Entain PLC backed its ‘portfolio of diversified’ assets, as it reported the conclusions of a strategic review on Tuesday, opting to hold on to its brands, save for a non-core offering in Georgia.
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.
The newspaper reported that a number of buyout firms, including the likes of Apollo Global Management Inc and CVC Capital Partners, are watching on with interest.
The firm in April reported Barry Gibson has chosen to step down as Entain chair, having served in the role since February 2020.
Stella David, interim chief executive officer of Entain since December, will replace Gibson as chair following his departure.
Entain last month also said that the search for a permanent CEO, following the departure of Nygaard-Andersen in December, is ‘ongoing and is progressing well’.
Nygaard-Andersen’s departure came after the company agreed to pay £585 million to HMRC to settle an investigation concerning alleged bribery at its Turkish businesses between 2011 and 2017.
Entain shares fell 0.7% to 740.60 pence each in London on Tuesday morning.
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