RNS Number : 5502Z

Entain PLC

06 March 2025

6 March 2025

Entain plc

("Entain" or the "Group")

FY24 marked the Group's return to organic growth with results at top of guidance

Continuing momentum sees business well placed for 2025

Entain plc (LSE: ENT), the global sports betting and gaming group, today reports its results for the year ended
31 December 2024 ("FY24").

· Total Group Net Gaming Revenue ("NGR"), including 50% share of BetMGM, up +6%, +9%cc², +4%cc² proforma³

o FY24 Online NGR (exc. US) up +9%, +12%cc², +6%cc² proforma³ with improving momentum through the year

o Q4 Online NGR (exc. US) up +13%cc², stronger than expected, including benefit of operator friendly sports margins

· Accelerating growth in "must win" markets:

o UK&I Online NGR returned to growth sooner than expected in Q3, and in Q4 grew +21%cc² in line with market

o Brazil NGR grew +41%cc² YoY, rebuilding strongly from +9%cc² in Q1 to +65%cc² in Q4

o In the US, BetMGM's accelerating momentum and strategic refinement underpins our confidence in delivering positive EBITDA⁴ in 2025 and the pathway to $500m EBITDA⁴ in the coming years

· Margin expansion: Online EBITDA⁴ margin of 25.3%, ahead of expectations, benefiting from stronger than anticipated growth and operational efficiencies

· Group EBITDA⁴ of £1,089m, in line with upgraded⁵ guidance, +12%cc² YoY, +5%cc² proforma³

· Outlook: Year to date trading and ongoing operational execution supports our expectation to grow FY25 Online NGR in line with underlying markets

o Entain remains comfortable with market expectations⁶ for FY25

o Pathway to generating over £0.5bn of annual adjusted ⁷ cash flow in the medium term

Stella David, Interim CEO of Entain, commented:

"2024 has been a year of transformation for Entain. I am delighted to see that our strategic and operational improvements are translating into strong performance; clear evidence that our strategy is delivering. I want to thank all my colleagues for their tremendous hard work and resilience.

Entain has a high quality portfolio of iconic brands with podium positions in attractive markets. Our return to organic growth is the beginning of our rebuild journey; our momentum continues, and we have started the year strongly. I am incredibly proud of our achievements so far and look forward to our opportunities ahead."

FY24 Trading performance:

	Net Gaming Revenue (NGR)
	H1		H2		FY
	YoY Rpt¹³	YoY cc² Proforma³	YoY Rpt¹³	YoY cc² Proforma³	YoY Rpt¹	YoY cc² Proforma³

UK & Ireland	(6%)	(6%)	7%	7%	0%	0%

International	7%	3%	5%	9%	6%	6%

CEE⁵	126%	12%	27%	13%	62%	12%

Total Group (exc US)	6%	0%	7%	9%	7%	4%

Total Online	9%	1%	9%	11%	9%	6%
Total Retail	1%	(4%)	3%	3%	2%	flat

Total Group inc 50% of BetMGM	6%	0%	7%	8%	6%	4%

FY24 performance highlights

· Total Group NGR, including 50% share of BetMGM¹, up +6%, +9%cc², and +4%cc² on a proforma³ basis

o Group NGR (exc. US) up +7%, +9%cc², 4%cc² proforma³

o Online NGR (exc. US) up +9%, +12%cc², +6%cc² proforma³, with active customers up +10% proforma³

o Retail NGR (exc. US) up +2%, +3%cc², flat YoY proforma³, with strong Q4 driving growth in H2

· UK & Ireland NGR flat cc², reflects our accelerating recovery through the year with Q1 -7% to Q4 +13%

o UK&I Online +2%cc² with H2 growth of +14%cc² evidencing our customer journey simplification and improving player experiences

§ Actives customers grew +11% YoY

§ Spend per head returned to growth in Q4 across both sports and gaming, for the first time since Q1-2021

o UK&I Retail -1%cc² (+1%cc² LFL) with H2 up +2%cc² (+4% LFL) with the benefit from strong sports margins and the completion of our new Kascada cabinets rollout offsetting some softness in the Retail gaming market

· International NGR up +10%cc², +6%cc² on a proforma³ basis

o Brazil delivered excellent revenue growth, with FY24 NGR up +41%cc² and actives +42%

o Australia NGR grew +1%cc² YoY, despite softness in the underlying market

o Italy +3%cc² (Online +2%cc², Retail +4%cc²)

· Entain CEE⁵ continued to perform well with NGR up +12%cc² proforma³, with SuperSport in Croatia performing particularly strongly at +16%cc² YoY

· BetMGM delivered net revenue of $2.1 billion, up +7% YoY, with strengthened sports product and increased iGaming marketing investment driving acceleration in growth and player engagement metrics through the year

o Market share⁸ stabilisation at 14%, with iGaming (22%) and Online Sports (8%)

FY24 financial highlights

· Group EBITDA⁴ of £1,089m driven by proforma³ EBITDA growth of +5%cc² and the annualisation of 2023 acquisitions

o Online EBITDA⁴ £941m, +11%, Retail EBITDA⁴ £261m, -11%

· Group loss after tax of £461m, reflecting separately disclosed items charge of £876m which include impairments following known regulatory changes and heightened competitor activity in certain smaller markets

· Adjusted diluted EPS⁹ of 29.9p, (46.9p exc. US)

· Second interim dividend of c£60m (9.3p per share) proposed, bringing the total dividend for the year to £119m (18.6p per share)

· Robust balance sheet with adjusted¹⁰ net debt of £3,339m and available cash of over £1bn at 31 December 2024

· Project Romer efficiency programme on track with upgraded annual net savings target of £100m in 2026

FY24 summary: 1 January to 31 December 2024

Total Group (ex US)	Reported¹
	2024	2023	Change	CC²
Year ended 31 December	£m	£m	%	%
Net gaming revenue (NGR)	5,161.9	4,833.1	7%	9%
Revenue	5,089.2	4,769.6	7%	9%
Gross profit	3,118.1	2,907.0	7%
Underlying EBITDA⁴	1,088.8	1,007.9	8%
Underlying operating profit¹¹	616.6	641.8	(4%)
Underlying (loss)/profit before tax¹¹	518.4	444.9	16%
Profit after tax pre separately disclosed items	379.5	339.1
Loss after tax	(461.0)	(878.7)
Basic EPS (p)	(70.8)	(141.4)
Continuing adjusted diluted EPS⁹ (p)	29.9	44.2
Continuing adjusted diluted EPS excl US⁹ (p)	46.9	51.0
Dividend per share (p)	18.6	17.8

Q4 2024 Trading performance:

Q4 2024: 1 October to 31 December 2024

Total

NGR

Gaming

NGR

Sports

NGR

Sports

Wagers

Sports

Margin

Reported¹³

CC²

Proforma CC^2,3

UK & Ireland

+13%

+6%

+24%

+2%

+3.3pp

Online UK&I

+21%

+13%

+45%

+5%

+3.5pp

Retail UK&I

+5%

+6%

(4%)

+16%

(1%)

+3.2pp

International

+4%

+10%

+3%

+14%

+5%

+1.2pp

Online Int'l

+3%

+9%

+3%

+14%

+6%

+1.0pp

Retail Int'l

+8%

+12%

+2%

+14%

(1%)

+2.3pp

CEE

+12%

+14%

(3%)

+22%

+1%

+4.6pp

Online CEE

+11%

+14%

(2%)

+22%

+1%

+4.4pp

Retail CEE

+13%

+16%

(11%)

+21%

+1%

+5.4pp

Group (ex US)

+8%

+11%

+4%

+18%

+4%

+2.0pp

Online

+9%

+13%

+6%

+20%

+5%

+1.7pp

Retail

+6%

+8%

(4%)

+15%

(1%)

+3.0pp

BetMGM

(5%)

+0%

Total Group inc.

50% of BetMGM

+6%

+9%

Capital Allocation Committee

The Capital Allocation Committee remains committed to delivering shareholder value, continuing to monitor the Group's strategic progress alongside its significant capital commitments.

Dividend

In line with the Group's progressive dividend policy, the Board has proposed a total dividend for 2024 of c£119m, (18.6p per share), paid to shareholders in equal instalments with H1 and FY results. As such a second interim dividend of c£60m (9.3p per share), is expected to be paid on 25 April 2025 to shareholders on register on 14 March 2025.

Current trading

The Group has started the year strongly, with the momentum seen during 2024 continuing into 2025. Trading year to date reflects the benefit from operator friendly sports margins, and volumes in line with our expectations. In the US, BetMGM's accelerating performance has also continued into 2025 including record SuperBowl results.

Guidance

Entain has now passed through the most significant operational impacts of previous regulatory changes which created performance headwinds. As such, we expect mid-single-digit percent growth in Online NGR in 2025, in line with our weighted average for underlying markets.

Entain remains comfortable with market expectations ⁶ for FY2025. 2025 Online EBITDA margin is expected to be c25%, broadly flat year on year, with our increasing scale and operational efficiencies offsetting the impact of Brazil now operating in the newly regulated and locally taxed market from 1 January 2025.

Continued operational and strategic progress underpin our confidence in Entain's pathway to generating over £0.5bn of annual adjusted ⁷ cash flow in the medium term.

As previously announced¹², BetMGM expects FY25 to deliver revenue of $2.4-$2.5 billion and positive EBITDA.

Notes

(1) 2024 reported numbers are audited and relate to continuing operations

(2) Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2024 exchange rates

(3) Proforma references include all 2023 acquisitions as if they had been part of the Group since 1 January 2023

(4) EBITDA is defined as earnings before interest, tax, depreciation and amortisation, share based payments and share of JV income. EBITDA is stated pre-separately disclosed items

(5) As detailed in the 2024 Q3 Trading Update published on 17 October 2024

(6) Consensus EBITDA FY25 £1,109m as confirmed in 11 February 2025 statement

(7) Annual adjusted cash flow excludes working capital, dividends, acquisitions and associated financing

(8) Consolidated Gross Gaming Revenue (GGR) market share consists of last three months ending October, November, or December 2024 as latest reported for U.S. sports betting markets where BetMGM was active (online and retail), last three months ending December 2024 for U.S. iGaming markets where BetMGM was active, and last three months ending December 2024 for the Ontario market. Internal estimates used where operator-specific results are unavailable

(9) Adjusted for the impact of separately disclosed items, foreign exchange movements on financial indebtedness and losses/gains on derivative financial instruments (see note 9 in the interim financial statements)

(10) Adjusted net debt excludes the DPA settlement. Leverage also excludes any benefit from future BetMGM EBITDA or the payments due to acquire the minority interests in Entain CEE

(11) Stated pre separately disclosed items

(12) As detailed in the 2024 BetMGM FY Update published on 4 February 2025

(13) These results are unaudited

Enquiries

Investor Relations - Entain plc	investors@entaingroup.com

Media - Entain plc	media@entaingroup.com

Sodali & Co Rob Greening/Russ Lynch/Sam Austrums	Tel: +44 (0) 20 7250 1446 entain@sodali.com

Presentation and webcast

Entain will host our Full Year 2024 Results presentation and Q&A session today, Thursday 6^th March at 9:30am GMT, at Bank of America, 2 King Edward Street, City of London, London, EC1A 1HQ.

Analysts and investors are welcome to attend in person, having pre-registered via the in-person registration link. Alternatively please join the webcast approximately 15 minutes ahead of the event: online webcast link.

The presentation slides as well as a replay and transcript will be available on our website:

https://entaingroup.com/investor-relations/results-centre/

Upcoming dates:
Annual General Meeting	23 April 2025
Q1-25 Trading Update:	29 April 2025
2025 Interim results:	12 August 2025
Dividend Timetable
Announcement date:	6 March 2025
Ex-Dividend date:	13 March 2025
Record date:	14 March 2025
Payment date:	25 April 2025

Forward-looking statements

This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, Directors and employees concerning, amongst other things, results of our operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. These forward-looking statements include all matters that are not historical facts. By their nature, these statements involve risks and uncertainties since future events and circumstances can cause results and developments to differ materially from those anticipated. Any such forward-looking statements reflect knowledge and information available at the date of preparation of this document. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014) as it forms part of English law by virtue of the European Union (Withdrawal) Act 2018, the UK Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), the Company undertakes no obligation to update or revise any such forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its Directors accept no liability to third parties in respect of this document save as would arise under English law.

About Entain plc

Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.

The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK and is the only global operator to exclusively operate in domestically regulated or regulating markets operating in over 30 territories.

Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AAA rated by MSCI. For more information see the Group's website: www.entaingroup.com.

LEI: 213800GNI3K45LQR8L28

CHIEF EXECUTIVE OFFICER'S REVIEW

Entain is a leading player in sports betting and gaming, a global industry with attractive dynamics and structural growth. We are proud to be the most diversified leader of scale in our sector, operating over 35 iconic brands across more than 30 regulated or regulating markets. Our footprint of podium positions in attractive growth markets underpins the sustainable quality of our earnings. Entain is focused on providing our customers great player experiences with engaging products and content, underpinned by leading player protection.

To deliver value for our shareholders, we have a clear strategy to drive organic revenue growth, margin expansion and market share gains.

Having stepped in as Entain's Interim CEO in December 2023, I had the privilege of leading the Group through the first eight months of 2024. We have been laser focused on executing our strategic objectives and driving operational momentum to return the Group to structural growth. To achieve this, we needed to confront challenges head on, improve our ways of working, deliver on our product and technology roadmap, and prioritise execution in our must-win markets of the UK, Brazil and the US. We made significant progress on these fronts in 2024, establishing a solid foundation for sustainable growth, which continues into 2025.

In September 2024, Gavin Isaacs joined as CEO and the Board and I would like to thank him for his contribution during his tenure. He stepped down in February 2025 and I am pleased to return to the CEO role on an interim basis to continue driving the Group's strategy forward. Our objectives remain clear and aligned with our mission to create value for all shareholders.

I am very proud of the progress Entain achieved in 2024. Our return to growth for both organic NGR and EBITDA¹ is clear evidence that our operational transformation is succeeding. However, there is plenty of hard work still to do, delivering the brilliant basics that drive customer acquisition and retention, and enhance player experiences. Our rebuilding momentum continues and sees Entain well positioned for 2025. I am both confident and excited for the many opportunities ahead.

2024 performance

2024 was a year of inflection for Entain. The Group's performance improved as the year progressed and clearly illustrates the turnaround of the underlying business. We ended 2024 at the top of our guidance range, which we had upgraded twice during the year, reflecting the business' momentum and trading performance.

Total Group NGR including our 50% share of BetMGM was up +6% reported¹, +9%cc² and +4%cc² on a proforma³ basis. Excluding BetMGM, Group NGR was up +9%cc² and +4%cc² proforma³. The Group's Online and Retail operations delivered year on year growth in NGR of +12%cc² and +3%cc² respectively, +6%cc² and flat cc² on a proforma³ basis.

FY2024 Online Net Gaming Revenue YoY			FY2024 Retail Net Gaming Revenue YoY
	CC²	Proforma³ CC²		CC²	Proforma³ CC²
Group Online inc. 50% BetMGM	11%	6%	Total Retail	3%	flat
Online ex. 50% BetMGM	12%	6%	UK&I / LFL	(1%)/1%	-
UK&I	2%	-	International	7%	1%
International	-	7%	Italy	4%	-
Australia	1%	-	Belgium	(6%)	-
Italy	2%	-	Entain CEE	-	9%
Brazil	41%	-	Croatia	5%	-
New Zealand	-	4%	Poland	-	12%
Georgia	13%	-
Netherlands	-	(13%)
Germany	0%	-
Other	8%	-
Entain CEE	-	13%
Croatia	19%	-
Poland	-	8%

The Group's improving underlying organic growth as well as the benefit from stronger than expected sports win margins, particularly in the Euros tournament and the Premier League in Q4, delivered Group EBITDA¹ of £1,089m, up +12%cc² year on year, including proforma³ EBITDA growth of +5%cc².

Entain's acceleration in performance, from Group NGR growth of flat cc² in H1⁴ and +9%cc² in H2⁴ on a proforma³ basis evidences the progress achieved, giving us increasing confidence in 2025 and further ahead.

Although Entain has passed through the most significant operational impacts of previous regulatory changes, our global industry and its regulatory environment continues to evolve. Brazil's newly⁵ regulated sports betting and gaming regime and the Betting and Gaming Council's (BGC) new industry code⁶ were notable positive changes, whilst Belgium and the Netherlands face further regulatory tightening. The potential liberalisation of iGaming in Poland, as well as both online casino and the introduction of the legislative "net" in New Zealand also continues to be positive. However, recognising the impact from adverse regulatory changes, as well as heightened competitor activity in certain smaller markets, an impairment charge was recorded in 2024.

