Entain Share Discussion Threads

[coxsmn] 15/6/2022 20:00

https://sportshandle.com/entain-bullish-on-us-june-22/

[the white house] 15/6/2022 18:33

Lets overlook that Ladbrokes paid a divvi for 50 years & without Covid the divvis would still be being paid relentlessly and with better and industry experienced leaders both sharper and bigger deals would be being executed not cowardly tinpot non game changing minnows

[pura vida] 15/6/2022 15:57

If you want a dividend you should buy a minner or a oil company or telecoms, diversify your portfolio. You could also buy a bank which pays dividends but dilutes their shares (to pay bouses).

[fenners66] 15/6/2022 13:51

I too want a return to dividends.
An increased share price is no use until we sell.
Since we think we have found a growing worth more in the future, business , we don't want to sell.
Meanwhile a return on our investment , pays the bills.

[badger8888] 15/6/2022 12:45

Doubt we will see a dividend declared in the August update. All things being equal what about 2023? Yes, I know ENTAIN are investing for the future, I would still like get a few £ back.

[fenners66] 15/6/2022 12:10

srpactive
14 Jun '22 - 07:55 - 6367 of 6380
>Yes good bolt on, like CM has been saying instead of paying
the dividend invest in the growth and he is correct, which will in time
pay a larger dividend.


In time .... we are all dead.

If they make €30m a year 5c/share
or even if they double that due to savings 10c/share

based on paying say €500m for it we will never see the cash paid, realised to shareholders in dividends

they would only ever pay out a fraction of those earnings, as dividends, but if they excuse another year of dividends then my guess is these will never be given back.

It becomes like the deferral of state pension - just deferring it a year earns you a slightly higher pension in the future , forgetting of course you may die long before they paid you out the equivalent and also that you could invest that instead and make a return thus having your cake and eating it !

[hmonk] 15/6/2022 11:39

800p off is clearly because part of that 800p was the bid value from DK and also because the world has changed, we’re heading in to a recession with record inflation, elevated equity risk premia and a risk off rotation. The risk free rate has shot up so anyone who values using a DCF suddenly have a much higher WACC which lowers the price. There was no dividend when the price was 800p higher either. Buying the financials trading business from PTEC would have been a big distraction for Entain in my opinion, Entain already sold of their old financial spreads business after Kenny de-emphasised it , if you buy anything from Playtech you buy Snaitech and seeing as Entain will only be 1.4x geared in 23 and below 1x in 24 there is still plenty of firepower left to buy that.

[coxsmn] 15/6/2022 11:26

Our board knows which deals to do for the best ROE.

[the white house] 15/6/2022 11:01

Wrongly800p off agrees with meMove today linked to Playtech activity which would have been a better segment to pick up rather than a unit in Holland than has only done well given a year ban on established players but are now returning and betcity share will decline

[coxsmn] 15/6/2022 09:20

Initial consideration of GBP257M for BetCity is being paid for using surplus cash. Cash is being prioritised for growth this year rather than paying a dividend.

[66fingers] 14/6/2022 22:26

Online Net Gaming Revenue (NGR) was down 6%. That reflected lower volumes in Sports, with wagers down 4%, and a drop of 9% in Gaming. These were expected declines, as some of last year's demand returned to stores. Over a 3-year basis, online NGR has grown at an annualised rate of 14% per year.

Retail benefitted from the reopening of stores reduced restrictions, with performance within touching distance of pre-covid levels despite a smaller store estate. The group had an average of 4,333 shops during the period, compared to 4,662 the previous year.

BetMGM remains the second largest operator in the US with a 24% market share in areas it operates. The business boasts number one status for iGaming, with a 29% market share.

The group completed on 3 acquisitions over the period, Avid Gaming, Klondaika and Totolotek give exposure to Canada, Latvia and Poland.

