Entain launches employee share ownership initiative as Q1 online revenue climbs 32%
More than 22,000 staff are invited to save up to £100 per month for the chance to buy Entain stock at a 20% discount
Entain has rolled out a company-wide employee share ownership plan to give UK and international colleagues the chance to save and share in the public growth trajectory of the FTSE 100 company.
Around 22,500 employees at all levels of the business have been invited to apply for the new ShareSave scheme, where they are able to save between £5 and £100 per month.
Under the terms of the plan, staff can save their selected monthly amount for up to three years. At the end of this period, they will have the opportunity to buy shares in Entain at 20% less than market value as of the start of the invitation period, which they could then sell for a potential profit.
Alternatively, ShareSave participants can keep hold of the stock as active shareholders or simply reclaim the savings as cash.
The ShareSave scheme will initially be offered to employees working in countries representing around 99% of its existing workforce, including the UK, Philippines, India and Bulgaria.
The plan will be implemented this year and is designed to put share ownership within reach of everyone at the business, according to Entain CEO Jette Nygaard-Andersen.
Jette Nygaard-Andersen
She said: “Entain has been one of the highest performing companies in the FTSE 100 over the past year, which is the result of hard work and efforts from teams across our international business.
“Building a strong customer-centric culture where everyone contributes and shares in our continuing success is really important, so this plan is designed to be attractive and accessible to all,” she added.
Elsewhere, Entain today revealed its Q1 2021 financial report where online net gaming revenue (NGR) increased by 32% on a constant currency basis for the period ending 31 March.
Reporting its 21st consecutive quarter of online growth, the operator detailed an online sports betting NGR rise of 44% in all key markets excluding Germany, as the operator continued to gain a boost from abnormally strong margins. Online gaming NGR for the period increased by 23%.
Entain owns 2,885 Ladbrokes and Coral shops across the UK and Ireland as well as 4,662 globally and was negatively impacted by Covid-19 closures throughout the reporting period as retail revenue came in 99% lower than at the same period of last year.
As a result, overall group NGR fell 13% on the prior corresponding period.
UK betting shops reopened on Monday 12 April which should at least provide a retail betting revenue boost in Q2.
In the US, Entain’s BetMGM joint venture (JV) with MGM resorts has reportedly taken a 19% overall market share in the states where it operates as of Q1, rising to 23% for igaming.
A BetMGM business update will be published on 21 April.
Peel Hunt analyst Ivor Jones wrote: “BetMGM goes from strength to strength and credibly claims to have its eye on a number two position in the US market. Next week’s BetMGM presentation should give extra confidence to shareholders about its prospects.
“In the meantime, Q1 trading, supported by abnormally strong sports margins, was up 32% which, at the very least, underpins our forecasts,” he added.