Entain’s strategic global review will likely result in the sale of its Crystalbet brand in Georgia, but it has backed the remainder of its global assets, which it is confident are well-positioned to deliver “high-quality long-term growth”.
Entain, which is still on a search for a permanent global CEO to replace Jette Nygaard Andersen, announced in January that the Board’s Capital Allocation Committee was reviewing the company’s portfolio of markets, brands and verticals.
While this prompted speculation that aspects of the company may be sold globally, the only business deemed ‘non core’ was Crystalbet, the leading gaming company in the Eastern European country of Georgia.
“As such, strategic alternatives for this business will be considered, including interest already received from potential acquirers,” the review said.
Otherwise, the review gave the remainder of the company’s assets a clean bill of health.
“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,” the review said.
“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.”
“Entain’s balance sheet and leverage position is robust and has been strengthened by the recent extension of Entain’s RCF and term loan repricing and add-ons.”
Bren O’Brien
The report did not specifically mention Entain’s Australia and New Zealand operations, which include Ladbrokes, Neds and the NZ TAB, but did point to strong double-digit revenue growth in Brazil and optimism for the UK market.
The United States remains key to the company’s growth strategy.
“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,” the report said.
“On 16 May 2024, the Nevada Gaming Commission unanimously approved the applications of Entain and certain of its subsidiaries without limitation.”
Barry Gibson, Chairman of Entain, welcomed the results of the review.
“I am delighted that the Capital Allocation Committee has concluded its strategic review of our portfolio. Whilst we still have more work to do to improve our operational performance, the Board is pleased with the progress Entain is making so far in 2024 in line with our strategy,” he said.
“The Group has the core strengths, brands and products to be competitive across its markets and continues to be a global leader in betting and gaming. The Board looks forward to updating the market further on its progress at the interim results in August.”
Bren O’Brien