[66fingers] 14/6/2022 22:25

Debt crept up last year, owing largely to the group's acquisitions in Portugal and the Baltics. The group's already been active this year, most notably the BetCity acquisition. At last check, net debt was 2.4 times cash profit, but we'd expect that to move higher given recent acquisitions. It's not uncomfortably high, especially when you consider the c.£500m in cash on the books and free cash flow expected around £445m this year, but worth keeping an eye on.

Greater scale should help drive improved efficiency and while regulatory scrutiny remains high, Entain's geographically diverse footprint (over 50% of revenues are generated outside the UK at last count) helps mitigate the risk to some extent. The group's also taken steps to boost its ESG credentials, with increased focus on responsible gambling, and a shift to regulated markets that provide a greater degree of regulatory certainty.

The underlying business looks to be progressing well, with the group finding a good balance between building out its online presence and offering an in-store option. The BetMGM project offers a real growth driver for the future if execution remains on point. But with a price/earnings ratio some way ahead of the long-term average, there could be volatility in the event of any missteps.

Entain key facts
Forward price/earnings ratio: 15.2
Ten year average price/earnings ratio: 12.5
Prospective dividend yield (next 12 months): 2.0%
All ratios are sourced from Refinitiv. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn't be looked at on their own - it's important to understand the big picture.

REGISTER FOR UPDATES ON ENTAIN

Trading Statement (all figures at constant currency, 7 April 2022)
Entain reported a 34% increase in first quarter Group Net Gaming Revenue (NGR), ignoring the effect of currency fluctuations. The return of customers to stores helped Retail return to within 5-10% of pre-covid levels. That helped offset a drop in Online NGR, as the division lapped exceptional demand the previous year.

BetMGM, the joint venture in the US, is now live in 23 markets and remains on track to deliver positive cash profits (EBITDA) in 2023.

CEO, Jette Nygaard-Andersen, said: ''Given the strength and continuing momentum of our underlying business, coupled with our proven ability to grow both organically and through M&A, we remain confident in our financial performance for FY22 and beyond.''

[66fingers] 14/6/2022 22:22

Entain has announced the acquisition of BetCity, one of the Netherlands' leading online sports and gaming operators. The deal's expected to cost €300m in cash at completion, plus up to €550m in further performance-related payments.

The deal's expected to complete in the second half of 2022 and should deliver around €28m in cost savings by the end of 2026. Entain's expecting to fund the deal using cash on hand, plus some of its available credit.

Entain CEO, Jette Nygaard-Andersen, said: "This acquisition will provide customers with an even better experience as we combine BetCity's local expertise and brand alongside Entain's market leading, customer focused platform. This transaction further underpins our growth strategy of operating in attractive regulated markets."

The shares were broadly flat following the announcement.

VIEW THE LATEST ENTAIN SHARE PRICE AND HOW TO DEAL

Our view
The BetCity acquisition is another step in Entain's growth strategy, pushing into new regulated markets through a mix of organic and, as in this case, M&A led expansion.

The underlying business is enjoying the benefits as people return to in-person gambling. Retail revenue is approaching pre-pandemic levels.

As a result, online gaming has come under some pressure - but that was largely expected. The huge boost to online gaming last year as shops were closed was always going to lead to some tough comparisons. Importantly, some of the increased demand looks to be sticky. When you look over a longer period, gaming revenue has grown significantly in the last couple of years. This is particularly good news, because margins for the online business are a lot better than retail. It costs less to run a website than a shop.

A major shift back to bricks-and-mortar could see overall margins come under pressure, so it'll be key the group continues to attract and keep customers with its online brands.

BetMGM, Entain's joint venture with US-based MGM, has been a shining light for the group that's expected to start turning a profit in 2023. Entain estimates the North American sports-betting and iGaming market will be worth approximately $32 bn over the long term. Continued market share gains and the steady increase in the number of states in which the company operates suggest BetMGM could be in-line for a sizeable chunk of that money

[coxsmn] 14/6/2022 19:47

In time for the WC.

