On Thursday 12 August we hosted a Capital Markets Day presentation outlining the exciting growth opportunities ahead for the business. With presentations from CEO Jette Nygaard-Andersen, Chief Operating Officer Sandeep Tiku and MD of UK Digital, Dom Grounsell, the event set out the significant growth available to the business in our core markets, how we plan to extend the Entain platform into interactive entertainment, unlock new growth opportunities and drive greater value for our shareholders.

Entain is a truly differentiated global interactive entertainment business with a growth profile that is second to none. We are a global business with market leading positions in many markets and we have incredible proprietary technology – undoubtedly the most integrated platform in our industry. Our sustainability charter underpins our growth strategy and business operations and puts us at the forefront of our industry on responsibility, and more of our revenue comes from regulated or regulating markets than any other operator. All this is delivered by the best people and teams in the industry, with a real can-do mindset. That gives Entain the highest quality of earnings in our sector.

Underpinning all of this is our Entain platform:

Our technology, fast pace of innovation and growth (organically and through M&A) have enabled us to attract and select the best talent, not only with significant industry experience, but also with the broader experience that will help us evolve. Our global scale and brand strength enables us to unlock new value pools as we expand geographically and extend our customer offer. We have a proven M&A and integration track record that has delivered significant value. We have in-house content and product creation, and advanced data analytics across our single customer data lake that drives marketing and player protection, all supported by our deep regulatory expertise across multiple markets.

These elements all come together to create our Entain platform, which provides unique competitive advantages and powers our growth.

We have four strong growth drivers across our business. Three form the bedrock of our growth:

Our success in the US - We are now the number two operator with a 22% market share in sports betting and iGaming in line with our target of a 20%-25% share of a market that we estimate will grow from $6bn today to $32bn over the long term, including Canada.

Our growing presence in core markets - With 22 quarters of consecutive double-digit growth, we believe that the total addressable market is due to increase from $40bn currently to around $70bn over the long term.

Our expansion into new regulated markets - With 22 quarters of consecutive double-digit growth, we believe that the total addressable market is due to increase from $40bn currently to around $70bn over the long term.

These three drivers represent a c.$142bn opportunity for Entain to access. But there is more. We can leverage our platform to expand our proposition and offer customers a much more engaging, 360 degree experience.

žOur customers are demanding richer, more joined up experiences. They tell us that they want more from us and we can see opportunities to respond to that need in their behaviours. Sports bettors are nearly 3x more likely to watch betting content of play free to play games than sports followers. We also know that video game players are more than 4x more likely to participate in betting than those who don’t. These are clearly very powerful consumer demands and therefore growth drivers for our business. We can engage more with this broader audience by building on the same richer content that we can provide to our existing betting and gaming customers.

As a business we already have content production throughout our but through M&A and partnerships we can gain access to an engaged customer base and expand our capacity in this area. For example, in the UK we are partnering with ITV in producing a ten month series of documentaries on sporting greats, driving brand awareness. In Australia, we have a series of short high production videos telling engaging stories in and around the racing industry, such as ones about famous horses, or jockeys, or insights into different courses. These are designed not just to engage with our existing customers but also to reach new customers who want to follow and consume this media, bringing them into our network. The video content in Australia is doing just that, with average reach of over 2.5 million people per episode, with the most recent episode reaching over 4.5 million demonstrating that with the right content you can broaden your engagement pool.

We are also constantly innovating to create new experiences for our customers using our own in-house product studios and developers. As we recently announced, we are developing a virtual sports club experience where customers can meet and hang out with friends watching sport, play against each other in virtual games, engage with new and unique games we are creating as well as place bets.

Creating powerful flywheel effects

As we do this we create our flywheel…but there is more that we can do through extending what we do today, building new product categories, acquiring new businesses, and partnering to provide greater customer reach.

Understanding how to enrich a customers’ experience and to attract them to our ecosystem will be a powerful way to get a better understanding of their needs and importantly to put personalised products in front of them.

The ability to cross sell to a richer data pool is the most powerful and most economic way to grow our business.

As we are building our platform, increasing our reach, and scale, the network effects from the increased customer base, has clear economic benefits – we grow your customer base, increase their ARPU, increase our retention rates and lower our acquisition costs.

All this is possible because the Entain platform is scalable and expandable.

Addressable market more than tripling from today

Entain’s markets outside the US are worth around $40bn today. Adding on the expected growth in these markets, as well as North America, the market opportunity in front of us is expected to be worth around $100bn over the long term. New market opportunities available to us through organic and inorganic growth will add a further $40bn to that opportunity. The interactive entertainment market of e-sports and social casino within the larger casual mobile gaming market presents a further potential addressable market of around $20bn.

In broadening our customer pool and expanding into new audiences we can therefore unlock a market that is potentially worth around $162bn, more than tripling the size of our addressable market from where it is today. Continuing technology innovation and further changes in customer behaviour will create new markets, but the exciting thing is that the Entain platform is almost infinitely expandable into all these opportunities.

It is exciting times ahead for Entain.

Today Entain has the potential to access markets expected to be worth around $142bn comprising the growth in the markets we are in today, the growth of the US market and those potential new regulated markets.