21st May 2024 11:12
(Alliance News) - Entain PLC talked up its portfolio of brands as it reported the conclusions of a strategic probe, which resulted in only one "non-core" asset being lined up for a sale.
The Ladbrokes owner had kicked off the strategic probe in January "with the objective of maximising shareholder value".
The firm said on Tuesday: "Entain has the appropriate portfolio of diversified strategic assets, brands, capabilities and geographic footprint to ensure it is well positioned to deliver high quality long term growth. There remains significant upside by focusing on delivery of the group's strategy of returning to organic revenue growth, expanding margins and winning in the US."
Aside from Ladbrokes, Entain also owns the Coral, bwin and PartyPoker brands, all units it will hang on to. It is open to a sale of Crystalbet, however, a "non-core" gaming brand in Georgia.
"Strategic alternatives for this business will be considered, including interest already received from potential acquirers," Entain said.
Entain noted the strategic review considered recent developments in key markets. This included Brazil returning to growth and a "levelling of the regulatory playing field in the UK", where it also expects to resume growth later this year.
"Delivery of the product roadmap for BetMGM is progressing well, including recently launched MLB and NBA sports betting markets supported by Angstrom's unique capabilities, particularly in parlay products," Entain said on the joint-venture co-owned by one-time suitor MGM Resorts International.
The firm also celebrated the Nevada Gaming Commission last week Thursday approving a licence application "without limitation".
The Sunday Times in April reported the bookmaker called on investment bank Moelis to help with a review of its brands. The future of "a whole range" of assets are under consideration, The Sunday Times reported, citing sources.
Analysts at Davy commented on Tuesday: "Trade press had speculated that certain investors were previously in favour of asset disposals.
"The outcome of the committee in the main suggests that the vast majority of its portfolio remains core."
Davy noted that Ricky Sandler, founder of activist investor Eminence Capital LP, was part of Entain's capital allocation committee. Eminence built up a stake in Entain, the bookmaker said earlier this year.
Entain shares traded 1.6% lower at 734.00 pence each in London on Tuesday morning.
By Eric Cunha, Alliance News news editor
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