Entain Share Discussion Threads

[the white house] 13/3/2024 15:11

Kenny has Doddie in the next

[pete160] 12/3/2024 20:05

'His experience is in US gambling, hope he adds value here too.'
He will if he lists ENT in the US :-)

[bargainsniper] 12/3/2024 16:36

Thanks for the heads upI placed a bet on the horse and won

[the white house] 12/3/2024 16:16

KK superb 2nd to fav at a big price

[the white house] 12/3/2024 15:50

BatMGM (not the entain 1/2) has crashed 3 times during Cheltenham thus far, not loading for minutes when up, needed a new app version to be reloaded in the middle of the day, failed to settle my Chianti Classico correctly ie not paid & 500+ in the live chat all told customer service is down no support. Decent bonuses only keeping many involvedKenny has a runner tellmesomethinggirl in the next

[the white house] 12/3/2024 14:21

Ex President of Wynn Casino as a neddy & 1.4m hubby & Stella purchase. Money talks

[casholaa] 12/3/2024 13:23

Get back up there!

[bargainsniper] 12/3/2024 12:00

Directors buying up shares on the cheap

[merism] 12/3/2024 11:54

The FTSE-100 gambling group which owns Ladbrokes has hired bankers to prepare a sale of PartyPoker as it seeks to fend off activist investors by reinvigorating its core operations.Sky News has learnt that Entain is working with advisers from Oakvale Capital on a prospective sale of the online poker business.Industry sources who have been contacted about the sale said on Tuesday that they expected it to fetch around £150m

[loganair] 12/3/2024 11:12

It seems to me almost as though Entain has now put itself up for sale.

[bargainsniper] 12/3/2024 10:40

If they slim down the business to suit mgm and make it match the price mgm would like to pay then they might be interested


Duhhhhh

[pj84] 12/3/2024 10:34

Article talks about a review of non-core businesses bought during Jette's reign and a suggestion that a slimmed down Entain might reignite MGM's interest.

The article concludes:-

"Advice Buy

Why? The appointment of a veteran chief executive from inside the industry should provide a boost"

[bargainsniper] 12/3/2024 10:27

I wonder if he was known to/put forward by Ricky Sandler being US NY.His experience is in US gambling, hope he adds value here too.

[suetballs] 12/3/2024 10:05

Any views on Kramer appointment please?
He appears to have relevant experience.
Suet

[bargainsniper] 11/3/2024 18:19

North Carolina is live

[uncle bungay] 11/3/2024 18:16

I just had a read at Entains fininacial report from last week. I am only fair in accountancy matters but I noticed a couple of concening points. Reads like a conspiracy theory but Companies have been known to increase 'actual' asset and associated inventory costs to record a more positive financial result.

The Figures quoted below are from the section titled 'NZ Ent Limited (trading as Tab NZ)'.

Details of the purchase consideration, and the values of net assets acquired and goodwill are as follows (need to remember that the figures are quouted in £m.) A NZ dollar equates as $1.62 to a £1. Goodwill refers to the amount over book value that one company pays when acquiring another.

The NZ Government had to bail the NZ TAB out for around $60,000,000 about three years ago as they were on paper insolvent. So how did Entain come up with an asset cost of goodwill of £250 million ? They are 50/50 partners so they are saying its worth double that . Entain are not purchasing the NZ TAB (it's a Government controlled monopoly) they haved signed a strategic partnership agreement with a 50/50 profit split. Goodwill should not be in the equation as an asset. The bottom line is it's not an asset that they should list as such as they didn't purchase the NZ TAB.

From Entains Financial accounts for end of 2023.
Intangible assets (excluding goodwill) £894,000,000 millionn . They have listed goodwill as a £250 million net asset aquired. Intangible assets in the 2022 NZ TAB Annual report were listed as $54,000,00 , how does that balloon out to £894,000,000m in Entains accounts?

Property, plant and equipment purchased 17.4 m ($30,816,283 NZ $)
In the 2022 NZ TAB Annual report Property, plant and equipment was valued at $51,209,000 NZ ( equates to £28,896, 407)



hxxps://static.tab.co.nz/content/uploads/TAB%20NZ%202021-22%20annual%20report.pdf

In relation to the financial profile of the partnership itself, the agreements’ commercial structure is a 50/50 gross profit share. Gross profit being revenue less variable expenses such as product fees and applicable taxes. But that differs from the following quote:
Quote from Dean Shannon Entains main man down-under. We’re up for lot of things, which includes rebuilding the industry with greater investment,” Shannon said. “Our 50 per cent share of the profits comes with our responsibility to pay all the expenses, that’s how committed we are to this venture.