Separately in 2024, the Australian Transaction Reports and Analysis Centre (AUSTRAC) commenced civil penalty proceedings against the Group's subsidiary in Australia. Entain co-operated fully with AUSTRAC throughout its investigation, and we are hopeful of making progress towards a resolution with AUSTRAC through 2025.

Organic revenue growth

Critical to driving organic growth is player acquisition and retention, and our customers are central to our mindset as we continue to deliver our brilliant basics, enhance our offering, reinvigorate our acquisition channels, and improve our customer journeys and experiences end-to-end.

The UK and Brazil were highlighted as two of our "must win" markets, due to their significance within our Group portfolio and potential future growth opportunity. I am very proud that our teams' hard work has delivered successful 2024 results, with both these markets performing ahead of expectations.

UK & Ireland

Returning to growth in Entain's largest market was a cornerstone of the Group's overall performance and strategic success. The performance of our UK&I business in H1, with NGR down -6%cc² year on year, reflected the impact that our previous approach to regulatory implementation had on our customers' experience and engagement, particularly in Online.

The turnaround of our UK&I Online growth was critical to the Group's performance during 2024 and demonstrates the success of our decisive actions. UK&I Online NGR was up +2%cc² versus the prior year, and importantly returned to year on year growth sooner than anticipated. Q4 delivered NGR growth of +21%, recovering from down -8% in H1, and growing back in line with the market.

Addressing the complexity and friction of our customer journey's without compromising our player protection was an important component of our performance recovery. As evidenced during H1, the stabilisation in spend per head has now moved into growth on a year on year basis, across both sports and gaming in Q4.

Alongside our smoother customer journeys, we also delivered numerous initiatives to improve our UK offering and player experience across both sports and gaming. Our brands have continued to engage players with leading gaming content including an unrivalled library of in-house and exclusive games. As well as Foxy's engaging marketing campaigns, we are delighted with how our players are enjoying LadBucks and Coral Coins, our new coin economy loyalty programme and a differentiator to peers. Our Sportsbook enhancements prioritised key elements of players' experiences: UX, design and app speed. Our new in-house Bet Builder sports product launched in H2, aligned with the start of the Premier League football season, and further enhancements are expected during the year ahead.

The UK&I is an omni-channel market which brings many opportunities, particularly following our organisational restructuring which combined the management of UK&I Online and Retail. We are pleased with the performance of our UK&I retail estate as it digests some gaming market softness, as well as ongoing inflationary and cost challenges. UK&I Retail delivered +1%cc² LFL NGR growth versus 2023, underpinned by our digital in-shop experiences, strong sports win margins and next-generation Kascada cabinets which rolled out fully in H2.

International

Brazil is the fastest growing market outside of the US and it introduced a regulated sports betting and gaming regime from 1 January 2025. Having seen our business lose direction during 2022, 2024's excellent performance is testament to the decisive actions and hard work undertaken in overhauling our go-to market approach. Led by local management, initiatives included refreshing our brand, realigning customer acquisition channels, integrating smooth payment processing, as well as refining our product to embrace local favourites across both our gaming portfolio and sports offering.

The green shoots of returning growth emerged in early 2024 and accelerated strongly through the year. Our Brazil business delivered Online NGR growth of +41%cc² for the year, accelerating from +28%cc² in H1⁴ to +57% cc² in H2⁴.

The newly regulated sports betting and gaming regime brings significant changes to the Brazilian market for 2025. We believe we are well positioned in this attractive, albeit highly competitive, market. We are pleased with our performance so far in 2025, successfully launching on day one of the newly regulated regime as well as partnering as the main sponsor of Palmeiras football club, which is already generating excellent player engagement.

Australia, the largest Online market in our International division, performed well during 2024 despite the underlying market experiencing some expected softness. Having achieved H1⁴ NGR that was flat versus the prior year, including some benefit from strong sports margins, our Ladbrokes and Neds brands continue to differentiate themselves in this highly competitive market. NGR growth improved to +2%cc² in H2⁴, delivering NGR up +1%cc² for the year. We continue to focus on improving the quality of our player base with unique product and experiences, as well as expanding our offer to include additional overseas races, which resonate with our Australian customers.

Leveraging the strength of our Australia platform, our partnership with TAB NZ in New Zealand is making progress. The business was successfully migrated onto Entain Australia's technology during Q2 and Entain launched our new complementary online-only sister brand "betcha" in August. On a proforma basis, Online NGR was up +4%cc² and we are encouraged by accelerating momentum through the year, with actives growing 10% in 2024. More customers in New Zealand are enjoying an enhanced and engaging sports betting experience, and we look forward to this growing opportunity following the introduction of the legislative "net" for racing and sports betting expected in 2025, as well as the improving outlook for online casino regulation in the future.

Our business in Italy continues to operate in a competitive and consolidating market. Our 2024 performance of +3%cc² NGR growth, Online (+2%cc²) and Retail (+4%cc²), reflects both customer-friendly sports margins as well as the challenging competitive environment as peer operators maximise their consolidation-led growth strategies. The growth in the underlying Italian market remains strong and omni-channel operators continue to outperform as brand recognition and point-of-sale touchpoints remain particularly critical to driving online customer acquisition and engagement. Our Eurobet brand continues to leverage its omnichannel position, offering customers new sports markets and exclusive gaming products. Entain's multi-brand approach secures our top-tier position in this highly attractive market and we are well placed to benefit from the implementation of the revised online licensing expected during 2025.

Entain CEE

We continue to be pleased with our Entain CEE performance with NGR up +12%cc² YoY on a proforma basis, delivering +13%cc² and +9%cc² NGR growth for Online and Retail respectively.

In Croatia, SuperSport remains a market leader across both Online and Retail and continues to be a standout performer. Online NGR grew +19%cc² YoY whilst Retail NGR was up +5%cc², as players enjoy our strong brand and engaging product offering. In Poland, STS delivered proforma NGR growth of +8%cc² during 2024, with wagering up +12%cc, first time depositors (FTDs) +28% and actives +10% versus the prior year, and maintained our market leadership despite facing heightened competitive intensity ahead of the potential liberalisation of iGaming in the medium-term horizon.

Margin expansion

Supporting the Group's strategic growth transformation is our focus on aligning structures and simplifying our operating model, particularly across our product and technology footprint. Ensuring our business has strong foundations enables us to be more agile and execute more effectively to capitalise on growth opportunities. Our efficiency programme, Project Romer, is unlocking operational efficiencies as well as savings. Having completed the initial phase of initiatives, we saw potential for even greater efficiencies and increased our target of delivering net cost savings from £70m to at least £100m in 2026. As well as delivering efficiency savings, these initiatives also free up capital to reinvest back into product and player experience, supporting further growth, building scale and operational leverage to expand our EBITDA margin.

In 2024 we expanded our Online EBITDA margin to 25.3%, ahead of expectation of 24-25% due to scale benefits from stronger than anticipated revenue performance, particularly in our UK business. In 2025, Online EBITDA margins is expected to remain broadly flat year on year reflecting our increasing scale and operating efficiencies offsetting the impact of Brazil's new regulatory tax structure, and we remain confident of driving margin expansion in future years.

Empowering US growth

Expanding our market share is one of the Group's strategic goals, with stabilisation of BetMGM's share in the US an important part of our growth transformation.

BetMGM continues to be a leading operator in the world's largest gaming market, operating in 29 markets including 2024 launches in North Carolina and district wide in Washington D.C.

2024 was a year of investment and rebuilding of momentum for BetMGM. We strengthened the business by improving our product offering, enhancing player engagement, refining our customer acquisition and retention strategies, and unlocking unique omnichannel opportunities. Our improved offering and strategic refinement saw BetMGM stabilise market share, and exit the year with encouraging key metrics including Q4 EBITDA¹ trending towards breakeven on a normalised basis⁷.

Our leading iGaming business continues to grow strongly and deliver attractive returns. We increased our investment behind our brand and unique offering with the widest range of market leading games content, which drove an acceleration in 2024 NGR growth from +13% in Q1 to +25%⁷ in Q4. BetMGM's omnichannel advantage is a key differentiator with proprietary titles and record-breaking jackpots driving strong engagement. The strong momentum in our iGaming business and increasing potential for legalisation in new states, gives us ever-increasing confidence in BetMGM's profitable growth trajectory.

BetMGM made meaningful progress in Online Sports during 2024, seeing a stabilisation in our market share. In addition to numerous upgrades across our product offering, providing customers a smoother, faster, richer experience, the integration of Angstrom, Entain's US-sports focused pricing and data analytics capability, was critical to improving our parlay betting offering to include the broadest number of markets and unique pricing combinations. These improvements were notable during the NFL season, driving a year on year handle increase of +26% in Q3 and +38% in Q4.

Coupled with our increased investment in customer acquisition, during 2024 we progressively refined our strategy to amplify our premium brand, iGaming heritage and unique omnichannel advantages with tailored promotions and enhanced real-life experiences resonating well with customers and enhancing efficiency.

Further amplifying our unique omni-channel strengths, expanding our nationwide, single, digital wallet into Nevada, becoming the first sports betting app in the state to offer bettors a seamless experience when travelling to other regulated states. This remains a key differentiator given MGM Resorts' Las Vegas presence and the fact that BetMGM is the only podium operator with a mobile license in the state. The 2024/25 NFL season saw 61% growth in Nevada-acquired first-time depositors and doubled the percentage of those who continued to play with us after returning to their home state.

With BetMGM's renewed acceleration across both iGaming and Online Sports, we expect to achieve positive EBITDA in 2025, and our scaled podium position in the world's largest gaming market underpins our confidence in our pathway to $500 million EBITDA in the coming years.

Group strategy and priorities

Since becoming Entain in 2020, the Group has been transforming to become a stronger, leaner, and more sustainable business, only operating in regulated or regulating markets.

To deliver value to all our shareholders, Entain has clear strategic goals:

· Organic revenue growth - acquiring and retaining customers by ensuring a smooth, relevant and engaging experience for players

· Margin expansion - simplifying our operating model to be more agile and effective, driving greater returns through efficient use of capital

· Market share gains - outperforming our markets over the long term

We have made strong progress in the operational phase of our transformation, and the evidence of what we have achieved so far demonstrates that our strategy is working - rebuilding our growth momentum and returning our business to its winning ways. Following the successes in our "must win" markets, UK, Brazil and US, our execution focus has evolved, broadening across our footprint of podium positions in attractive markets to deliver further high quality growth and share gains.

The Group has made an excellent start, but there is still a lot of hard work to do to return Entain to its winning ways and deliver value for all our shareholders.

2024 sustainability highlights:

At Entain, sustainability is integral to our growth strategy and long-term success. Our Sustainability Charter is built on four core pillars that address the priorities of our customers, employees and stakeholders:

· Lead on player protection - Ensuring player safety remains at the heart of our commitment to delivering the best customer experience. We continuously enhance our approach to align with market developments and customer needs.

· Provide a secure and trusted platform - It is critical that we uphold the highest ethical standards to maintain the trust of our customers and wider society. 100% of our revenue is derived from regulated or regulating markets. In 2024, we introduced an AI and Data Ethics Charter and launched 'Leading with integrity', new ethics training for managerial roles

· Create an environment for everyone to do their best work - In order to attract a broad and diverse pool of talent, we strive to be an employer of choice with a dynamic and supportive culture. In 2024, we revamped our objective programme, Your Goals, and developed our first global Employer Value Proposition. Our efforts to promote wellbeing and inclusion were recognised by the 2024 All-In-Diversity Project Index

· Positively impact our communities - In 2024 we voluntarily contributed £21.9m to safer gambling initiatives and other good causes. To support our reset GHG emissions reduction targets, we have partnered with Normative, a science-based carbon accounting platform, to drive emissions reduction through data-driven insights. Through initiatives such as our Pitching In investment programme, we continue to support grassroots sport, funding non-league football and promoting engagement between local clubs and their communities via the Trident Community Fund

Sustainability Recognitions in 2024 include:

· Tier 1 in the CCLA Corporate Mental Health Benchmark UK 100

· Ranked Second in the 2024 All-In-Diversity Project Index

· Awarded highest safer gambling certification in the UK by independent charity focussed on preventing gambling harm

· Recognised among the Top 20 UK Best Companies to Work For - LinkedIn 2024

· Achieved AAA rating from MSCI, and retained inclusion in FTSE4Good and Dow Jones Sustainability Indices

· SBC Global Socially Responsible Operator of the Year awarded to the Entain US Foundation

Our ongoing sustainability efforts reflect our commitment to responsible growth, ethical leadership, and positive societal impact.

Notes

(1) EBITDA is defined as earnings before interest, tax, depreciation and amortisation, share based payments and share of JV income. EBITDA is stated pre-separately disclosed items

(2) Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2024 exchange rates

(3) Proforma references include all 2023 acquisitions as if they had been part of the Group since 1 January 2023

(4) These results are unaudited

(5) Brazil's regulated sports betting and gaming regime launched on 1 January 2025

(6) BGC announced new voluntary industry code on customer checks on 1 May 2024

(7) Adjusted figures normalise for Q4 2023 BetMGM rewards points adjustments across both Online Sports and iGaming, and December 2024 theoretical margin in Sports

Financial Results and the use of non-GAAP measures

The Group's statutory financial information is prepared in accordance with International Financial Reporting Standards ("IFRS") and IFRS Interpretations Committee (IFRS IC) pronouncements as adopted for use in the European Union. In addition to the statutory information provided, management have also provided additional information in the form of Contribution and EBITDA as these metrics are industry standard KPIs which help facilitate the understanding of the Group's performance in comparison to its peers. A full reconciliation of these non-GAAP measures is provided within the Income Statement and supporting memo.

During the current year, the Group has amended its operating segments in line with the revisions to the Group's reporting to the executive management team ("CODM"). The Group's operating segments are aggregated into four reportable segments; UK&I, International, CEE and Corporate, with a New Opportunities segment also present in 2023.

CHIEF FINANCIAL OFFICER'S REVIEW

FINANCIAL PERFORMANCE REVIEW

Group

	Reported results¹
Year ended 31 December	2024	2023	Change	CC²
	£m	£m	%	%
NGR	5,161.9	4,833.1	7%	9%
VAT/GST	(72.7)	(63.5)	(14%)	(18%)
Revenue	5,089.2	4,769.6	7%	9%

Gross profit	3,118.1	2,907.0	7%

Contribution⁴	2,480.5	2,279.4	9%

Operating costs	(1,391.7)	(1,271.5)	(9%)

Underlying EBITDA⁵	1,088.8	1,007.9	8%

Share based payments	(13.3)	(21.7)	39%
Underlying depreciation and amortisation	(344.7)	(301.5)	(14%)
Share of JV loss	(114.2)	(42.9)	(166%)
Underlying operating profit⁷	616.6	641.8	(4%)

Reported Results¹:

NGR and Revenue increased by +7% (both +9%cc²) versus the prior year, with the benefit of annualisation of 2023 acquisitions, strong underlying performance in several of our key markets and the return to growth in the UK. Proforma³ NGR was +4%cc² year on year with Online +6%cc² and Retail in line.

Contribution⁴ in the year of £2,480.5m was +9% higher than 2023. Contribution⁴ margin was +0.9pp higher than 2023, reflecting the benefit of geographic mix on the blended margin and a focus on marketing efficiencies.

Operating costs were 9% higher due to annualisation of the 2023 acquisitions and increased colleague bonus costs. Resulting underlying EBITDA⁵ of £1,088.8m was +8% higher than 2023.

Share based payment charges were £8.4m lower than 2023, while underlying depreciation and amortisation was 14% higher, reflecting the impact of prior year acquisitions and continued investment in product. Share of JV losses of £114.2m includes an operating loss of £109.4m relating to BetMGM (2023: £42.0m).

Group underlying operating profit⁷ of £616.6m was -4% lower than 2023. After separately disclosed items of £866.7m (2023: £1,286.5m), the Group made an operating loss of £250.1m (2023: loss of £644.7m).

