Entain (ENT) Status update summary

Financial performance and guidance

• Q1 net revenue reached $696 million, up 6% year-on-year, with adjusted EBITDA of $25 million, an 11% increase year-over-year, slightly below expectations due to player-friendly sports results and competitive pressures.

• iGaming net revenue was $481 million in Q1, up 9% year-on-year, with contribution of $143 million; online sports net revenue was $203 million, up 4%, but contribution was $10 million due to unfavorable sports results and higher CPAs.

• Retail sports revenue declined 43% year-on-year to $11 million, mainly due to large VIP payouts.

• Average monthly actives declined 9% year-over-year, reflecting disciplined acquisition and player management.

• Q1 total contribution was $116 million, CapEx was $3 million, and parent fees paid were $3 million, with the first parent fee payment accrued in Q1.

Strategic focus and operational updates

• Increased focus and capital are being allocated to multi-product states, Nevada, and higher-value premium mass players.

• Marketing spend is being reduced in less efficient OSB-only states, with resources reallocated to areas with better paybacks.

• Exclusive content partnerships and cross-sell initiatives, such as Gold Blitz and Survivor, are driving iGaming engagement and differentiation.

• Player management strategies are leading to higher NGR per active and handle per active, despite a reduction in total actives; iGaming NGR per active up 12%, online sports handle per active up 23%, and NGR per active up 25% year-over-year.

• Alberta launch is scheduled for July, and a refreshed Borgata brand is planned to target new demographics.

Competitive environment and market dynamics

• Competitive intensity has increased, especially from new prediction market entrants, driving up CPAs and extending payback periods.

• iGaming competition is evolving, with new entrants in some states, but no major disruption to the core strategy.

• Premium player segments remain resilient, while lower-tier players are more affected by prediction market marketing and internal player management changes.

• The current high-spend environment from prediction markets is viewed as unsustainable, with expectations for normalization over time.

• Podium position maintained with 13% GGR market share in active markets, including 20% in iGaming and 7% in online sports.