[hmonk] 14/6/2022 18:19

BetCity really needs to shoot the lights out to get the full €850m price, the press release says that Entain expect the price will be €450m. Based on the 10x multiple quoted in the release and the €50m payable once all synergies are realised it looks like they’re expecting €40m of EBITDA in 2023 so not a needle mover but nice to have as a partial offset to any cuts caused by the UK review.

10x seems like a decent price for a fast growing fully regulated business and is less than MGM paid for LeoVegas which is 30% unregulated.

[coxsmn] 14/6/2022 16:49

"BetCity's offering is highly complementary to Entain's bwin and Party brands which are awaiting approval for a licence to operate in the Netherlands"

[pura vida] 14/6/2022 16:37

This is way more important than an esg report 😜
I was mentioning holland the otherday, bit surprised that they are buying another brand (and not getting their license). Will this allow them to launch ladbrokes and other brands also? I trust entain with their integration of acquisitions but 500 mio for a market of 17 mil people seems a lot compared to what they invested in the us or what it could get in south america. But i'm sure there is a hidden agenda and it will be good long term

[coxsmn] 14/6/2022 15:49

British gambling group Entain agreed on Tuesday to acquire online sports betting and gaming operator BetCity in a deal worth up to 850 million euros ($887 million)

Acquisition is up to £754M

So could represent up to 9.6% of our current £7870M market capital.

Quite a significant purchase.

[coxsmn] 14/6/2022 10:59

BetCity has established a 'leading position with approximately 20% market share during the fourth quarter of 2021https://sbcnews.co.uk/latestnews/2022/06/14/entain-shows-dutch-hand-acquiring-betcity-nl-for-e850m/

[hmonk] 14/6/2022 10:58

Bright lights, big city: Having exited the Netherlands when the market regulated last October, Entain has bought its way back in via a €300m cash upfront deal with a two-year earnout that could take the buyout price up to €550m. The deal will be paid from Entain’s existing cash and bank facilities and will complete in H2.

Data from the Dutch gambling authority suggests BetCity achieved 20% market share in Q421. Analysts at Regulus estimate this was worth ~€30m in Q1. “This is remarkable from a standing start,” they added.
Got to earn it: Up to €50m of the earnout is deliverable on completion of a successful transition to the Entain platform.
Note: BetCity currently operates on the Kambi platform.
The wait goes on: Entain said BetCity would be complementary to its Bwin and Party brands which are both yet to receive licenses from the Dutch authorities. Entain said the licenses would now be in the “latter part” of 2023 as the KSA has recently requested additional documentation.

Dutch bun fight: A question for Entain/Big City is how much of that 20% it will hold on to now that Kindred’s Unibet has recently relaunched having been granted a license on June 7. Fellow market absentee Betsson is also awaiting news on its license application.

Quick buck: Noting BetCity has only been in existence since October, Regulus said the sale was “one of the most rapid returns on effort seen in the sector” and demonstrates the disruption caused by the October grey market shutdown.

Holding on “The extent to which BetCity can hang on to its market size and share as the Netherlands market evolves remains to be seen, with a platform migration adding risk.”

[coxsmn] 14/6/2022 09:06

Very nice acquisition.

[srpactive] 14/6/2022 08:26

I would not be surprised if Shay dazn returns with a bid here,
lots of value in here to split.

dyor

[srpactive] 14/6/2022 07:55

m

Yes good bolt on, like CM has been saying instead of paying
the dividend invest in the growth and he is correct, which will in time
pay a larger dividend.

Here is to a better day hopefully.

dyor

active

[mip55] 14/6/2022 07:05

Entain plc (LSE: ENT), the leading global sports betting, gaming and interactive entertainment group ("Entain" or the "Group"), today announces that it has agreed to acquire the entire share capital of BetEnt B.V., which trades under the BetCity.nl name ("BetCity" or the "Company"), from Sports Entertainment Media B.V. for an initial consideration of €300m (approximately £257m1) and deferred contingent consideration of up to €550m (approximately £472m1).

[srpactive] 14/6/2022 07:02

US futures positive.