UK & Ireland

	UK & Ireland Total			UK & Ireland Online				UK & Ireland Retail
Year ended 31 December	FY	FY	Change		FY	FY	Change	FY	FY	Change
	2024	2023	%		2024	2023	%	2024	2023	%
	£m	£m			£m	£m		£m	£m
Sports wagers	4,920.4	5,176.2	(5%)		2,276.2	2,480.0	(8%)	2,644.2	2,696.2	(2%)

Sports margin	17.0%	15.7%	1.3pp		13.5%	12.0%	1.5pp	20.0%	19.2%	0.8pp

Sports NGR	796.5	775.2	3%		262.3	248.4	6%	534.2	526.8	1%
Gaming NGR	1,256.9	1,272.5	(1%)		722.3	715.9	1%	534.6	556.6	(4%)
B2B NGR	-	-	-		-	-	-	-	-	-
Total NGR	2,053.4	2,047.7	0%		984.6	964.3	2%	1,068.8	1,083.4	(1%)
EU VAT/GST	(4.3)	(4.0)	(8%)		(4.3)	(4.0)	(8%)	-	-	-
Revenue	2,049.1	2,043.7	0%		980.3	960.3	2%	1,068.8	1,083.4	(1%)

Gross profit	1,395.8	1,385.7	1%		625.8	601.5	4%	770.0	784.2	(2%)

Contribution⁴	1,169.4	1,176.4	(1%)		401.5	394.6	2%	767.9	781.8	(2%)
Contribution⁴ margin	56.9%	57.4%	(0.5pp)		40.8%	40.9%	(0.1pp)	71.8%	72.2%	(0.4pp)

Operating costs	(732.1)	(706.1)	(4%)		(175.4)	(158.2)	(11%)	(556.7)	(547.9)	(2%)

Underlying EBITDA⁵	437.3	470.3	(7%)		226.1	236.4	(4%)	211.2	233.9	(10%)

Share based payments	(5.9)	(7.8)	24%		(4.1)	(5.4)	24%	(1.8)	(2.4)	25%
Underlying depreciation and amortisation	(145.8)	(138.0)	(6%)		(54.4)	(44.6)	(22%)	(91.4)	(93.4)	2%
Share of JV (loss)/income	-	-	-		-	-	-	-	-	-

Underlying operating profit⁷	285.6	324.5	(12%)		167.6	186.4	(10%)	118.0	138.1	(15%)

Reported Results¹:

NGR in the first half was down -6%, reflecting the impact that our previous approach to regulatory implementations had on our customers' experience and engagement. Following our focused effort to simplify customer journeys, NGR in H2⁶ grew +7%.

In Online, NGR was +2% year on year with both sports +6% and gaming +1% ahead. Following a decline of -8% in the first half, NGR in H2⁶ was +14%cc² higher than in 2023. Actives were ahead year on year by +11% and spend per head showed growth in both sports and gaming during Q4⁶.

In Retail, NGR was -1%cc² YoY (LFL +1%), with sports +2%cc² and gaming -4%cc². Whilst NGR was behind year on year, H2⁶ NGR was +2%cc² YoY (+4% LFL) following the full roll out of new Kascada cabinets in Q3.

Gross profit of £1,395.8m was £10.1m ahead of 2023 with margin of 68%, marginally ahead of 2023. Marketing spend was £17.1m higher than 2023, resulting in contribution⁴ of £1,169.4m, down £7.0m versus 2023.

Operating costs were -4% higher than 2023, reflecting higher colleague bonus costs, offset by cost control savings and the impact of shop closures in Retail. Resulting EBITDA⁵ of £437.3m was £33.0m lower than 2023 (H1⁶ down £43m, H2⁶ up £10m). After charging depreciation and share based payments, operating profit⁷ was £285.6m. Increased depreciation charges reflected investment in our product offerings across both channels.

As a result of continuing soft footfall across our Retail estate in Republic of Ireland, an impairment charge of £8.7m has been recognised.

After separately disclosed items of £3.8m (2023: £14.3m), the operating profit was £281.8m (2023: £310.2m).

International

	International Total				International Online				International Retail
Year ended 31 December	FY	FY	Change	FY		FY	Change	FY	FY	Change
	2024	2023	%	2024		2023	%	2024	2023	%
	£m	£m		£m		£m		£m	£m
Sports wagers	12,382.3	12,004.7	3%	10,791.0		10,503.5	3%	1,591.3	1,501.2	6%

Sports margin	14.5%	14.3%	0.2pp	14.1%		13.8%	0.3pp	17.6%	18.0%	(0.4pp)

Sports NGR	1,519.2	1,407.7	8%	1,237.0		1,137.3	9%	282.2	270.4	4%
Gaming NGR	1,040.6	1,025.5	1%	1,013.2		999.5	1%	27.4	26.0	5%
B2B NGR	80.6	57.9	39%	80.6		57.9	39%	-	-	-
Total NGR	2,640.4	2,491.1	6%	2,330.8		2,194.7	6%	309.6	296.4	4%
EU VAT/GST	(68.4)	(59.5)	(15%)	(63.0)		(55.9)	(13%)	(5.4)	(3.6)	(50%)
Revenue	2,572.0	2,431.6	6%	2,267.8		2,138.8	6%	304.2	292.8	4%

Gross profit	1,443.4	1,340.7	8%	1,321.5		1,218.2	8%	121.9	122.5	0%

Contribution⁴	1,062.0	942.9	13%	950.9		827.8	15%	111.1	115.1	(3%)
Contribution⁴ margin	40.2%	37.9%	2.3pp	40.8%		37.7%	3.1pp	35.9%	38.8%	(2.9pp)

Operating costs	(468.0)	(395.9)	(18%)	(397.2)		(331.3)	(20%)	(70.8)	(64.6)	(10%)

Underlying EBITDA⁵	594.0	547.0	9%	553.7		496.5	12%	40.3	50.5	(20%)

Share based payments	(3.9)	(6.0)	35%	(3.9)		(6.0)	35%	-	-	-
Underlying depreciation and amortisation	(180.0)	(152.2)	(18%)	(143.4)		(116.4)	(23%)	(36.6)	(35.8)	(2%)
Share of JV (loss)/income	(3.1)	(1.5)	(107%)	(3.1)		(1.5)	(107%)	-	-	-

Underlying operating profit⁷	407.0	387.3	5%	403.3		372.6	8%	3.7	14.7	(75%)

Reported Results¹:

International NGR for 2024 was +6%, +10%cc², or +6%cc² proforma³ higher than 2023 with strong underlying performance in all of our key markets and growth in both sports NGR, +6%cc² proforma³, and gaming NGR, +5%cc² proforma³. International Online NGR grew +6%, +10%cc² (proforma³ +7%cc²) and Retail grew +4%, +7%cc² (+1%cc² proforma³).

In Brazil, NGR was up +41%cc² year on year, with actives growing in line with NGR, reflecting our end-to-end reinvigorated go-to-market approach. We successfully transitioned into a regulated regime from 1 January 2025 and remain confident that SportingBet is well placed for growth in this highly competitive market.

Online NGR in Australia was +1%cc² ahead of 2023, returning to growth in H2⁶, +2%cc², despite the softer market conditions and last year's introduction of BetStop, the National Self-Exclusion Register. Our year on year performance demonstrates that our differentiated brands and engaging products continue to resonate with customers.

Italy NGR was +3%cc² ahead of 2023, Online +2%cc² and Retail +4%cc². Online market share lowered over 2024, although H2⁶ showed signs of stabilisation. Retail market share remained flat and continues to rank well on profitability per shop with approximately 15% share of revenue from 11% of retail units.

Despite the tougher macro-economic environment in New Zealand, NGR was +1%cc² ahead of 2023 on a proforma³ basis. Online was up +4%cc², with H2⁶ +7%cc² following the successful migration to the Australian platform and the launch of new sister brand, betcha. Retail down -9%cc².

Baltics and Nordics Online NGR was +9%cc² year on year with inflationary pressures in the region starting to ease and our content leadership strategy landing well.

In Germany, our business has stabilised with NGR in line year on year and +2%cc² in H2⁶.

Proforma³ NGR in the Netherlands was down -13%cc² versus 2023 following further regulatory tightening in the year.

Georgia NGR was +13%cc² ahead of 2023 mainly driven by gaming products, with Crystalbet maintaining its market leading position.

Gross profit for our International segment was +8% ahead of 2023 given the NGR growth and favourable geographic mix. Marketing spend was slightly lower versus prior year despite increased NGR, seeing contribution⁴ margin increase by +2.3pp and delivering contribution⁴ of £1,062.0m.

Operating costs were 18% higher year on year as a result of inflation, higher colleague bonus costs and the annualisation of 2023 acquisitions. Resulting EBITDA⁵ of £594.0m was £47.0m ahead of 2023, and after deducting depreciation and share based payments, operating profit⁷ was £407.0m, £19.7m ahead. The increase in depreciation has largely been driven by the annualisation of 2023 acquisitions and the New Zealand partnership.

As a result of the tougher macro-economic environment in New Zealand and the delay in the introduction of the legislative net, an impairment of £142.5m has been recognised against TAB New Zealand. Additionally, regulation changes have impacted the Netherlands and Belgium, resulting in impairments being recorded on BetCity (£113.1m) and Belgium (£76.3m) assets. In relation to these, there has also been a release of BetCity and TAB New Zealand contingent consideration totalling c£80m.

After separately disclosed items of £524.0m (2023: £435.5m), the operating loss was £117.0m (2023: £48.2m).

CEE (Croatia and Poland)

	CEE Total			CEE Online			CEE Retail
Year ended 31 December	FY	FY	Change	FY	FY	Change	FY	FY	Change
	2024	2023	%	2024	2023	%	2024	2023	%
	£m	£m		£m	£m		£m	£m
Sports wagers	1,582.7	896.8	76%	1,325.4	737.8	80%	257.3	159.0	62%

Sports margin	22.8%	18.7%	4.1pp	22.1%	17.7%	4.4pp	26.4%	23.5%	2.9pp

Sports NGR	361.5	187.8	92%	288.9	145.1	99%	72.6	42.7	70%
Gaming NGR	126.5	113.3	12%	116.0	102.6	13%	10.5	10.7	(2%)
B2B NGR	-	-	-	-	-	-	-	-	-
Total NGR	488.0	301.1	62%	404.9	247.7	63%	83.1	53.4	56%
EU VAT/GST	-	-	-	-	-	-	-	-	-
Revenue	488.0	301.1	62%	404.9	247.7	63%	83.1	53.4	56%

Gross profit	278.9	180.6	54%	226.7	146.9	54%	52.2	33.7	55%

Contribution⁴	249.1	167.2	49%	199.5	134.5	48%	49.6	32.7	52%
Contribution⁴ margin	51.0%	55.5%	(4.5pp)	49.3%	54.3%	(5.0pp)	59.7%	61.2%	(1.5pp)

Operating costs	(78.2)	(45.6)	(71%)	(38.3)	(21.0)	(82%)	(39.9)	(24.6)	(62%)

Underlying EBITDA⁵	170.9	121.6	41%	161.2	113.5	42%	9.7	8.1	20%

Share based payments	-	-	-	-	-	-	-	-	-
Underlying depreciation and amortisation	(18.0)	(7.8)	(131%)	(10.3)	(1.9)	(442%)	(7.7)	(5.9)	(31%)
Share of JV (loss)/income	-	-	-	-	-	-	-	-	-

Underlying operating profit⁷	152.9	113.8	34%	150.9	111.6	35%	2.0	2.2	(9%)

Reported Results¹:

CEE NGR for 2024 was +62% (+65%cc²) ahead of the prior year, reflecting the acquisition of STS in Poland during H2⁶ 2023. On a proforma³ basis, CEE NGR was +12%cc² ahead of the prior year.

NGR in Croatia was +16%cc² ahead of 2023 with our SuperSport brand continuing to perform well and maintaining the leading position in the market. Online NGR was +19%cc² ahead with Retail +5%cc².

Proforma³ NGR in Poland was +8%cc² ahead of 2023 with Online +8%cc² and Retail +12%cc². Despite the increasingly competitive landscape in Poland, we have maintained market leadership and growth in the year.

Gross profit of £278.9m was +54% ahead of 2023. Whilst gross profit margin of 57.2% was -2.8pp behind 2023, this reflects the impact of the acquired Polish business on the blended CEE segment rather than an underlying reduction in margin. Marketing spend of £29.8m was £16.4m higher than 2023 reflecting both the impact of the acquisition of STS in Poland and additional spend in both markets to support the underlying growth in NGR. Resulting contribution⁴ of £249.1m was +49% ahead of 2023, at a margin of 51.0%.

Operating costs were £32.6m higher than 2023 as a result of costs associated with the acquired STS business and inflation. Resulting EBITDA⁵ of £170.9m was £49.3m ahead of the prior year, up +41% or up +8% on a proforma³ basis. After charging depreciation of £18.0m, operating profit⁷ was £152.9m, £39.1m ahead of 2023. The increase in depreciation is due to the impact of the acquired Polish business.

The current competitor landscape in Poland has led to an impairment of £75.9m being recognised in relation to STS.

After separately disclosed items of £243.9m (2023: £111.2m), the operating loss was £91.0m (2023: profit of £2.6m).

New Opportunities

	Reported results¹
Year ended 31 December	2024	2023	Change
	£m	£m	%
Underlying EBITDA⁵	-	(18.2)	100%

Share based payments	-	-	-
Underlying depreciation and amortisation	-	(2.7)	100%
Share of JV loss	-	-	-
Underlying operating loss⁷	-	(20.9)	100%

Reported Results¹:

Costs in 2023 reflect those incurred in the Group's former Unikrn business which has now been closed as a customer facing operation. After separately disclosed items of £36.3m, the operating loss for 2023 was £57.2m.

Corporate

		Reported results¹
Year ended 31 December	2024		2023	Change
	£m		£m	%
Underlying EBITDA⁵	(113.4)		(112.8)	(1%)

Share based payments	(3.5)		(7.9)	56%
Underlying depreciation and amortisation	(0.9)		(0.8)	(13%)
Share of JV loss	(111.1)		(41.4)	(168%)

Underlying operating loss⁷	(228.9)		(162.9)	(41%)

Reported Results¹:

Corporate underlying costs⁵ of £113.4m were broadly in line with last year.

After share based payments, depreciation and amortisation and share of JV losses, Corporate underlying operating loss⁷ was £228.9m, an increase of £66.0m versus the prior year. This was driven by a £67.4m increase in the share of loss in the US JV, BetMGM. After separately disclosed items of £95.0m (2023: £689.2m), the operating loss of £323.9m (2023: £852.1m) was £528.2m lower than in 2023.

Notes

(1) 2024 reported results are audited and relate to continuing operations

(2) Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2024 exchange rates

(3) Proforma references include all 2023 acquisitions as if they had been part of the Group since 1 January 2023

(4) Contribution represents gross profit less marketing costs and is a key performance metric used by the Group

(5) EBITDA is defined as earnings before interest, tax, depreciation and amortisation, share based payments and share of JV income. EBITDA is stated pre separately disclosed items

(6) These results are unaudited

(7) Stated pre separately disclosed items

STATUTORY PERFORMANCE REVIEW

	Results¹
	2024	2023	Change	CC²
Year ended 31 December	£m	£m	%	%
NGR	5,161.9	4,833.1	7%	9%
Revenue	5,089.2	4,769.6	7%	9%
Gross profit	3,118.1	2,907.0	7%
Contribution³	2,480.5	2,279.4	9%
Underlying EBITDA⁴	1,088.8	1,007.9	8%
Share based payments	(13.3)	(21.7)	39%
Underlying depreciation and amortisation	(344.7)	(301.5)	(14%)
Share of JV and associates loss	(114.2)	(42.9)	(166%)
Underlying operating profit⁵	616.6	641.8	(4%)
Net underlying finance costs⁵	(264.2)	(229.4)
Net foreign exchange/financial instruments	166.0	32.5
Profit before tax pre separately disclosed items	518.4	444.9
Separately disclosed items:
Amortisation of acquired intangibles	(286.8)	(254.6)
Recognition of HMRC settlement liability	(3.9)	(585.0)
Other	(585.1)	(447.9)
Loss before tax	(357.4)	(842.6)
Tax	(103.6)	(36.1)
Loss after tax from continuing activities	(461.0)	(878.7)
Discontinued operations	-	(57.8)
Loss after tax	(461.0)	(936.5)

NGR and Revenue

Group NGR and revenue were +7% ahead of last year and +9% ahead on a constant currency basis², with Online NGR +9% and Retail NGR +2% year on year. Further details are provided in the Financial Performance Review section.

Operating profit/(loss)

Group operating loss for the year was £250.1m, £394.6m lower than in 2023.

The Group reported underlying operating profit⁵ of £616.6m, -4% lower than 2023 (2023: 641.8m) largely due to increased joint venture losses. Underlying EBITDA⁵ was +8% ahead, largely in line with the revenue increase. Depreciation and amortisation was 14% higher than 2023 driven by continued investment in product and technology. The Group's share of BetMGM losses in the year were £109.4m, £67.4m higher than 2023 as the business invested in product and marketing to rebuild momentum and strengthen the business for the future. Analysis of the Group's performance for the year is detailed in the Financial Performance Review section.

Financing costs

Finance costs recorded by the group for 2024 were £273.3m (2023: £230.4m).

Underlying finance costs of £264.2m excluding separately disclosed items of £9.1m (2023: £1.0m) were £34.8m higher than 2023 primarily driven by interest on the increase in Group debt.

Net gains on financial instruments, driven primarily by a foreign exchange gain on re-translation of debt related items and the settlement of a number of currency swaps, were £166.0m in the year (2023: £32.5m). This gain is offset by a foreign exchange loss on the translation of assets in overseas subsidiaries which is recognised in reserves and forms part of the Group's commercial hedging strategy.