I fail to see why Entain has the cost of intangible assets relating to the NZ TAB listed in their accounts . They are paying around $200,000,000 a year for the rights to be in the partnership. £894,000,000m for intangible assets of a Company you have become a 50/50 partner in? something just doesn't add up.
Quote below from Entain media release following NZ Government approval for them to become 50/50 strategic partners.


The estimates set out in this announcement have been prepared based on numerous assumptions and forecasts, some of which are outside of Entain's influence and/or control, and is therefore inherently uncertain and there can be no guarantee or assurance that it will be correct. The estimates have not been audited, reviewed, verified or subject to any procedures by Entain's auditors. Undue reliance should not be placed on them and there can be no guarantee or assurance that they will be correct.

Once again quote from Dean Shannon Entains main man down-under. We’re up for lot of things, which includes rebuilding the industry with greater investment,” Shannon said. “Our 50 per cent share of the profits comes with our responsibility to pay all the expenses, that’s how committed we are to this venture.

A Company on behalf of it's shareholders puts in a bid for a 25 year deal for close to one billion dollars to be paid over the first five years and they say they will pay 'all' the expenses. This is a deal done on a Company that was without Government injected funding going to go into liquidation. How a Government run wagering monopoly ever got iself into that state is beyond me and surely thats concern enough to have estimates reviewed and verified by your Company Auditors. Its called due deligence and in the best interest of your shareholders you owe them that procedure to be carried out.

Frankly it's an unbelievable situation and one would imagine it's not the first time Entain have become partners or purchased a Company without first reviewing actual and forecast figures.

Note (2) For the purposes of UK LR 10.4.1 R, as at 31 January 2023, the assets of the entity subject to the strategic partnering arrangement had a gross asset value of approximately NZ$138m (approximately £70m1) and generated operating profits of NZ$16m (approximately £8m1) in the year ending 31 July 2022



Gross asset value of ther NZ TAB reported to the London Stock Exchange as $138 million as at 31 Jan 2023 and then recorded in Entains last 12 months financial accounts total assets acquired as a 50/50 partner recorderd as 1,208 £m.

The above qoute 'The estimates have not been audited, reviewed, verified or subject to any procedures by Entain's auditors.? Maybe its a little bit clearer now why they didn't get them involved.

Entain keep referring in the accounts as 'acquired ' when referring to the NZ TAB. Purchase 'Acquisition accounting is a method of recording a company's purchase of another company' - they didn't puchase the NZ TAB it's a strategic 25 year partnership.

[merism] 11/3/2024 17:42

I think they are guiding around 340 to 350m EBITDA.

[cheshiremoggie] 11/3/2024 16:46

ENT made around 1b EBITDA without any contribution from BetMGM.How much did 888 make?

[merism] 11/3/2024 16:14

888 has a market cap of 375 million. What price would Entain be excluding BetMGM?

[popper joe] 11/3/2024 16:08

I'm not sure anyone going to pay 6-8b dollars for ENT's half of BetMGM, when the whole of the Entain business is only valued at 6b dollars today. I appreciate there would have to be a premium if someone (MGM) did want to buy the the whole business, but the market clearly doesn't share your valuation of half of BetMGM.

[bargainsniper] 11/3/2024 13:07

Purchased a fewI believe a lot of the negatives are behind us and Entain moving back on course.

[cheshiremoggie] 11/3/2024 12:48

Confidence here certainly very low.But...Management have at least put all of the bad news out there - we hope.It's a well used tactic.Underlying profits were nearly 340m indicating the business has some potential.As much as it pains me, I now agree with srp and think ENT should sell their half of BetMGM (I would expect 6-8b dollars) and concentrate on the rest of the world. Selling BetMGM would eliminate all debt and still leave a considerable sum for further investment or special dividend.I still think this will all finally play out around 2030.See you then...

[casholaa] 11/3/2024 12:33

Sadly yes. High hopes low outcome.

[suetballs] 11/3/2024 12:25

Confidence here is shattered.
Suet

[mylands] 11/3/2024 12:05

Ever downward, soon below £7!