis over the period, which Koerl described as a “game changer”. “Next year when this starts, we want to launch multiple new products driven by deep data,” he added.
Earnings in briefInspired Entertainment: Revenues were up 13% YoY to $80m while adj. EBITDA was flat at $26m, which the group said included the impact of equipment sales and expenses shifting ~$2m of adj. EBITDA to the second half of the year. NeoGames: Revenues came in at $62m, double last year, reflecting the benefit from the acquisition of Aspire Global. Lottery revenues rose 7.9% to $14m, while the share in NeoPollard Interactive was also $14m, up 38% YoY. Everi: Gaming segment Q2 revenues rose 1% YoY to $113m, with a 5% rise in gaming operations largely offset by an 8% decline in gaming equipment and systems sales. The fintech segment grew by 13% to $96m, meaning total revenue was up 6% to $209m. ** SPONSOR’S MESSAGE ** What would you do with $100k in cash? Are you game…? NewslinesLight & Wonder followed up its earnings yesterday with a $550m bond issue dated 2031 in order to redeem the same dollar amount of notes due in 2025. Media and affiliate Playmaker has acquired Quebec-based sports media outlet La Poche Bleue for C$8.8m. Hacksaw Gaming has signed a distribution deal with Rush Street Interactive for the supplier’s debut in the US. Stats Perform has agreed an extension of its exclusive rights deal with Football DataCo, which manages data for the English Premier League and other major British sports leagues. Its Opta brand will continue to collect extensive data from all major English and Scottish soccer leagues under terms of the deal, which runs through the 2024 and 2025 seasons. Calendar
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Gambling’s big news week
Monday, August 14, 2023
Entain call recall, Penn analyst takes, Flutter share price watch, GAN gets nibbles +More
Wynn calls online retreat
Monday, August 14, 2023
WynnBet downsized, 888 leads the week ahead, Portnoy shares exit, startup focus – Inside The Pocket's survivor game +More
All eyes on Flutter
Monday, August 7, 2023
The week ahead, DraftKings' call reaction, analyst takes on Bally's, Red Rock and AGS, startup focus – Rithmm +More
DraftKings turns a profit
Friday, August 4, 2023
Debut profit at DraftKings, Bally's relaunch hopes, Red Rock, AGS, Accel and FL earnings in brief +More
Hornbuckle: ‘We can grab share back’
Thursday, August 3, 2023
MGM's defense, Rush Street pushes on, 888Africa M&A, Caesars analyst takes +More
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