Separately disclosed items

Items separately disclosed before tax for the year amount to £875.8m (2023: £1,287.5m) and relate to £286.8m of amortisation on acquired intangibles (2023: £254.6m), restructuring program costs, including Project Romer, of £49.6m (2023: £49.7m) and legal and onerous contract costs of £6.7m (2023: £17.6m) primarily relating to the costs associated with our commitments to the DPA and associated shareholder litigation.

The Group has also recorded an impairment charge of £476.4m during the current year (2023: £289.0m) with impairment recognised against the Group's Tab New Zealand business of £142.5m, the BetCity business of £113.1m, STS of £75.9m, Belgium of £76.3m and an impairment of the Group's Republic of Ireland retail portfolio of £8.7m. Further details are provided in Note 11. There has also been a write down of £18.5m of certain New Zealand assets following the platform migration and a number of smaller impairments against other assets that the Group no longer intends to use including shop closures.

In addition, £43.3m has been recorded on movements in fair value of contingent consideration (2023: £71.8m), relating to discount unwind and reassessment of contingent consideration and put option values primarily relating to Tab NZ and SuperSport acquisitions and the release of the BetCity contingent consideration.

In the year the Group also recorded £3.9m of discount unwind relating to the DPA liability (2023: £585.0m charge for the initial recognition of the liability) and a £9.1m non-cash financing cost following the H1 refinancing (2023: £1.0m).

In the prior year the Group incurred corporate transaction costs of £17.8m.

Separately disclosed items
	2024 £m	2023 £m
Legal settlement	(3.9)	(585.0)
Amortisation of acquired intangibles	(286.8)	(254.6)
Impairment	(476.4)	(289.0)
Corporate transaction costs	-	(17.8)
Restructuring costs	(49.6)	(49.7)
Legal and onerous contract costs	(6.7)	(17.6)
Movement in fair value of contingent consideration	(43.3)	(71.8)
Other including financing	(9.1)	(2.0)
Total	(875.8)	(1,287.5)

Profit/(loss) before tax

The Group's loss before tax of £357.4m is £485.2m lower than 2023 primarily as a result of the reduction of one-off costs included in separately disclosed items.

Group profit before tax⁵ and separately disclosed items was £518.4m (2023: £444.9m), an increase compared to the prior year of £73.5m with growth in underlying EBITDA⁴ more than offset by an increase in BetMGM losses and depreciation and amortisation and interest. After charging separately disclosed items, the Group recorded a pre-tax loss from continuing operations of £357.4m (2023: £842.6m), with the separately disclosed costs discussed above having a significant impact on the reported results.

Taxation

The tax charge on continuing operations for the year was £103.6m (2023: £36.1m), reflecting an underlying effective tax rate pre-BetMGM losses and foreign exchange gains on external debt of 25.1% (2023: 23.0%), after a tax credit on separately disclosed items of £35.3m (2023: £69.7m). The increase year on year of £67.5m is the result of growth in underlying profit before tax pre-BetMGM losses, increases in domestic tax rates, the introduction of minimum tax regimes, and the one-off separately disclosed Gibraltar marketing deduction

Discontinued operations

During the prior year, the Group recorded a £57.8m loss in discontinued operations relating to its former Intertrader business which was disposed of in November 2021. The loss recorded primarily reflects legal costs associated with historic matters.

Cashflow

Year ended 31 December	2024	2023
	£m	£m
Cash generated by operations	976.2	810.0
Corporation tax	(142.0)	(137.3)
Interest	(254.9)	(224.6)
Net cash generated from operating activities	579.3	448.1

Cash flows from investing activities:
Acquisitions & disposals	-	(1,315.4)
Cash acquired/disposed	-	87.9
Dividends received from associates	1.4	9.6
Net capital expenditure	(298.1)	(259.9)
Investment in Joint ventures	(19.8)	(40.7)
Purchase of Investments	-	(3.1)
Net cash used in investing activities	(316.5)	(1,521.6)

Cash flows from financing activities:
Equity issue	-	589.8
Net proceeds from borrowings	591.7	1,780.3
Repayment of borrowings	(315.9)	(1,428.6)
Subscription of funds from non-controlling interest	-	350.5
Settlement of financial instruments and other financial liabilities	(138.8)	(279.9)
Repayment of finance leases	(68.0)	(68.5)
Equity dividends paid	(116.3)	(106.9)
Minority dividends paid	(12.5)	(7.4)
Disposal of investment	5.2	-
Payments to non-controlling interests	(4.1)	-
Net cash used in financing activities	(58.7)	829.3

Foreign exchange	(15.8)	(13.7)
Net increase in cash	188.3	(257.9)

During the year, the Group had a net cash inflow of £188.3m (2023: outflow of £257.9m).

Net cash generated by operations was £976.2m (2023: £810.0m) including £1,088.8m of underlying EBITDA⁴ (2023: £1,007.9m) and a working capital outflow of £9.1m (2023: £601.8m inflow) offset by separately disclosed items that are reported in operating activities of £103.5m (2023: £742.9m) excluding items charged to depreciation, amortisation and impairment. In the prior year a £57.8m loss on discontinued operations was also included. Included within working capital is a £67.0m inflow for balances held with payment service providers as well as customer funds, which are net debt neutral (2023: £29.7m outflow).

During the year, £142.0m was paid out in relation to corporate taxes (2023: £137.3m) with a further £254.9m paid out in interest (2023: £224.6m).

Net cash used in investing activities for the year was £316.5m (2023: £1,521.6m) and includes net investment in capital expenditure of £298.1m (2023: £259.9m) and an additional £19.8m invested in BetMGM (2023: £40.7m). In the prior year net cash outflows on acquisitions of £1,315.4m were also incurred. These outflows were partially offset by dividends received from associates of £1.4m (2023: £9.6m).

Net cash used in financing activities for the year was £58.7m (2023: £829.3m received). £591.7m was raised through new financing facilities (2023: £1,780.3m) which were used, in part, to repay £315.9m of debt (2023: £1,428.6m). In the prior year, £589.8m was also raised through an equity issuance and £350.5m received from minority holdings to meet their obligations under the SuperSport earn-out and STS acquisition which were recorded in non-controlling interests. £138.8m was paid on settlement of other financial instruments and liabilities, primarily relating to swap settlements and contingent consideration on previous acquisitions including New Zealand (2023: £279.9m). Lease payments of £68.0m (2023: £68.5m) including those on non-operational shops, were made in the year.

During the year, the Group paid £116.3m in equity dividends (2023: £106.9m) and £12.5m in dividends to the minority interest in Entain CEE (2023: £7.4m). There was also £5.2m received on disposal of an investment.

Net debt and liquidity

As at 31 December 2024, adjusted net debt⁶ was £3,339.1m and represented an adjusted net debt⁶ to underlying EBITDA⁴ ratio of 3.1x (3.5x including the DPA liability). The closing net debt has benefitted from a working capital inflow in the year which is expected to partially unwind in 2025. The Group has not drawn down on the revolving credit facility at 31 December 2024 (2023: £295m).

	Par value	Issue costs/ Premium	Total
	£m	£m	£m
Term loans	(3,681.9)	50.6	(3,631.3)
Interest accrual	0.1	-	0.1
	(3,681.8)	50.6	(3,631.2)
Cash			588.9
Net debt			(3,042.3)
Cash held on behalf of customers			(196.6)
Fair value of swaps held against debt instruments			66.8
Other debt related items*			157.5
Lease liabilities			(324.5)
Adjusted net debt			(3,339.1)

*Other debt related items include balances held with payment service providers, deposits and other similar items

Refinancing

On 1 March 2024, the Group raised an additional £300m of borrowings under a bank loan facility which was used to repay all amounts drawn on the Group's revolving credit facility. On 1 March 2024, the commitments available under the Group's revolving credit facility were increased by £45m to £635m.

On 29 April 2024, the Group announced the successful re-pricing of the existing $1,740m loan with a margin reduction of 75bps and removal of the 10bps credit adjustment spread. Additionally, $500m was added on to increase the loan to $2,240m. There was no change in the maturity date of October 2029. It was also announced that the €1,030m loan was re-priced with a margin reduction of 50bps to 325bps and this loan was also increased by €235m to €1,265m. There was no change in the maturity date of June 2028.

The proceeds of the extended term loans were used to immediately repay the £300m bank loan borrowed earlier in Q1 2024 with the remaining funds used to improve the Group's liquidity.

Going Concern

In adopting the going concern basis of preparation in the financial statements, the Directors have considered the current trading performance of the Group, the financial forecasts and the principal risks and uncertainties. In addition, the Directors have considered all matters discussed in connection with the long-term viability statement including the modelling of 'severe but plausible' downside scenarios such as legislation changes impacting the Group's Online business and severe data privacy and cybersecurity breaches.

Given the level of the Group's available cash and the forecast covenant headroom even under the sensitised downside scenarios, the Directors believe that the Group and the Company are well placed to manage the risks and uncertainties that it faces. As such, the Directors have a reasonable expectation that the Group and the Company will have adequate financial resources to continue in operational existence, for at least 12 months (being the going concern assessment period) from date of approval of the financial statements, and have, therefore, considered it appropriate to adopt the going concern basis of preparation in the financial statements.

Notes

(1) 2024 and 2023 statutory results are audited, with the tables presented relating to continuing operations and including both statutory and non-statutory measures

(2) Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2024 exchange rates

(3) Contribution represents gross profit less marketing costs and is a key performance metric used by the Group

(4) EBITDA is earnings before interest, tax, depreciation and amortisation, share based payments and share of JV income. EBITDA is stated pre separately disclosed items

(5) Stated pre separately disclosed items

(6) Adjusted net debt excludes the DPA settlement. Leverage also excludes any benefit from future BetMGM EBITDA or the payments due to acquire the minority interests in Entain CEE

CONSOLIDATED INCOME STATEMENT

				2024			2023
	Notes	Underlying items	Separately disclosed items (Note 6)	Total	Underlying items	Separately disclosed items (Note 6)	Total
		£m	£m	£m	£m	£m	£m
Net Gaming Revenue		5,161.9	-	5,161.9	4,833.1	-	4,833.1
VAT/GST		(72.7)	-	(72.7)	(63.5)	-	(63.5)
Revenue	5	5,089.2	-	5,089.2	4,769.6	-	4,769.6
Cost of sales		(1,971.1)	-	(1,971.1)	(1,862.6)	-	(1,862.6)
Gross profit		3,118.1	-	3,118.1	2,907.0	-	2,907.0
Administrative costs		(2,387.3)	(866.7)	(3,254.0)	(2,222.3)	(1,286.5)	(3,508.8)
Contribution¹		2,480.5	-	2,480.5	2,279.4	-	2,279.4
Administrative costs excluding marketing		(1,749.7)	(866.7)	(2,616.4)	(1,594.7)	(1,286.5)	(2,881.2)
Group operating profit/(loss) before share of results from joint ventures and associates		730.8	(866.7)	(135.9)	684.7	(1,286.5)	(601.8)
Share of results from joint ventures and associates		(114.2)	-	(114.2)	(42.9)	-	(42.9)
Group operating profit/(loss)		616.6	(866.7)	(250.1)	641.8	(1,286.5)	(644.7)
Finance expense	7	(280.3)	(9.1)	(289.4)	(241.8)	(1.0)	(242.8)
Finance income	7	16.1	-	16.1	12.4	-	12.4
Gains/(losses) arising from change in fair value of financial instruments	7	145.0	-	145.0	(90.6)	-	(90.6)
Gains arising from foreign exchange on debt instruments	7	21.0	-	21.0	123.1	-	123.1
Profit/(loss) before tax		518.4	(875.8)	(357.4)	444.9	(1,287.5)	(842.6)
Income tax		(138.9)	35.3	(103.6)	(105.8)	69.7	(36.1)
Profit/(loss) from continuing operations		379.5	(840.5)	(461.0)	339.1	(1,217.8)	(878.7)
Loss for the year from discontinued operations after tax		-	-	-	-	(57.8)	(57.8)
Profit/(loss) for the year		379.5	(840.5)	(461.0)	339.1	(1,275.6)	(936.5)

Attributable to:
Equity holders of the parent		335.6	(788.3)	(452.7)	304.1	(1,232.7)	(928.6)
Non-controlling interests		43.9	(52.2)	(8.3)	35.0	(42.9)	(7.9)
		379.5	(840.5)	(461.0)	339.1	(1,275.6)	(936.5)
Earnings per share on profit/(loss) for the year
from continuing operations		30.2p²		(70.8p)	44.3p²		(141.4p)
From profit/(loss) for the year	9	30.2p²		(70.8p)	44.3p²		(150.7p)
Diluted earnings per share on profit/(loss) for the year
from continuing operations		29.9p²		(70.8p)	44.2p²		(141.4p)
From profit/(loss) for the year	9	29.9p²		(70.8p)	44.2p²		(150.7p)

Memo

EBITDA³	1,088.8	(103.5)	985.3	1,007.9	(742.9)	265.0
Share-based payments	(13.3)	-	(13.3)	(21.7)	-	(21.7)
Depreciation, amortisation and impairment	(344.7)	(763.2)	(1,107.9)	(301.5)	(543.6)	(845.1)
Share of results from joint ventures and associates	(114.2)	-	(114.2)	(42.9)	-	(42.9)
Group operating profit/(loss)	616.6	(866.7)	(250.1)	641.8	(1,286.5)	(644.7)

1. Contribution represents gross profit less marketing costs and is a key performance metric used by the Group.

2. The calculation of underlying earnings per share has been adjusted for separately disclosed items, and for the removal of foreign exchange volatility arising on financial instruments as it provides a better understanding of the underlying performance of the Group. See Note 9 for further details.

3. EBITDA is earnings before interest, tax, depreciation and amortisation, share based payments and share of JV income.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Notes	2024 £m	2023 £m
Loss for the year		(461.0)	(936.5)
Other comprehensive (expense)/income:

Items that may be reclassified to profit or loss:
Currency differences on translation of foreign operations		(189.4)	(83.5)
Total items that may be reclassified to profit or loss		(189.4)	(83.5)

Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit pension scheme		(8.1)	(3.7)
Tax on re-measurement of defined benefit pension scheme		4.8	1.3
Surplus on revaluation of other investment		-	1.1
Share of associate other comprehensive expense		-	(1.1)
Total items that will not be reclassified to profit or loss		(3.3)	(2.4)

Other comprehensive expense for the year, net of tax		(192.7)	(85.9)
Total comprehensive expense for the year		(653.7)	(1,022.4)

Attributable to:
Equity holders of the parent		(621.4)	(1,020.8)
Non-controlling interests		(32.3)	(1.6)

CONSOLIDATED BALANCE SHEET

	Notes	2024 £m	2023 £m
Assets
Non-current assets
Goodwill	10	4,138.9	4,716.0
Intangible assets	10	3,519.4	3,960.1
Property, plant and equipment	12	573.8	533.4
Interest in joint venture		-	-
Interest in associates and other investments		32.6	47.1
Trade and other receivables		27.1	31.8
Derivative financial instruments		19.1	-
Deferred tax assets		476.1	493.2
Retirement benefit asset		55.1	61.8
		8,842.1	9,843.4
Current assets
Trade and other receivables		563.8	503.2
Income and other taxes recoverable		78.9	71.5
Derivative financial instruments		67.3	31.9
Cash and cash equivalents		588.9	400.6
		1,298.9	1,007.2

Total assets		10,141.0	10,850.6
Liabilities
Current liabilities
Trade and other payables		(1,120.6)	(878.6)
Balances with customers	13	(196.6)	(196.8)
Lease liabilities		(77.2)	(65.7)
Interest-bearing loans and borrowings		(25.3)	(319.2)
Corporate tax liabilities		(76.6)	(48.6)
Provisions		(34.8)	(20.9)
Derivative financial instruments		(8.5)	(117.5)
Deferred and contingent consideration and other financial liabilities		(215.1)	(157.0)
		(1,754.7)	(1,804.3)
Non-current liabilities
Trade and other payables		(286.4)	(433.8)
Interest-bearing loans and borrowings		(3,605.9)	(3,038.8)
Lease liabilities		(247.3)	(210.2)
Deferred tax liabilities		(738.7)	(825.1)
Provisions		(2.9)	(4.2)
Derivative financial instruments		(11.1)	-
Deferred and contingent consideration and other financial liabilities		(1,474.6)	(1,741.5)
		(6,366.9)	(6,253.6)

Total liabilities		(8,121.6)	(8,057.9)
Net assets		2,019.4	2,792.7
Equity
Issued share capital		5.2	5.2
Share premium		1,796.7	1,796.7
Merger reserve		2,527.4	2,527.4
Translation reserve		(15.0)	150.4
Retained earnings		(2,768.6)	(2,211.7)
Equity shareholders' funds		1,545.7	2,268.0
Non-controlling interests		473.7	524.7
Total shareholders' equity		2,019.4	2,792.7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Issued share capital £m	Share premium £m	Merger reserve £m	Translation reserve1 £m	Retained earnings £m	Equity shareholders' funds £m	Non- controlling interests £m	Total shareholders' equity £m
At 1 January 2023	4.8	1,207.3	2,527.4	240.2	(846.9)	3,132.8	183.8	3,316.6
Loss for the year	-	-	-	-	(928.6)	(928.6)	(7.9)	(936.5)
Other comprehensive (expense)/income	-	-	-	(89.8)	(2.4)	(92.2)	6.3	(85.9)
Total comprehensive income	-	-	-	(89.8)	(931.0)	(1,020.8)	(1.6)	(1,022.4)
Issue of shares	0.4	589.4	-	-	-	589.8	-	589.8
Share-based payments charge	-	-	-	-	23.6	23.6	-	23.6
Business combinations	-	-	-	-	-	-	354.0	354.0
Recognition of put option liability	-	-	-	-	(350.5)	(350.5)	-	(350.5)
Purchase of non-controlling interests	-	-	-	-	-	-	(4.1)	(4.1)
Equity dividends (Note 8)	-	-	-	-	(106.9)	(106.9)	(7.4)	(114.3)
At 31 December 2023	5.2	1,796.7	2,527.4	150.4	(2,211.7)	2,268.0	524.7	2,792.7

At 1 January 2024	5.2	1,796.7	2,527.4	150.4	(2,211.7)	2,268.0	524.7	2,792.7
Loss for the year	-	-	-	-	(452.7)	(452.7)	(8.3)	(461.0)
Other comprehensive expense)/income	-	-	-	(165.4)	(3.3)	(168.7)	(24.0)	(192.7)
Total comprehensive income	-	-	-	(165.4)	(456.0)	(621.4)	(32.3)	(653.7)
Share-based payments charge	-	-	-	-	11.9	11.9	-	11.9
Non-controlling interests created	-	-	-	-	-	-	1.4	1.4
Purchase of non-controlling interests	-	-	-	-	3.5	3.5	(7.6)	(4.1)
Equity dividends (Note 8)	-	-	-	-	(116.3)	(116.3)	(12.5)	(128.8)
At 31 December 2024	5.2	1,796.7	2,527.4	(15.0)	(2,768.6)	1,545.7	473.7	2,019.4

1. The translation reserve is used to record exchange differences arising from the translation of the financial statements of subsidiaries with non-sterling functional currencies.

