Entain sets "winning in the US" target after strategic review reaches conclusion
The London-listed operator has been the subject of an internal strategic review that tees Entain up for a strong rest of the year stateside
Entain has insisted that “winning in the US” is now a key target for the group following the conclusion of an internal strategic review.
The review was conducted by the firm’s Capital Allocation Committee (CapCo) and determined that 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 50/50 joint venture with MGM Resorts International continues to prove fruitful, with BetMGM’s product roadmap “progressing well” according to CapCo’s review.
That roadmap includes two recently launched improved MLB and NBA sports betting markets which have been aided by Entain’s acquisition of Angstrom Sports in 2023, a specialist data analytics provider.
Staying in the US, Entain also secured an unconditional license in Nevada earlier this month, which management hailed as a “great achievement.”
The update, issued yesterday, May 22, following the conclusion of the review did not provide any further details on the future of the JV.
Entain chairman Barry Gibson expressed his optimism for the future of the group but conceded there was still work to be done.
“I am delighted that the Capital Allocation Committee has concluded its strategic review of our portfolio,” he declared.
“While 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.”
Elsewhere, as part as the CapCo review, the group has determined that its Georgia-facing brand Crystalbet is “non-core” to the business.
The group went on to add that interest from potential acquirers had been made clear.
Entain acquired a 51% stake in Crystalbet back in 2018, before snapping up the remaining 49% three years later.
News of Crystalbet’s potential sale comes just months after media reports suggested that Entain also planned to offload partypoker and focus on the company’s core assets.
March saw Entain the subject of reports in The Financial Times which suggested the operator had hired Wall Street firm Moelis to assist with selling businesses that aren’t using the company’s tech stack, with BetCity, Ladbrokes Australia, Enlabs in Sweden, and Crystalbet all potentially up for sale.
The CapCo’s review found that Entain boasts 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 FTSE 100 firm noted in the update that CapCo will continue to review the company’s strategic process and “consider options to maximize shareholder value, including ongoing oversight of all significant aspects of capital commitments.”