DAVY VIEW

Entain issued FY24 results this morning. Growth rates improved as it progressed through the year with a good Q4, helped by favourable results. It noted that 2025 has started strongly with momentum seen in Q4 continuing into 2025 and with volumes in line with its expectations. The management presentation reiterated that organic growth has returned, and the group expects mid-single-digit Online growth in 2025. We do not expect to make any meaningful change to our FY25 forecasts. Our sense is that the business has made improvements in its key markets, which is encouraging – particularly in the UK. At a group level, year-on-year (yoy) aEBITDA growth will be muted in 2025 and leverage will not reduce. There is a more encouraging medium-term pathway, and evidence of execution during 2025 will be key to achieving this. For now, there appears to be no change of strategic direction.