CONSOLIDATED STATEMENT OF CASHFLOWS

	Notes	2024 £m	2023 £m
Cash generated by operations	14	976.2	810.0
Income taxes paid		(142.0)	(137.3)
Net finance expense paid		(254.9)	(224.6)
Net cash generated from operating activities		579.3	448.1

Cash flows from investing activities:
Acquisitions¹		-	(1,315.4)
Cash acquired on business combinations		-	87.9
Dividends received from associates		1.4	9.6
Purchase of intangible assets		(203.9)	(191.5)
Purchase of property, plant and equipment		(94.4)	(69.1)
Proceeds from the sale of property, plant and equipment including disposal of shops		0.2	0.7
Purchase of investments in associates and other investments		-	(3.1)
Investment in joint ventures		(19.8)	(40.7)
Net cash used in investing activities		(316.5)	(1,521.6)

Cash flows from financing activities:
Proceeds from issue of ordinary shares		-	589.8
Net proceeds from borrowings		591.7	1,780.3
Repayment of borrowings		(315.9)	(1,419.2)
Repayment of borrowings on acquisition		-	(9.4)
Subscription of funds from non-controlling interests		-	350.5
Disposal of investment		5.2	-
Settlement of derivative financial instruments		(37.5)	(13.2)
Settlement of other financial liabilities		(101.3)	(266.7)
Payment of lease liabilities		(68.0)	(68.5)
Dividends paid to shareholders		(116.3)	(106.9)
Dividends paid to non-controlling interests		(12.5)	(7.4)
Payments to non-controlling interests		(4.1)	-
Net cash used in financing activities		(58.7)	829.3

Net increase/(decrease) in cash and cash equivalents		204.1	(244.2)
Effect of changes in foreign exchange rates		(15.8)	(13.7)
Cash and cash equivalents at beginning of the year		400.6	658.5
Cash and cash equivalents at end of the year		588.9	400.6

¹Included within the prior year cash flows from acquisitions is £5.4m relating to the purchase of minority holdings in STS.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 Corporate information

Entain plc ("the Company") is a company incorporated and domiciled in the Isle of Man on 5 January 2010 whose shares are traded publicly on the London Stock Exchange. The principal activities of the Company and its subsidiaries ("the Group") are described in the strategic report. The consolidated financial statements of the Group for the year ended 31 December 2024 were authorised for issue in accordance with a resolution of the Directors on 6 March 2025.

The nature of the Group's operations and its principal activities are set out in Note 5.

2 Basis of preparation

The financial information set out above does not constitute the company's statutory accounts for the years ended 31 December 2024 or 2023 but is derived from those accounts. Statutory accounts for 2023 have been delivered to the registrar of companies, and those for 2024 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified and (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report.

The consolidated financial statements of the Group have been prepared in accordance with UK-adopted International Financial Reporting Standards and in accordance with the requirements of the Isle of Man Companies Act 2006 applicable to companies reporting under IFRSs. The accounting policies set out in this section as detailed have been applied consistently year on year other than for the changes in accounting policies set out in Note 3.

The consolidated financial statements are presented in Pounds Sterling (£). All values are in millions (£m) rounded to one decimal place except where otherwise indicated. The separately disclosed items have been included within the appropriate classifications in the consolidated income statement. Further details are given in Note 6.

Going concern

In adopting the going concern basis of preparation in the financial statements, the Directors have considered the current trading performance of the Group, the financial forecasts and the principal risks and uncertainties. In addition, the Directors have considered all matters discussed in connection with the long-term viability statement including the modelling of "severe but plausible" downside scenarios such as legislation changes or breaches impacting the Group's business and severe data privacy and cybersecurity breaches.

3 Changes in accounting policies

From 1 January 2024 the Group has applied, for the first time, certain standards, interpretations and amendments. The adoption of the following standards and amendments to standards did not have a material impact on the current period or any prior period upon transition:

- IAS 1 Presentation of Financial Statements, Classification of liabilities as current or non-current;

- IAS 1 Presentation of Financial Statements, Amendments regarding the classification of debt with covenants;

- IAS 7 Statement of Cash Flows, Supplier finance arrangements;

- IFRS 7 Financial Instruments: Disclosures, Supplier finance arrangements

- IFRS 16 Leases, Amendments regarding seller-lessee subsequent measurement in a sale and leaseback transaction.

4 Summary of significant accounting policies

4.1 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group at 31 December each year. The consolidation has been performed using the results to 31 December for all subsidiaries, using consistent accounting policies. With the exception of a small number of immaterial subsidiaries, the financial statements of those subsidiaries are prepared to 31 December. Control is achieved where the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect these returns through its power over the investee.

All intragroup transactions, balances, income and expenses are eliminated on consolidation.

Subsidiaries are consolidated, using the acquisition method of accounting, from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred from the Group. On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at fair value at the date of acquisition. Any excess of the cost of acquisition over the fair values of the separately identifiable net assets acquired is recognised as goodwill. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by the Group.

4.2 Critical accounting estimates and judgements

The preparation of financial information requires the use of assumptions, estimates and judgements about future conditions. Use of available information and application of judgement are inherent in the formation of estimates. Actual results in the future may differ from those reported.

Judgements

Management believes that the areas most notable where judgement has been applied are:

- separately disclosed items (Note 6)

- contingent liabilities.

Separately disclosed items

To assist in understanding the underlying performance of the Group, management applies judgement to identify those items that are deemed to warrant separate disclosure due to either their nature or size. Whilst not limited to, the following items of pre-tax income and expense are generally disclosed separately:

- amortisation of acquired intangibles resulting from IFRS 3 "Business Combinations" fair value exercises;

- profits or losses on disposal, closure, or impairment of non-current assets or businesses;

- corporate transaction and restructuring costs;

- certain legal, regulatory and tax litigation;

- changes in the fair value of contingent consideration; and

- the related tax effect of these items.

Any other non-recurring items are considered individually for classification as separately disclosed by virtue of their nature or size. During 2024 the Group separately disclosed a net charge on continuing operations before tax of £875.8m including £286.8m of amortisation of acquired intangibles resulting from IFRS 3.

The separate disclosure of these items allows a clearer understanding of the trading performance on a consistent and comparable basis, together with an understanding of the effect of non-recurring or large individual transactions upon the overall profitability of the Group.

The separately disclosed items have been included within the appropriate classifications in the consolidated income statement. Further details are given in Note 6.

Contingent liabilities

In the assessment of contingent liabilities, certain judgements are required to assess whether disclosure or provision is needed. If the criteria for recognising a provision are not met, but the outflow of resources with economic benefits is not remote, such obligations are disclosed in the notes to the consolidated financial statements as contingent liabilities. Contingent liabilities are only recognised as a provision if the obligations are more certain, i.e. the outflow of resources with economic benefits has become probable and their amount can be reliably estimated.

Estimates

Included within the financial statements are a number of areas where estimation is required.

Management believes that the areas most notable where estimates have been applied are:

- contingent consideration

- impairment (Note 11).

Contingent consideration

In the recognition of fair value of contingent consideration in business combinations and reassessment at each reporting date, management uses estimates in the inputs and assumptions based on the latest financial forecasts and other relevant information for the businesses acquired. Specifically, for the TAB NZ acquisition, the key estimates the Group has used are the post-tax discount rate and projected cashflows for the forecast period.

Impairment

An impairment review is performed for goodwill and other indefinite life assets on at least an annual basis. For all other non-current assets an impairment review is performed where there are indicators of impairment. This requires an estimation of the recoverable amount which is the higher of an asset's fair value less costs to sell and its value in use. Estimating a value in use amount requires management to make an estimate of the expected future cash flows from each cash-generating unit and to discount cash flows by a suitable discount rate in order to calculate the present value of those cash flows. Estimating an asset's fair value less costs to sell is determined using future cashflow and profit projections as well as industry observed multiples and publicly observed share prices for similar betting and gaming companies. See Note 11 for details on sensitivity analysis performed around these estimates.

Impairment losses are recognised in the consolidated income statement and during the current year, the Group has recognised an impairment charge of £476.4m primarily against the Group's New Zealand, BetCity, STS and Belgium businesses. See Note 11 for further details.

4.3 Other accounting policies

Business combinations

For business combinations, the Group estimates the fair value of the consideration transferred, which can include assumptions about the future business performance of the business acquired and an appropriate discount rate to determine the fair value of any contingent consideration. Certain judgements are also required to assess whether transfers of assets reflect payments for future service or elements of acquisition consideration.

The Group then estimates the fair value of assets acquired and liabilities assumed in the business combination. The area of most notable estimation within the fair value exercise relates to separately identifiable intangible assets including brands, customer lists and licences. These estimates also require inputs and assumptions to be applied within the relief from royalty calculation of fair values with the more significant assumptions relating to future earnings, customer attrition rates and discount rates. The Group engages external experts to support the valuation process, where appropriate. IFRS 3 'Business Combinations' allows the Group to recognise provisional fair values if the initial accounting for the business combination is incomplete.

The fair value of contingent consideration recognised in business combinations is reassessed at each reporting date, using updated inputs and assumptions based on the latest financial forecasts and other relevant information for the businesses acquired. Fair value movements and the unwinding of the discounting is recognised within the income statement as a separately disclosed item. See Note 6 for further details.

Goodwill on acquisition is initially measured at cost, being the excess of the cost of the business combination over the Group's interest in the net fair value of the separately identifiable assets, liabilities and contingent liabilities at the date of acquisition in accordance with IFRS 3 Business Combinations. Goodwill is not amortised but reviewed for impairment at the first reporting period after acquisition and then annually thereafter. As such it is stated at cost less any provision for impairment of value. Any impairment is recognised immediately in the consolidated income statement and is not subsequently reversed.

On acquisition, any goodwill acquired is allocated to cash-generating units for the purpose of impairment testing. Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposal is included in the carrying amount of the assets when determining the gain or loss on disposal. On the current year acquisitions, any non-controlling interests where put options are in place are recognised using the present access method where the Group assesses that the non-controlling shareholder has present access to the returns associated with their equity interests.

'Put' options over the equity of subsidiary companies

The potential cash payments related to put options issued by the Group over the equity of subsidiary companies are accounted for as financial liabilities. The amounts that may become payable under the option on exercise are initially recognised at the present value of the expected gross obligation with the corresponding entry being recognised in retained earnings. Such options are subsequently measured at amortised cost, using the effective interest method, in order to accrete the liability up to the amount payable under the option at the date at which it first becomes exercisable. The present value of the expected gross obligation is reassessed at the end of each reporting period and any changes are recorded in the income statement. In the event that an option expires unexercised, the liability is derecognised with a corresponding adjustment to retained earnings.

Intangible assets

Intangible assets acquired separately are capitalised at cost and those acquired as part of a business combination are capitalised separately from goodwill. The costs relating to internally generated intangible assets, principally software costs, are capitalised if the criteria for recognition as assets are met. Other expenditure is charged in the year in which the expenditure is incurred. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

The useful lives of these intangible assets are assessed to be either finite or indefinite. Indefinite lived assets are not amortised and are subject to an annual impairment review from the year of acquisition. Where amortisation is charged on assets with finite lives, this expense is taken to the consolidated income statement through the 'operating expenses, depreciation and amortisation' line item.

The useful lives applied to the Group's intangible assets are as follows:

Exclusive New Zealand licence	25-year duration of licence
Other licences	Lower of 15 years, or duration of licence
Software - purchased & internally capitalised costs	2-15 years
Trademarks & brand names	10-25 years, or indefinite life
Customer relationships	3-15 years

The useful lives of all intangible assets are reviewed at each financial period end. Impairment testing is performed annually for intangible assets which are not subject to systematic amortisation and where an indicator of impairment exists for all other intangible assets.

An intangible asset is derecognised on disposal, with any gain or loss arising (calculated as the difference between the net disposal proceeds and the carrying amount of the item) included in the consolidated income statement in the year of disposal.

Pensions and other post-employment benefits

The Group's defined benefit pension plan holds assets separately from the Group. The pension cost relating to the plan is assessed in accordance with the advice of independent qualified actuaries using the projected unit credit method.

Actuarial gains or losses are recognised in the consolidated statement of comprehensive income in the period in which they arise.

Any past service cost is recognised immediately. The retirement benefit asset recognised in the balance sheet represents the fair value of scheme assets less the value of the defined benefit obligations.

There is a degree of estimation involved in predicting the ultimate benefits payable under defined benefit pension arrangements. The pension scheme liabilities are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, mortality rates and future pension increases. Due to the long-term nature of this plan, such estimates are subject to uncertainty.

In making these estimates and assumptions, management considers advice provided by external advisers, such as actuaries. Where actual experience differs to these estimates, actuarial gains and losses are recognised directly in other comprehensive income. The Gala Coral Pension Plan has a net asset position when measured on an IAS 19 basis. Judgement is applied, based on legal, actuarial, and accounting guidance in IFRIC 14, regarding the amounts of net pension asset that is recognised in the consolidated balance sheet.

Although the Group anticipates that plan surplus will be utilised during the life of the plan to address member benefits, the Group recognises its pension surplus in full on the basis that there are no substantive restrictions on the return of residual plan assets in the event of a winding up of the plan after all member obligations have been met.

The Group's contributions to defined contribution scheme are charged to the consolidated income statement in the period to which the contributions relate.

Investments in joint ventures

A joint venture is an entity in which the Group holds an interest on a long-term basis, and which is jointly controlled by the Group and one or more other venturers under a contractual agreement.

Joint control exists only when decisions about the relevant activities require the unanimous consent of the parties that collectively control the arrangement.

The Group's share of results of joint ventures is included in the Group consolidated income statement using the equity method of accounting. Investments in joint ventures are carried in the Group consolidated balance sheet at cost plus post-acquisition changes in the Group's share of net assets of the entity less any impairment in value. The carrying value of investments in joint ventures includes acquired goodwill.

If the Group's share of losses in the joint venture equals or exceeds its investment in the joint venture, the Group does not recognise further losses, unless it has obligations to continue to provide financial support to the joint venture.

Investments in associates

Associates are those businesses in which the Group has a long-term interest and is able to exercise significant influence over the financial and operational policies but does not have control or joint control over those policies.

The Group's share of results of associates is included in the Group's consolidated income statement using the equity method of accounting. Investments in associates are carried in the Group's consolidated balance sheet at cost plus post-acquisition changes in the Group's share of net assets of the entity less any impairment in value. The carrying value of investments in associates includes acquired goodwill. If the Group's share of losses in the associate equals or exceed its investments in the associate, the Group does not recognise further losses, unless it has obligations to continue to provide financial support to the associate.

