For Release at 7.00am
21 May 2024
Entain
plc
("Entain"
or the "Group")
Capital Allocation Committee
Update
Entain plc (LSE: ENT),
the global sports betting and gaming group,
announces the conclusion of a strategic review by
the Board's Capital Allocation Committee ("CapCo")
of Entain's portfolio of markets, brands and
verticals, which commenced in January 2024.
With the objective of maximising
shareholder value and reflecting the operational progress of the
business, the conclusions of this review are:
·
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
· 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
·
Crystalbet, the leading gaming
brand in Georgia, is non-core to the Group. As such, strategic
alternatives for this business will be considered, including
interest already received from potential acquirers
As part of this review, the CapCo
considered developments in Entain's key markets and the operational
progress made towards its strategic objectives
including:
· Brazil
returning to strong double-digit revenue growth during Q2, with
actions taken to improve customer acquisition and retention
accelerating our performance
· The levelling of
the regulatory playing field in the UK with the new voluntary
industry code on customer safer gambling checks and implementation
of industry wide slots limits from September, together with our
improving customer offer, support our expectation of returning to
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
·
On 16 May 2024, the Nevada Gaming
Commission unanimously approved the applications of Entain and
certain of its subsidiaries without limitation
· Entain
CEE is performing well and the outlook for online casino
liberalisation in Poland is increasingly encouraging
·
Project Romer is on track to
deliver targeted cost savings through simplifying Entain's
operations and improving efficiency
Following this review, the CapCo
will continue to regularly review strategic progress and consider
options to maximise shareholder value, including ongoing oversight
of all significant aspects of capital commitments.
Barry Gibson, Chairman of Entain,
commented:
"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. 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."
Enquiries:
Upcoming
dates:
2024 Interim results:
8 August 2024
About Entain plc
Entain plc (LSE: ENT) is a FTSE100
company and is one of the world's largest sports betting and gaming
groups, operating both online and in the retail sector. The Group
owns a comprehensive portfolio of established brands; Sports brands
include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming
brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino,
Optibet, Partypoker and PartyCasino. The Group owns proprietary
technology across all its core product verticals and in addition to
its B2C operations provides services to a number of third-party
customers on a B2B basis.
The Group has a 50/50 joint venture,
BetMGM, a leader in sports betting and iGaming in the US. Entain
provides the technology and capabilities which power BetMGM as well
as exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK and is
the only global operator to exclusively operate in domestically
regulated or regulating markets operating in over 30
territories.
Entain is a leader in ESG, a member
of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a
science-based target, committing to be carbon net zero by 2035 and
through the Entain Foundation supports a variety of initiatives,
focusing on safer gambling, grassroots sport, diversity in
technology and community projects. For more information see the
Group's website: www.entaingroup.com.
LEI: 213800GNI3K45LQR8L28