In January, Entain’s Capital Allocation Committee initiated a comprehensive review of its markets, brands, and verticals. The objective was to maximize shareholder value and align with the company’s operational advancements. The review gained momentum in March when the Financial Times revealed that Entain had engaged Wall Street firm Moelis to advise on potential asset sales. This announcement came shortly after Entain reported a net loss of £936.5m (€1.10bn/$1.19bn) for the 2023 fiscal year.
Key Findings and Potential Sales
The committee’s findings highlighted several strategic alternatives, particularly for Crystalbet. Acquired partially by Entain’s predecessor GVC in 2018 and fully in 2021, Crystalbet was deemed “non-core” to Entain’s operations. As a result, the company is considering selling Crystalbet, with interest already expressed by potential buyers. However, Entain has not disclosed any names of the interested parties.
The review outlined that Entain’s diverse portfolio of assets, brands, capabilities, and geographical presence positions it well for long-term growth. The committee emphasized the potential for organic revenue growth, margin expansion, and success in the US market. Additionally, the group’s balance sheet and leverage position were described as “robust,” bolstered by an extended revolving credit facility and repriced term loan add-ons.
Entain’s strategic review also assessed progress in its key markets. The company expects to see growth in the UK later this year, driven by regulatory changes such as the new voluntary industry code on safer gambling checks and the £2 online slot limit set to take effect in September. These adjustments aim to create a more level regulatory playing field, contributing to Entain’s optimistic outlook for future growth.
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