Property, plant and equipment

Land is stated at cost less any impairment in value.

Buildings, plant and equipment are stated at cost less accumulated depreciation and any impairment in value.

Depreciation is applied using the straight-line method to specific classes of asset to reduce them to their residual value over their estimated useful economic lives.

Land and buildings	Lower of 50 years, or estimated useful life of the building, or lease. Indefinite lives are attached to any freehold land held and therefore it is not depreciated.
Plant and equipment	3-5 years
Fixtures and fittings	3-10 years

ROU assets arising under lease contracts are depreciated over the lease term (as defined in IFRS 16) being the period to the expiry date of the lease, unless it is expected that a break clause will be exercised when the lease term is the period to the date of the break.

The carrying values of property, plant and equipment are reviewed for impairment where an indicator of impairment exists, being events or changes in circumstances indicating that the carrying values may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount.

The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An item of property, plant and equipment is derecognised upon disposal, with any gain or loss arising (calculated as the difference between the net disposal proceeds and the carrying amount of the item) included in the consolidated income statement in the year of disposal.

Leases

The Group has applied IFRS 16 only to those contracts that were previously identified as a lease under IAS 17 Leases; any contracts not previously identified as leases have not been reassessed for the purposes of adopting IFRS 16. Accordingly, the definition of a lease under IFRS 16 has only been applied to contracts entered into on or after 1 January 2019.

Leases, other than those with a lease period of less than one year at inception, or where the original cost of the asset acquired would be a negligible amount, are capitalised at inception at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.

ROU assets are included within property, plant and equipment at cost and depreciated over their estimated useful lives, which normally equates to the lives of the leases, after considering anticipated residual values.

ROU assets which are sub-leased to customers are classified as finance leases if the lease agreements transfer substantially all the risks and rewards of usage to the lessee. All other sub-leases are classified as operating leases. When assets are subject to finance leases, the present value of the sub-lease is recognised as a receivable, net of allowances for expected credit losses and the related ROU asset is derecognised. The difference between the gross receivable and the present value of the receivable is recognised as unearned finance lease income.

Finance lease interest income is recognised over the term of the lease using the net investment method (before tax) so as to give a constant rate of return on the net investment in sub-leases. Operating lease rental income is recognised on a straight-line basis over the life of the lease.

Cash and cash equivalents

Cash and cash equivalents consist of cash at bank and in hand, short-term deposits (including customer balances).

Financial assets

Financial assets are recognised when the Group becomes party to the contracts that give rise to them. The Group classifies financial assets at inception as financial assets at amortised cost, financial assets at fair value through profit or loss or financial assets at fair value through other comprehensive income.

Financial assets at amortised cost are recognised when the related business model's objective is to collect contractual cash flows which are solely principal and interest. On initial recognition, financial assets at amortised cost are measured at fair value net of transaction costs.

Trade receivables are generally accounted for at amortised cost. Expected credit losses are recognised for financial assets recorded at amortised cost, including trade receivables. Expected credit losses are calculated by using an appropriate probability of default, taking accounts of a range of possible future scenarios and applying this to the estimated exposure of the Group at the point of default.

Financial assets at fair value through profit or loss include derivative financial instruments. Financial assets through profit or loss are measured initially at fair value with transaction costs taken directly to the consolidated income statement. Subsequently, the fair values are remeasured, and gains and losses are recognised in the consolidated income statement.

Financial assets at fair value through other comprehensive income comprise equity investments that are designated as such on acquisition. These investments are measured initially at fair value. Subsequently, the fair values are remeasured, and gains and losses are recognised in the consolidated statement of comprehensive income.

Financial liabilities

Financial liabilities comprise trade and other payables, interest-bearing loans and borrowings, contingent consideration, ante-post bets (open betting positions) and derivative financial instruments. On initial recognition, financial liabilities are measured at fair value net of transaction costs where they are not categorised as financial liabilities at fair value. Financial liabilities measured at fair value include contingent consideration, derivative financial instruments, ante-post bets.

Financial liabilities at fair value are measured initially at fair value, with transaction costs taken directly to the consolidated income statement. Subsequently, the fair values are remeasured and gains and losses from changes therein are recognised in the consolidated income statement.

Trade and other payables are held at amortised cost and include amounts due to clients representing customer deposits and winnings, which are matched by an equal and opposite amount within cash and cash equivalents.

All interest-bearing loans and borrowings are initially recognised at fair value net of issue costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method.

All financial liabilities are recorded as cash flows from financing activities.

Derecognition of financial assets and liabilities

Financial assets are derecognised when the right to receive cash flows from the assets has expired or when the Group has transferred its contractual right to receive the cash flows from the financial assets or has assumed an obligation to pay the received cash flows in full without material delay to a third party, and either:

- substantially all the risks and rewards of ownership have been transferred; or

- substantially all the risks and rewards have neither been retained nor transferred but control is not retained.

Financial liabilities are derecognised when the obligation is discharged, cancelled or expires.

Derivative financial instruments

The Group uses derivative financial instruments such as cross currency swaps, foreign exchange swaps and interest rate swaps, to hedge its risks associated with interest rate and foreign currency fluctuations. Derivative financial instruments are recognised initially and subsequently at fair value. The gains or losses on re-measurement are taken to the consolidated income statement.

Derivative financial instruments are classified as assets where their fair value is positive, or as liabilities where their fair value is negative. Derivative assets and liabilities arising from different transactions are only offset if the transactions are with the same counterparty, a legal right of offset exists, and the parties intend to settle the cash flows on a net basis.

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the Directors' best estimate of the expenditure required to settle the obligation at the balance sheet date and are discounted to present value where the effect is material using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance expense.

Foreign currency translation

The presentational currency of Entain plc and the functional currencies of its UK subsidiaries is Pounds Sterling (£).

Other than Sterling the main functional currencies of subsidiaries are the Euro (€), the US Dollar ($), the Australian Dollar (AU$) and the New Zealand Dollar (NZD). At the reporting date, the assets and liabilities of non-sterling subsidiaries are translated into Pounds Sterling (£) at the rate of exchange ruling at the balance sheet date and their cash flows are translated at the weighted average exchange rates for the year. The post-tax exchange differences arising on the retranslation are taken directly to other comprehensive income.

Transactions in foreign currencies are initially recorded in the subsidiary's functional currency and translated at the foreign currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the foreign currency rate of exchange ruling at the balance sheet date.

All foreign currency translation differences are taken to the consolidated income statement. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined.

On disposal of a foreign entity, the deferred cumulative retranslation differences previously recognised in equity relating to that particular foreign entity are recognised in the consolidated income statement as part of the profit or loss on disposal.

The following exchange rates were used in 2024 and 2023:

	2024		2023
Currency	Average	Year end	Average	Year end
Euro (€)	1.179	1.206	1.149	1.151
US Dollar ($)	1.281	1.259	1.242	1.274
Australian Dollar (AU$)	1.931	2.014	1.873	1.866
NZ Dollars (NZD)	2.103	2.221	2.024	2.010

Income tax

Deferred tax is provided on all temporary differences at the balance sheet date, between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes except:

- on the initial recognition of goodwill;

- where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the tax profit;

- associated with investments in subsidiaries, joint ventures and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future; and

- where deferred tax assets or liabilities arise related to the global minimum level of taxation for multinational groups ("Pillar Two"), in accordance with the mandatory temporary recognition exception.

Deferred tax assets are recognised for all deductible temporary differences and carry forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and carry forward of unused tax assets and unused tax losses can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.

Income tax expenses are recognised within profit or loss except to the extent that they relate to items recognised in other comprehensive income or directly in equity, in which case they are recognised in other comprehensive income or directly in equity.

Revenues, expenses and assets are recognised net of the amount of sales tax except:

- where the sales tax incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

- receivables and payables are stated with the amount of sales tax included.

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated balance sheet.

Accounting for uncertain tax positions

The Group is subject to various forms of tax in a number of jurisdictions. Given the nature of the industry within which the Group operates, the tax and regulatory regimes are continuously changing and, as such, the Group is exposed to a small number of uncertain tax positions. Judgement is applied to adequately provide for uncertain tax positions where it is believed that it is more likely than not that an economic outflow will arise. In particular, judgement has been applied in the Group's accounting for Greek tax.

Equity instruments and dividends

Equity instruments issued by the Company are recorded at the fair value of proceeds received net of direct issue costs.

Final dividends proposed by the Board of Directors and unpaid at the year end are not recognised in the financial statements until they have been approved by shareholders at the Annual General Meeting. Interim dividends are recognised when paid.

Revenue

The Group reports the gains and losses on all betting and gaming activities as revenue, which is measured at the fair value of the consideration received or receivable from customers less free bets, promotions, bonuses and other fair value adjustments. Revenue is net of VAT/GST. The Group considers betting and gaming revenue to be out of the scope of IFRS 15 Revenue, and accounts for those revenues within the scope of IFRS 9 Financial Instruments.

For LBOs, on course betting, Core Telephone Betting, mobile betting and Digital businesses (including sportsbook, betting exchange, casino, games, other number bets), revenue represents gains and losses, being the amounts staked and fees received, less total payouts recognised on the settlement of the sporting event or casino gaming machine roulette or slots spin. Open betting positions ("ante-post") are carried at fair value and gains and losses arising on these positions are recognised in revenue.

The following forms of revenue, which are not significant in the context of Group revenue, are accounted for within the scope of IFRS 15 Revenue. Revenue from the online poker business reflects the net income (rake) earned from poker hands completed by the year end. In the case of the greyhound stadia, revenue represents income arising from the operation of the greyhound stadia in the year, including broadcasting rights, admission fees and sales of refreshments, net of VAT. Given the nature of these revenue streams they are not considered to be subject to judgement over the performance obligations, amount received or timing of recognition.

Finance expense and income

Finance expense and income arising on interest-bearing financial instruments carried at amortised cost are recognised in the consolidated income statement using the effective interest rate method. Finance expense includes the amortisation of fees that are an integral part of the effective finance cost of a financial instrument, including issue costs, and the amortisation of any other differences between the amount initially recognised and the redemption price. All finance expenses are recognised over the availability period.

Share-based payment transactions

Certain employees (including Directors) of the Group receive remuneration in the form of equity settled share-based payment transactions, whereby employees render services in exchange for shares or rights over shares (equity settled transactions).

The cost of equity settled transactions is measured by reference to the fair value at the date on which they are granted. In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Entain plc (market conditions).

The cost of equity settled transactions is recognised in the consolidated income statement, with a corresponding credit in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (vesting date). The cumulative expense recognised for equity settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the number of awards that, in the opinion of the Directors of the Group at that date, based on the best available estimate of the number of equity instruments, will ultimately vest.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vesting irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share as shown in Note 9.

4.4 Future accounting developments

The International Accounting Standards Board (IASB) has issued the following new or revised standards with an effective date for financial periods beginning on or after the dates disclosed below. These standards have not yet been adopted by the Group. The IASB has also issued a number of minor amendments to standards as part of their Annual Improvements to IFRS.

The Group is currently assessing the impact of the revised presentation and disclosure requirements for financial statements from IFRS 18. It is not anticipated that any of the other above unadopted new standards will have a material impact on the Group's results or financial position.

IAS 21	The Effects of Changes in Foreign Exchange Rates	Lack of Exchangeability	1 January 2025
FRS 7	Financial Instruments: Disclosures and IFRS 9 Financial Instruments	Amendments to the classification and measurement of financial instruments	1 January 2026
IFRS 18	Presentation and Disclosure in Financial Statements	New accounting standard	1 January 2027
IFRS 19	Subsidiaries without Public Accountability	New accounting standard	1 January 2027
IFRS 10 IAS 28	Consolidated Financial Statements Investments in Associates and Joint Ventures	Amendments regarding the sale or contribution of assets between an investor and its associate or joint venture	Date deferred
IFRS S1 and IFRS S2		General Requirements for Disclosure of Sustainability related Financial Information and Climate-related Disclosures	Awaiting UK endorsement

5 Segment information

The Group's operating segments are based on the reports reviewed by the Executive management team (which is collectively considered to be the Chief Operating Decision Maker ("CODM") to make strategic decisions and allocate resources.

IFRS 8 requires segment information to be presented on the same basis as that used by the CODM for assessing performance and allocating resources, and the Group's operating segments.

Following an internal review the focus of the business and the reports reviewed by the CODM have been amended. The disclosure of segment information has been amended to match the revised reporting structure. Comparative information has been amended to reflect this change.

The group results are now aggregated into the five reportable segments.

- UK&I: comprises betting, gaming and retail activities from online and mobile operations, and activities in the shop estates within Great Britain, Northern Ireland, Jersey, and Republic of Ireland.

- International: comprises betting, gaming and retail activities in the shop estates in the rest of the world apart from UK&I and CEE.

- CEE: comprises betting, gaming and retail activities in Croatia and Poland for brands SuperSport and STS.

- Corporate: includes costs associated with Group functions including Group executive, legal, Group finance, US joint venture, tax and treasury.

- New Opportunities: Reflects the now closed B2C offering under the unikrn brand.

The Executive management team of the Group have chosen to assess the performance of operating segments based on a measure of net revenue, EBITDA and operating profit with finance costs and taxation considered for the Group as a whole. Transfer prices between operating segments are on an arm's-length basis in a manner similar to transactions with third parties.

The segment results for the year ended 31 December were as follows:

2024	UK&I £m	International £m	CEE £m	Corporate £m	Elimination of internal revenue £m	Total Group £m
NGR¹	2,053.4	2,640.4	488.0	-	(19.9)	5,161.9
VAT/GST	(4.3)	(68.4)	-	-	-	(72.7)
Revenue	2,049.1	2,572.0	488.0	-	(19.9)	5,089.2
Gross Profit	1,395.8	1,443.4	278.9	-	-	3,118.1
Contribution²	1,169.4	1,062.0	249.1	-	-	2,480.5
Operating costs excluding marketing costs	(732.1)	(468.0)	(78.2)	(113.4)	-	(1,391.7)
Underlying EBITDA before separately disclosed items	437.3	594.0	170.9	(113.4)	-	1,088.8
Share based payments	(5.9)	(3.9)	-	(3.5)	-	(13.3)
Depreciation and Amortisation	(145.8)	(180.0)	(18.0)	(0.9)	-	(344.7)
Share of joint ventures and associates	-	(3.1)	-	(111.1)	-	(114.2)
Operating profit/(loss) before separately disclosed items	285.6	407.0	152.9	(228.9)	-	616.6
Separately disclosed items	(3.8)	(524.0)	(243.9)	(95.0)	-	(866.7)
Group operating profit/(loss)	281.8	(117.0)	(91.0)	(323.9)	-	(250.1)
Net finance expense						(107.3)
Loss before tax						(357.4)
Income tax						(103.6)
Loss for the year from continuing operations after tax						(461.0)
Loss for the year from discontinued operations after tax						-
Loss for the year after discontinued operations						(461.0)

1. Included within NGR are amounts of £53.7m (2023: £68.1m) in relation to online poker services and £21.9m (2023: £26.7m) arising from the operation of greyhound stadia recognised under IFRS 15 Revenue.

2. Contribution represents gross profit less marketing costs and is a key performance metric used by the Group.

2023	UK&I £m	International £m	CEE £m	Corporate £m	New Opportunities £m	Elimination of internal revenue £m	Total Group £m
NGR	2,047.7	2,491.1	301.1	-	-	(6.8)	4,833.1
VAT/GST	(4.0)	(59.5)	-	-	-	-	(63.5)
Revenue	2,043.7	2,431.6	301.1	-	-	(6.8)	4,769.6
Gross Profit	1,385.7	1,340.7	180.6	-	-	-	2,907.0
Contribution	1,176.4	942.9	167.2	-	(7.1)	-	2,279.4
Operating costs excluding marketing costs	(706.1)	(395.9)	(45.6)	(112.8)	(11.1)	-	(1,271.5)
Underlying EBITDA before separately disclosed items	470.3	547.0	121.6	(112.8)	(18.2)	-	1,007.9
Share based payments	(7.8)	(6.0)	-	(7.9)	-	-	(21.7)
Depreciation and Amortisation	(138.0)	(152.2)	(7.8)	(0.8)	(2.7)	-	(301.5)
Share of joint ventures and associates	-	(1.5)	-	(41.4)	-	-	(42.9)
Operating profit/(loss) before separately disclosed items	324.5	387.3	113.8	(162.9)	(20.9)	-	641.8
Separately disclosed items	(14.3)	(435.5)	(111.2)	(689.2)	(36.3)	-	(1,286.5)
Group operating profit/(loss)	310.2	(48.2)	2.6	(852.1)	(57.2)		(644.7)
Net finance expense							(197.9)
Loss before tax							(842.6)
Income tax							(36.1)
Loss for the year from continuing operations after tax							(878.7)
Loss for the year from discontinued operations after tax							(57.8)
Loss for the year after discontinued operations							(936.5)

Assets and liabilities information is reported internally in total and not by reportable segment and, accordingly, no information is provided in this note on assets and liabilities split by reportable segment.

