AmazonScience/document-haystack

1Retail2The Retail business is made up of our Retail estates in the UK, Italy, Belgium, Croatia, New Zealand, Republic of Ireland and Poland. 3Year Ended 31 December4Results1520236£m720228£m9Change10%11CC212%13Sports wagers 4,341.7 3,827. 3 12% 11%14Sports margin 18.9% 18.3% 0.6pp15Sports NGR/Revenue 813.0 705.2 15% 14%16Machines NGR/Revenue 573.7 572.6 0% 0%17NGR 1,386.7 1 ,277.8 9% 8%18VAT/GST (3.6) – – –19Revenue 1,383.1 1 ,277.8 8% 8%20Gross profit 900.2 860.0 5%21Contribution 4 890.3 852.1 4%22Contribution 4 margin 64.2% 66.7% (2.5pp)23Operating costs excluding marketing costs (606.1) (571.9) (6%)24Underlying EBITDA 5 284.2 280.2 1%25Share based payments (2.4) (2.3) (4%)26Underlying depreciation and amortisation (132.1) (112.4) (18%)27Share of JV income – – –28Underlying operating profit 6 149.7 165.5 (10%)29Results1:30Our Retail businesses continue to show the strength of their offer and customer appeal with 2023 Revenue and NGR both +8%cc 2 ahead 31of 2022 and proforma 3 NGR +2%cc2 ahead. 32In the UK, NGR was +2% ahead of 2022 on a LFL 7 basis, with strong performance across both sports and gaming. Our strong underlying 33performance continues to be driven by an ongoing focus on market leading content for our gaming machines and betting terminals with 34both providing a proposition akin to the digital offering but combined with the in-shop experience that cannot be replicated online.35NGR in Italy was up +16% on a constant currency 2 basis with a number of enhancements to our offering and the customer 36experience including cash-out, reduced minimum bet sizes and continuous development of our SSBT proposition driving greater 37customer engagement.38Proforma 3 NGR in Croatia grew at +14%cc 2 year on year further enhancing our market leading position and reflecting our program of 39improvements to the customer offer, including the introduction of a loyalty scheme and enhanced sports content.40In Belgium, NGR was up +10%cc 2 with Ireland NGR +1%cc 2 ahead year on year. Our newly acquired Retail businesses in Poland and New 41Zealand contributed £40.4m of NGR during 2023.42Contribution 4 of £890.3m was +4% ahead of 2022 with contribution 4 margin falling by 2.5pp due to territory mix and the impact 43of certain content costs (1pp) which are now classified as cost of sales rather than operating costs as they move to revenue share 44arrangements from fixed fees.45Operating costs were 6% higher than in 2022 with the impact of acquisitions (5pp) and inflation, including wage rate and energy price 46inflation, more than offsetting the benefit of costs which are now classified within cost of sales. 47Resulting underlying EBITDA 5 of £284.2m was £4.0m ahead of 2022. Depreciation of £132.1m was £19.7m higher than 2022, largely 48due to the impact of acquisitions and the continued investment in our retail estates. Underlying operating profit 6 of £149.7m was £15.8m 49behind 2022 and, after charging £22.8m of separately disclosed items (2022: £57.4m), operating profit was £126.9m, £18.8m ahead of 50last year.51 New Opportunities52Year Ended 31 December 53Results154202355£m56202257£m58Change59%60Underlying EBITDA 5 (29.3) (29.1) (1%)61Share based payments (0.7) (0.3) (133%)62Underlying depreciation and amortisation (5.7) (4.5) (27%)63Share of JV (loss)/income (1.5) (0.4) (275%)64Underlying operating loss 6 (37.2) (34.3) (8%)65Entain plc Annual Report 202372661 Overview 8  Strategic report 88 Governance 140 Financial statements67Chief Financial 68Officer’s Review