Entain has concluded a strategic review by its Capital Allocation Committee (CapCo). This review, which began in January 2024, evaluated the company's market portfolio, brands, and operational verticals.
Key outcomes from the review include:
- Strategic Assets: Entain's portfolio of diversified strategic assets, brands and geographic presence positions it well for long-term growth.
- Growth Potential: The company sees significant potential by focusing on organic revenue growth, expanding margins and capitalising on the US market.
- Financial Position: Entain’s balance sheet is supported by the recent extension of its revolving credit facility and adjustments to its term loan.
One notable decision from the review is the identification of Crystalbet, a gaming brand in Georgia, as non-core to Entain's operations. The company is exploring strategic alternatives for this asset, including potential acquisitions.
Operational updates include:
- Brazil: Achieved double-digit revenue growth in Q2 due to improved customer acquisition and retention.
- UK: Expected return to growth later in the year, aided by new regulatory measures such as safer gambling checks, slots limits and enhancements to the customer offer.
- US (BetMGM): Continued development of BetMGM’s product offerings, including new MLB and NBA sports betting markets and recent approval of Entain’s applications by the Nevada Gaming Commission.
- Central and Eastern Europe (CEE): Positive performance with encouraging prospects for online casino liberalisation in Poland.
- Cost Efficiency: Project Romer aims to simplify operations and improve efficiency, targeting specific cost savings.
In Q1 2024, Entain reported mixed financial results. While the UK and Ireland segments saw declines in both online and retail net gaming revenue (NGR), the CEE segment experienced substantial growth, with reported NGR increasing by 124% year-on-year.
Entain’s share price recently rose amid buyout rumours involving potential bids from private equity firms such as Apollo. This speculation followed the departure of Entain Chairman Barry Gibson and the appointment of advisory firms for a possible sale of some overseas brands.