Geographical information

Revenue by destination and non-current assets on a geographical basis for the Group, are as follows:

		2024		2023
	Revenue £m	Non-current assets3 £m	Revenue £m	Non-current assets3 £m
United Kingdom and Ireland	2,048.5	2,855.6	2,035.3	3,111.9
Australia and New Zealand	573.9	1,160.7	515.1	1,475.4
Italy	518.1	505.8	517.4	512.2
Rest of Europe¹	1,382.0	3,506.7	1,361.9	3,895.1
Rest of the world²	566.7	263.0	339.9	293.8
Total	5,089.2	8,291.8	4,769.6	9,288.4

1. Rest of Europe is predominantly driven by markets in Croatia, Poland, Belgium, Netherlands and Georgia.

2. Rest of the world is predominantly driven by the markets in Brazil and Canada.

3. Non-current assets excluding derivative financial instruments, deferred tax assets and retirement benefit assets.

6 Separately disclosed items

	£m	2024 Tax impact £m	£m	2023 Tax impact £m
Impairment loss¹	476.4	-	289.0	-
Amortisation of acquired intangibles²	286.8	(23.6)	254.6	(41.6)
Restructuring costs³	49.6	(10.8)	49.7	(9.6)
Movement in fair value of contingent consideration and put option⁴	43.3	(24.1)	71.8	(15.5)
Financing⁵	9.1	-	1.0	-
Legal and onerous contract provisions⁶	6.7	(2.5)	17.6	(3.0)
Legal settlement⁷	3.9	-	585.0	-
Tax/one-off legislative impacts⁸	-	25.7	-	-
Corporate transaction costs⁹	-	-	17.8	-
Loss on disposal of property, plant and equipment¹⁰	-	-	1.0	-
Separately disclosed items for the year from continuing operations	875.8	(35.3)	1,287.5	(69.7)
Separately disclosed items for the year from discontinued operations	-	-	57.8	-
Total	875.8	(35.3)	1,345.3	(69.7)
Separately disclosed items for the year after tax	840.5		1,275.6

(1) Relates to non-cash impairments with the current year charge recorded against the Group's Tab New Zealand business of £142.5m, the BetCity business of £113.1m, STS of £75.9m, Belgium of £76.3m and an impairment of the Group's ROI retail portfolio of £8.7m. Further details are provided in Note 11. There has also been a write down of £18.5m of certain New Zealand assets following the platform migration and a number of smaller impairments against other assets that the Group no longer intends to use including shop closures.

(2) Amortisation charges in relation to acquired intangible assets arising from acquisitions. The majority of the charge is from recent acquisitions, including Enlabs, Bet.pt, Avid, SuperSport, BetCity, STS, and Tab NZ.

(3) Costs associated with the Group's restructuring programs, including Project Romer.

(4) Reflects the movement in the fair value of contingent consideration and put option arrangements on recent acquisitions as well as the associated discount unwind.

(5) Non-cash loss on Group debt modification. Prior year balance relates to fees incurred in financing activities. The category has reduced in value since the half year as a result of the issue costs relating to the 2024 refinance now being capitalised.

(6) Costs relating primarily to our commitments to the DPA and associated shareholder litigation, as well as other legal costs associated with disposed businesses.

(7) During the prior year, Entain plc entered into a Deferred Prosecution Agreement ("DPA") with the Crown Prosecution Service ("CPS") in relation to historical conduct of the Group, thereby resolving the HM Revenue & Customs ("HMRC") investigation into the Group. As a result of the agreement reached, the Group recognised a £585.0m discounted liability relating to amounts it has agreed to pay in relation to the disgorgement of profits, charitable donations and contributions to CPS costs. The current year charge reflects discount unwind on the original discounted liability. The liability is being paid over four years.

(8) During December 2024 tax legislation was enacted in Gibraltar to amend a previous enhanced tax deduction for qualifying business marketing and promotion costs, which had applied for the two years ended 31 December 2021 and 31 December 2022. The amendment has retrospective effect to cut short by a year the period to which the incentive applied.

(9) Transaction costs associated with the prior year M&A activity, including the acquisition of 365Scores, NZ Tab, STS and Angstrom.

(10) Relates to the loss on disposal of certain assets within the Group's retail estates.

The items above reflect incomes and expenditures which are either exceptional in nature or size or are associated with the amortisation of acquired intangibles. The Directors believe that each of these items warrants separate disclosure as they do not form part of the day-to-day underlying trade of the Group.

7 Finance expense and income

	2024 £m	2023 £m
Interest on term loans, bonds and bank facilities	(264.6)	(229.2)
Interest on lease liabilities¹	(15.7)	(12.6)
Financing costs (Note 6)	(9.1)	(1.0)
Total finance expense	(289.4)	(242.8)

Interest receivable	16.1	12.4
Gains/(losses) arising on financial derivatives	145.0	(90.6)
Gains arising on foreign exchange on debt instruments	21.0	123.1
Net finance expense	(107.3)	(197.9)

1. Interest on lease liabilities of £15.7m (2023: £12.6m) is net of £0.2m of sub-let interest receivable (2023: £0.2m).

8 Dividends

Pence per share	2024 pence	2023 pence	2024 Shares in issue number	2023 Shares in issue number
2022 second interim dividend paid	-	8.5	-	588.8
2023 interim dividend paid	-	8.9	-	638.8
2023 second interim dividend paid	8.9	n/a	639.0	n/a
2024 interim dividend paid	9.3	n/a	639.3	n/a

A second interim dividend of 9.3p (2023: 8.9p) per share, amounting to £59.5m (2023: £56.9m) in respect of the year ended 31 December 2024, was proposed by the Directors on 6 March 2025. The estimated total amount payable in respect of the final dividend is based on the expected number of shares in issue on 6 March 2025. There are no income tax implications for the Group and Company arising from the proposed second interim dividend.

A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the Company's shares. The last date for receipt of DRIP elections is 31 March 2025.

The 2023 second interim dividend of 8.9p per share (£56.9m) was paid on 26 April 2024. The 2024 interim dividend of 9.3p per share (£59.4m) was paid on 20 September 2024.

In the year, the Group paid a dividend totalling £12.5m to non-controlling interests (2023: £7.4m).

9 Earnings per share

Basic earnings per share has been calculated by dividing the loss for the year attributable to shareholders of the Company of £452.7m (2023: £928.6m loss) by the weighted average number of shares in issue during the year of 639.1m (2023: 616.0m).

The dilutive effects of share options and contingently issuable shares are not considered when calculating the diluted loss per share.

At 31 December 2024, there were 639.3m €0.01 ordinary shares in issue.

The calculation of adjusted earnings per share which removes separately disclosed items and foreign exchange gains and losses arising on financial instruments has also been disclosed as it provides a better understanding of the underlying performance of the Group. Separately disclosed items are defined in Note 4 and disclosed in Note 6.

Total earnings per share

Weighted average number of shares (millions)	2024	2023
Shares for basic earnings per share	639.1	616.0
Potentially dilutive share options and contingently issuable shares	5.2	1.5
Shares for diluted earnings per share	644.3	617.5

Total profit	2024 £m	2023 £m
Loss attributable to shareholders	(452.7)	(928.6)
- from continuing operations	(452.7)	(870.8)
- from discontinued operations	-	(57.8)
(Gains)/losses arising from financial instruments	(145.0)	90.6
Gains arising from foreign exchange debt instruments	(21.0)	(123.1)
Associated tax charge on gains arising from financial instruments and foreign exchange debt instruments	23.1	1.1
Separately disclosed items net of tax (Note 6)	788.3	1,232.7
Adjusted profit attributable to shareholders	192.7	272.7
- from continuing operations	192.7	272.7
- from discontinued operations	-	-

	Standard earnings per share		Adjusted earnings per share
Earnings per share (pence)	2024	2023	2024	2023
Basic earnings per share
- from continuing operations	(70.8)	(141.4)	30.2	44.3
- from discontinued operations	-	(9.3)	-	-
From (loss)/profit for the year	(70.8)	(150.7)	30.2	44.3
Diluted earnings per share
- from continuing operations	(70.8)	(141.4)	29.9	44.2
- from discontinued operations	-	(9.3)	-	-
From (loss)/profit for the year	(70.8)	(150.7)	29.9	44.2

The earnings per share presented above is inclusive of the performance from the US joint venture BetMGM. Adjusting for the removal of the BetMGM performance would result in a basic adjusted earnings per share of 47.3p (2023: 51.1p) and a diluted adjusted earnings per share of 46.9p (2023: 51.0p) from continuing operations.

10 Goodwill and intangible assets

	Goodwill	Licences	Software	Customer relationships	Trade-marks & brand names	Total
	£m	£m	£m	£m	£m	£m
Cost
At 1 January 2023	4,270.1	205.4	772.7	1,241.0	2,269.4	8,758.6
Exchange adjustment	(68.2)	11.8	(12.7)	(12.3)	(17.4)	(98.8)
Additions	-	-	191.5	-	-	191.5
Additions from business combinations	1,067.5	747.8	49.8	275.5	439.5	2,580.1
Disposals	-	-	(2.9)	-	-	(2.9)
At 31 December 2023	5,269.4	965.0	998.4	1,504.2	2,691.5	11,428.5
Exchange adjustment	(194.9)	(80.7)	(28.6)	(43.2)	(66.1)	(413.5)
Additions	-	18.3	185.6	-	-	203.9
Disposals	-	-	(2.7)	-	-	(2.7)
Reclassifications	-	-	2.0	-	-	2.0
At 31 December 2024	5,074.5	902.6	1,154.7	1,461.0	2,625.4	11,218.2

Accumulated amortisation and impairment
At 1 January 2023	289.2	26.3	520.8	1,018.0	247.2	2,101.5
Exchange adjustment	(13.3)	(0.1)	(9.1)	(13.8)	(7.3)	(43.6)
Amortisation charge	-	45.3	138.0	141.4	90.4	415.1
Impairment charge	277.5	-	2.2	0.5	2.1	282.3
Disposals	-	-	(2.9)	-	-	(2.9)
At 31 December 2023	553.4	71.5	649.0	1,146.1	332.4	2,752.4
Exchange adjustment	(34.3)	(5.5)	(18.3)	(33.1)	(19.7)	(110.9)
Amortisation charge	-	48.9	167.4	165.6	103.5	485.4
Impairment charge	416.5	-	19.2	-	-	435.7
Disposals	-	-	(2.7)	-	-	(2.7)
At 31 December 2024	935.6	114.9	814.6	1,278.6	416.2	3,559.9

Net book value
At 31 December 2023	4,716.0	893.5	349.4	358.1	2,359.1	8,676.1
At 31 December 2024	4,138.9	787.7	340.1	182.4	2,209.2	7,658.3

At 31 December 2024 the Group had not entered into contractual commitments for the acquisition of any intangible assets (2023: £nil).

Included within trade-marks and brand names are £1,398.4m (2023: £1,398.4m) of intangible assets considered to have indefinite lives. These assets relate to the UK Ladbrokes and Coral brands which are considered to have indefinite durability that can be demonstrated, and their value can be readily measured. The brands operate in longstanding and profitable market sectors. The Group has a strong position in the market and there are barriers to entry due to the requirement to demonstrate that the applicant is a fit and proper person with the 'know-how' required to run such operations.

Goodwill reflects the value by which consideration exceeds the fair value of net assets acquired as part of a business combination including the deferred tax liability arising on acquisitions.

Licences comprise the cost of acquired betting shop and online licences, as well as licences acquired as part of acquisitions.

Software relates to the cost of acquired software, through purchase or business combination, and the capitalisation of internally developed software.

Customer relationships, trade-marks and brand names relate to the fair value of customer lists, trade-marks and brand names acquired as part of business combinations, primarily relating to the bwin, Ladbrokes Coral Group, Enlabs, Sport Interaction, SuperSport, BetCity, 365Scores, STS and Tab NZ businesses.

11 Impairment testing of goodwill and indefinite life intangible assets

An impairment loss is recognised for any amount by which an asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).

Within UK, Eurobet Retail, Belgium Retail and Tab NZ Retail, the cash-generating units ("CGUs") are generally an individual Licensed Betting Office ("LBO") and, therefore, impairment is first assessed at this level for licences (intangibles) and property, plant and equipment, with any impairment arising booked to licences and property, plant and equipment on a pro-rata basis. Since goodwill and brand names have not been historically allocated to individual LBOs, a secondary assessment is then made to compare the carrying value of the segment against the recoverable amount with any additional impairment then taken against goodwill first.

For International the CGU is defined as websites hosted by proprietary platforms based in non-UK countries and for all other segments the CGU is the relevant geographical location or business unit. Any impairments are made firstly to goodwill, next to any capitalised intangible asset and then finally to property, plant and equipment. The expected cash flows generated by the assets are discounted using appropriate discount rates that reflect the time value of money and risks associated with the group of assets.

For both tangible and intangible assets, the future cash flows are based on the forecasts and budgets of the CGU or business discounted to reflect time value of money. The key assumptions within the UK and European Retail budgets are OTC wagers (customer visits and spend per visit), the average number of machines per shop, gross win per shop per week, salary increases, the potential impact of the shop closures and the fixed costs of the LBOs. The key assumptions within the budgets for online businesses are the number of active customers, net revenue per head, win percentage, marketing spend, revenue shares and operating costs. All forecasts take into account the impact of the Group's commitment to be Net Zero by 2035 as well as the impact of climate change.

The value in use calculations use cash flows based on detailed, Board-approved, financial budgets prepared by management covering a three-year period which have been risk adjusted for factors specific to each cash generating unit. These forecasts have been extrapolated over years 4 to 8 representing a declining growth curve from year 3 until the long-term forecast growth rate is reached. The growth rates used from years 4 to 8 range from 0% to 10%. From year 9 onwards long-term growth rates used are between 0% and 2% (2023: between 0% and 2%) and are based on the long-term GDP growth rate of the countries in which the relevant CGUs operate or the relevant outlook for the business. An eight-year horizon is considered appropriate based on the Group's history of underlying profit as well as ensuring there is an appropriate decline to long-term growth rates from those growth rates currently observed in our key markets. A 0% growth rate has been used for the UK Retail operating segment. All key assumptions used in the value in use calculations reflect the Group's past experience unless a relevant external source of information is available. Whilst the same approach is adopted for Tab NZ impairment reviews, the value-in-use is assessed over the 25-year life of the licence rather than into perpetuity.

The discount rate calculation is based on the specific circumstances with reference to the WACC and risk factors expected in the industry in which the Group operates.

The pre-tax discount rates used and the associated carrying value of goodwill by CGU is as follows:

Goodwill	2024 %	2023 %	2024 £m	2023 £m
UK Retail	12.8	12.6	76.4	76.4
UK Digital	11.3	11.1	933.6	952.6
International	11.6	11.1	1,315.4	1,345.7
Australia	13.7	13.5	134.5	145.1
Belgium Retail	12.8	12.6	-	53.0
Belgium Digital	12.8	12.6	11.5	39.0
Eurobet Retail	13.5	13.3	74.9	78.5
Eurobet Digital	13.5	13.3	294.2	308.2
Enlabs	12.0	11.8	196.0	205.3
BetCity	13.0	12.7	77.8	200.1
SuperSport	11.7	11.5	503.6	527.8
STS	13.6	11.7	301.8	389.2
365Scores	11.3	12.3	88.0	87.0
Tab NZ Retail	14.2	11.1	-	20.2
Tab NZ Digital	14.2	11.1	89.0	235.3
ROI	11.3	11.1	6.2	15.7
Crystalbet	11.3	11.1	36.0	36.9
			4,138.9	4,716.0

It is not practical or material to disclose the carrying value of individual licences by LBO.

Following an internal review the focus of the business and the reports reviewed by the CODM have been amended. The disclosure of segment information has been amended to match the revised reporting structure of the Group. As such, the CGU structure has changed to ensure that no CGU is larger than a segment.

Impairment recognised during the year

Impairments of intangible assets and property, plant and equipment are recognised as separately disclosed items within operating expenses (see note 6).

Tab New Zealand

During the year, the Group recorded a non-cash impairment charge of £142.5m against Tab New Zealand (Digital CGU £124.0m, Retail CGU £18.5m) which arose as a result of the outlook for the New Zealand business deteriorating versus the position 12 months ago. Whilst this is in part due to the delay in the introduction of the legislative net (geo-blocking), forecast underlying growth has also reduced.

STS Poland

Our Polish business continues to face aggressive competitor activity. Whilst initial views were that the intensity of competition would reduce as the year progressed and normalise ahead of 2025, we are yet to see any easing. As such, the outlook for the Polish business for 2025 and beyond has been reduced. This reduction has led to a non-cash impairment charge of £75.9m against the STS CGU.

BetCity

With ongoing changes in regulation in the Netherlands and the introduction of deposit limits, the most recent of which was on 1st October 2024, and a higher gaming tax rate, the outlook for the BetCity business has weakened over the last 12 months. This reduction in the outlook has led to a non-cash impairment charge of £113.1m against the BetCity CGU.

Belgium

During the year, the Group recorded a non-cash impairment charge of £76.3m against Belgium (Retail CGU £50.5m, Digital CGU £25.8m). This was driven by ongoing heavy regulation in Retail and the decline in online casino NGR as a result of the wallet decoupling with bwin.be.

Republic of Ireland

Continued challenges remain against our Retail estate in ROI as a result of a reduced outlook for this market. During the year, the Group recorded a non-cash impairment charge of £8.7m against the ROI CGU.

Sensitivity analysis

Sensitivity analysis for all CGUs where an impairment charge has been recognised in the year is given below, with the exception of ROI as the remaining assets associated with that CGU are not material. For all other CGUs, no reasonable change in assumptions would cause an additional material impairment.

Impairment	5% EBITDA £	0.5% discount rate £ ££
Tab NZ	45.6	38.6
STS	30.9	28.3
BetCity	8.6	9.7
Belgium	6.8	0.9
	91.9	77.5

Impairment recognised during the prior year

Australia

During the prior year, the Group recorded a non-cash impairment charge of £190.0m against the Group's Australia CGU. The charge was a result of the impact of ongoing increases in the rate of Point of Consumption tax across certain states and a forecast decline in Australian revenues in 2024 as a result of a reduced market outlook.

Whilst our Australian business continued to be profitable and strategically important, market conditions and tax headwinds reduced the value in use of the business resulting in the impairment charge. Post the annualisation of the tax increases and stabilisation of local market conditions, we expect our Australian business to return to growth.

Unikrn

During the prior year, the Group took the decision to close its B2C eSports business operating under the Unikrn brand, in favour of developing a leading eSports proposition on existing labels. As a result of the decision to turn off its B2C operations, the Group recorded a £43.2m impairment of goodwill and £1.1m impairment of trade-marks and brands associated with the Unikrn operation during the prior year within the New Opportunities segment.

Impala

The Group also took the decision during 2023 to close its B2C operations in Zambia and Kenya, operations that were run out of the previously acquired African subsidiary. As a result of the decision to close these operations and focus resources to drive growth in other markets, the Group recorded an impairment against the value of assets carried against this business. The resulting impairment was booked against goodwill of £29.9m, and against software of £4.0m within the International segment.

In addition, an impairment charge of £11.0m was recognised during the prior year against our Retail estate in ROI as a result of a reduced outlook for this market, and £5.0m against Totolotek following its closure post the STS acquisition.

12 Property, plant and equipment

	Land and buildings	Plant and equipment	Fixtures and fittings	Leased assets	Total
	£m	£m	£m	£m	£m
Cost
At 1 January 2023	40.6	141.2	237.6	603.1	1,022.5
Exchange adjustment	(0.3)	(2.1)	(3.5)	(1.4)	(7.3)
Additions	18.0	27.0	45.9	45.6	136.5
Additions from business combinations	4.9	8.1	2.2	26.9	42.1
Disposals	(4.5)	(6.7)	(5.7)	(49.8)	(66.7)
Reclassification	-	0.9	(0.9)	-	-
At 31 December 2023	58.7	168.4	275.6	624.4	1,127.1
Exchange adjustment	(2.0)	(6.7)	(11.7)	(7.3)	(27.7)
Additions	5.5	30.1	49.0	132.4	217.0
Disposals	(1.6)	(4.2)	(16.7)	(202.0)	(224.5)
Reclassification	(0.3)	(15.4)	15.9	(2.3)	(2.1)
At 31 December 2024	60.3	172.2	312.1	545.2	1,089.8

Accumulated depreciation
At 1 January 2023	12.9	44.6	87.7	370.1	515.3
Exchange adjustment	(0.2)	(1.5)	(2.0)	(0.6)	(4.3)
Depreciation charge	13.7	29.4	36.6	61.3	141.0
Impairment	0.9	0.7	0.4	4.7	6.7
Disposals	(4.5)	(6.0)	(5.1)	(49.4)	(65.0)
Reclassification	-	(0.2)	0.2	-	-
At 31 December 2023	22.8	67.0	117.8	386.1	593.7
Exchange adjustment	(1.2)	(2.2)	(11.7)	(2.9)	(18.0)
Depreciation charge	5.9	33.0	44.0	63.2	146.1
Disposals	(1.6)	(4.2)	(16.7)	(202.0)	(224.5)
Impairment	1.2	1.3	4.8	11.5	18.8
Reclassification	2.1	(0.6)	(1.6)	-	(0.1)
At 31 December 2024	29.2	94.3	136.6	255.9	516.0

Net book value
At 31 December 2023	35.9	101.4	157.8	238.3	533.4
At 31 December 2024	31.1	77.9	175.5	289.3	573.8

At 31 December 2024, the Group had not entered into contractual commitments for the acquisition of any property, plant and equipment (2023: £nil).

Included within fixtures, fittings and equipment are assets in the course of construction which are not being depreciated of £26.4m (2023: £17.1m), relating predominantly to self-service betting terminals and the new point of sale system in Retail stores.

An impairment charge of £18.8m (2023: £6.7m) has been made against closed retail shops and office buildings included within leased assets in the year. See Notes 6 and 11 for further details.

Analysis of leased assets:

	Land and buildings	Plant and equipment	Total
	£m	£m	£m
Cost
At 1 January 2023	593.2	9.9	603.1
Exchange adjustment	(1.3)	(0.1)	(1.4)
Additions	32.8	12.8	45.6
Additions from business combinations	26.0	0.9	26.9
Disposals	(49.8)	-	(49.8)
At 31 December 2023	600.9	23.5	624.4
Exchange adjustment	(6.9)	(0.4)	(7.3)
Additions	93.7	38.7	132.4
Disposals	(192.5)	(9.5)	(202.0)
Reclassifications	(4.4)	2.1	(2.3)
At 31 December 2024	490.8	54.4	545.2

Accumulated depreciation
At 1 January 2023	361.5	8.6	370.1
Exchange adjustment	(0.6)	-	(0.6)
Depreciation charge	59.0	2.3	61.3
Impairment	4.7	-	4.7
Disposals	(49.4)	-	(49.4)
At 31 December 2023	375.2	10.9	386.1
Exchange adjustment	(2.8)	(0.1)	(2.9)
Depreciation charge	58.9	4.3	63.2
Disposals	(192.5)	(9.5)	(202.0)
Impairment	11.1	0.4	11.5
At 31 December 2024	249.9	6.0	255.9

Net book value
At 31 December 2023	225.7	12.6	238.3
At 31 December 2024	240.9	48.4	289.3

13 Net debt

The components of the Group's adjusted net debt are as follows:

	2024 £m	2023 £m
Current assets
Cash and short-term deposits	588.9	400.6
Current liabilities
Interest-bearing loans and borrowings	(25.3)	(319.2)
Non-current liabilities
Interest-bearing loans and borrowings	(3,605.9)	(3,038.8)
Net debt	(3,042.3)	(2,957.4)

Cash held on behalf of customers	(196.6)	(196.8)
Fair value swaps held against debt instruments (derivative financial asset/(liability))	66.8	(85.6)
Deposits	20.7	48.8
Balances held with payment service providers	136.8	176.0
Sub-total	(3,014.6)	(3,015.0)

Lease liabilities	(324.5)	(275.9)
Adjusted net debt including lease liabilities	(3,339.1)	(3,290.9)

Cash held on behalf of customers represents the outstanding balance due to customers in respect of their online gaming wallets.

14 Notes to the statement of cash flows

Reconciliation of loss to net cash inflow from operating activities:

	2024 £m	2023 £m
Loss before tax from continuing operations	(357.4)	(842.6)
Net finance expense	107.3	197.9
Loss before tax and net finance expense from continuing operations	(250.1)	(644.7)
Loss before tax and net finance expense from discontinued operations	-	(57.8)
Loss before tax and net finance expense including discontinued operations	(250.1)	(702.5)
Adjustments for:
Impairment	457.4	289.0
Loss on disposal	-	1.0
Depreciation of property, plant and equipment	146.4	141.0
Amortisation of intangible assets	485.4	415.1
Share-based payments charge	13.3	23.6
(Increase)/decrease in trade and other receivables	(78.2)	42.2
Increase in other financial liabilities	50.7	62.7
Increase in trade and other payables	36.9	506.0
Increase/(decrease) in provisions	12.6	(1.9)
Share of results from joint venture and associate	114.2	42.9
Other	(12.4)	(9.1)
Cash generated by operations	976.2	810.0

15 Commitments and contingencies

AUSTRAC

On 16 December 2024, the Australian Transaction Reports and Analysis Centre ("AUSTRAC") commenced civil penalty proceedings in the Federal Court of Australia against Entain Group Pty Ltd, the Group's subsidiary in Australia ("Entain Australia").

The proceedings against Entain Australia relate to alleged contraventions of the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the "Act"), identified as part of AUSTRAC's enforcement investigation of Entain Australia (the "Investigation"). As the Group has previously disclosed, the Investigation was announced by AUSTRAC in September 2022. The Investigation has now concluded, with the only outcome being the civil penalty proceedings.

A Statement of Claim regarding the proceedings has not been issued as at the date of approval of the annual report and accounts and a provision has not been recognised as it is not possible to reliably estimate the quantum or timing of any fine. Previous penalties in AUSTRAC proceedings in the gaming sector have been material, ranging from AU$45m to AU$450. Therefore, it is possible that the proceedings may result in a penalty being levied which could potentially be material. All cases are different and there is inherent risk in drawing conclusions from previously settled cases. The level of any penalty is ultimately a matter for the Federal Court of Australia.

It is expected that the Statement of Claim will be issued in mid-March and, in other cases settled with AUSTRAC, it has taken between 10 and 20 months after the issuance of the Statement of Claim for the proceedings to conclude. Another set of proceedings against another entity has been ongoing for 26 months and is still unresolved. It is therefore difficult to predict how long the proceedings against Entain Australia will last.

Greek Tax

In November 2021, the Athens Administrative Court of Appeal ruled in favour of the Group's appeal against the tax assessments raised by the Greek tax authorities in respect of alleged unpaid taxes and penalties for the years 2010 and 2011. In February 2022, the Greek tax authorities appealed against the judgements to the Greek Supreme Administrative Court. While the Group expects to be successful in defending the appeals by the Greek tax authorities, should the Greek Supreme Administrative Court rule in favour of the Greek tax authorities, then the Group could become liable for the full 2010 and 2011 assessments plus interest, an estimated total of €300m at 31 December 2024.

The appeals were due to be heard before the Greek Supreme Administrative Court at various dates in 2024 but have been deferred to 30 April 2025 and 14 May 2025.

Shareholder Litigation

On 30 November 2024 and 2 December 2024, Entain plc was served with two claims brought by two groups of shareholders which arise from the circumstances and disclosures relating to GVC's legacy Turkish-facing business and the investigation by HMRC into those operations. The investigation was concluded upon the entry by Entain plc into a Deferred Prosecution Agreement with the UK Crown Prosecution Service on 5 December 2023.

Provision has not been made against these claims as they are not considered probable to result in an economic outflow, nor is it possible to estimate the likely quantum and timing of any possible outflow given their early stage. Consistent with any claims of this nature, there is inherent uncertainty in the final outcome which could be material.

Player Claims

Germany

As with other operators in the industry, companies in the Group face claims initiated in Germany by German customers for a period relating to before the Group held a German local gambling licence. In brief, the claimants seek the return of their gambling losses alleging that the relevant underlying contracts between the claimant and the applicable Group companies are not enforceable due to the companies not holding a local gambling licence at the relevant time. The Group's position is that it held Gibraltarian and Maltese licences at the relevant time that entitled it to offer its services into Germany in compliance with EU law. In addition, certain German Courts have established that the contracts are enforceable.

The claims made against the Group amount to €101.8m (£84.4m) as at 31 December 2024. The Group has not made any provision for these claims as it does not consider that the law is established in this area. Consequently, these claims are not considered to result in a probable economic outflow and, as such, no provision has been made in the Income Statement. Consistent with any claims of this nature, there can be uncertainty surrounding the final outcome.

Austria

As with other operators in the industry, companies in the Group face claims initiated in Austria by Austrian customers. In brief, the claimants seek the return of their casino and poker losses, alleging that the relevant underlying contracts between the claimant and the applicable Group companies are not enforceable because the companies do not hold a local gambling licence. The Group's position is that it holds a Maltese licence that entitles it to offer its services into Austria and that it is compliant with EU law. The Group's approach is to manage the claims against it as efficiently as possible, including entering into settlements where appropriate. The cost of these settlements are not material to the Group.

Bet MGM loan guarantee

BetMGM, the Group's joint venture, took out a $150m revolving credit facility in December 2024. It was secured and undrawn as at the year end. 50% of this facility is guaranteed by Entain Group. The likelihood of this being called upon is considered remote.

16 Subsequent events

On 11th February 2025 it was announced by mutual agreement that Gavin Isaacs, Chief Executive Officer, was stepping down with immediate effect.

Stella David, who was in the role of Entain's non-executive Chair, again assumed the role of Chief Executive Officer (CEO) on an interim basis until a permanent replacement has been found. Pierre Bouchut, who was in the role of Senior Independent Director, became non-executive Chair on an interim basis.

ADDITIONAL INFORMATION

This information has been provided in order to assist year on year comparability with previously reported results which, prior to the current year re-segmentation, were analysed as Online and Retail.

Online

		Reported results¹
Year ended 31 December	2024		2023	Change	CC²
	£m		£m	%	%
Sports wagers	14,392.6		13,721.3	5%	8%

Sports margin	14.7%		13.7%	1.0pp	1.0pp

Sports NGR	1,788.2		1,530.8	17%	20%
Gaming NGR	1,851.5		1,818.0	2%	4%
B2B NGR	80.6		57.9	39%	0%
Total NGR	3,720.3		3,406.7	9%	12%
VAT/GST	(67.3)		(59.9)	(12%)	(16%)
Revenue	3,653.0		3,346.8	9%	12%

Gross profit	2,174.0		1,966.6	11%

Contribution	1,551.9		1,356.9	14%
Contribution margin	41.7%		39.8%	1.9pp

Operating costs	(610.9)		(510.5)	(20%)

Underlying EBITDA³	941.0		846.4	11%

Share based payments	(8.0)		(11.4)	30%
Underlying depreciation and amortisation	(208.1)		(162.9)	(28%)
Share of JV (loss)/income	(3.1)		(1.5)	(107%)

Underlying operating profit⁴	721.8		670.6	8%

Retail

The Retail business is made up of our Retail estates in the UK, Italy, Belgium, Croatia, Poland, New Zealand, Australia, Baltics and Republic of Ireland.

			Reported results¹
Year ended 31 December	2024			2023		Change			CC²
	£m			£m		%			%
Sports wagers	4,492.8			4,356.4		3%			4%

Sports margin	19.5%			18.9%		(0.6pp)			(0.6pp)

Sports NGR/Revenue	889.0			839.9		6%			7%
Machines NGR/Revenue	572.5			593.3		(4%)			(3%)
NGR		1,461.5			1,433.2		2%	3%
VAT/GST		(5.4)			(3.6)		(50%)	(54%)
Revenue	1,456.1			1,429.6		2%			3%

Gross profit	944.1			940.4		(5%)

Contribution	928.6			929.6		0%
Contribution margin	63.5%			64.9%		(1.4pp)

Operating costs	(667.4)			(637.1)		(5%)

Underlying EBITDA³	261.2			292.5		(11%)

Share based payments	(1.8)			(2.4)		25%
Underlying depreciation and amortisation	(135.7)			(135.1)		0%
Share of JV income	-			-		-
Underlying operating profit⁴	123.7			155.0		(20%)

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1 Corporate information

2 Basis of preparation

3 Changes in accounting policies

4 Summary of significant accounting policies

4.1 Basis of consolidation

4.2 Critical accounting estimates and judgements

Judgements

Separately disclosed items

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Estimates

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4.4 Future accounting developments

5 Segment information

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6 Separately disclosed items

7 Finance expense and income

8 Dividends

9 Earnings per share

Total earnings per share

10 Goodwill and intangible assets

11 Impairment testing of goodwill and indefinite life intangible assets

Impairment recognised during the year

Tab New Zealand

STS Poland

BetCity

Belgium

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Impairment recognised during the prior year

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12 Property, plant and equipment

13 Net debt

14 Notes to the statement of cash flows

15 Commitments and contingencies

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Greek Tax

Shareholder Litigation

Player Claims

Germany

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Bet MGM loan guarantee

16 Subsequent events

Actualités Entain PLC

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