Entain Share Discussion Threads

[loganair] 16/3/2024 12:18

What I've been hearing is Entain just want certain subsidiaries off their books no matter the price they're sold for as the company no longer want to waste any more management time or money on these subsidiaries/brands.

[suetballs] 16/3/2024 10:01

Give me a reasonable exit please!
Suet

[loganair] 16/3/2024 09:50

It seems to me reasonable to say the current buying of Entain shares of the directors is because they know how much MGM are willing to paying for Entain's 50% of BetMGM.

[loganair] 16/3/2024 09:43

Recovery at Ground Zero:

In recovery mode, Entain stands at ground zero where change is not just an option but a necessity, as the PLC grapples with past failings to navigate an uncertain future, as the industry watches with bated breath the movements of gambling’s most speculated company.

Ivor Jones concluded: “Entain does not need to fire on all cylinders all at once. Indeed, if it did, it would undermine management’s claim that it had been spreading resources too thinly.

“But the UK and Australia need to show signs of responding to treatment so that investors can have some faith that the whole business can return to healthy growth one day.”

Paul Richardson added: “The CEO appointment will be crucial, as Entain needs an experienced leader and industry champion who can lead the reshaping of the business and put what is fundamentally still a really strong business with technology at its heart on a path to a recovery.”

[loganair] 16/3/2024 09:41

BetMGM: Growth or Problem Child:

Meanwhile, in North America, the growth of BetMGM is critical, not just for alleviating pressure but also as a bellwether for Entain’s overall health and appeal to investors.

Yet the joint venture finds itself at a crossroads, as concerns linger over its relationship with JV partner MGM Resorts and whether BetMGM can recoup the heights of its valuation prior to the 2023 proceedings.

Ivor Jones notes that the narrative remains that “BetMGM is still the jewel in the crown. Eventually, it should be owned by MGM in its entirety; only timing and, of course, price are uncertain.”

Partis notes that the spotlight will be on BetMGM’s litmus test of expanding its tech and platform capabilities: “When and if MGM comes back to acquire the other half of the JV, it will want to acquire the technology with it. Migration in such a competitive market simply presents too great a risk.

“There is strong corporate logic in paring back the current business to a more digestible business that MGM may want to own. Brazil, the UK and the US as key markets make a lot of sense.”

[loganair] 16/3/2024 09:36

Beyond its dire results, Entain was shocked by a year of negative headlines, revealing leadership conflicts and investor doubts, as noted by Paul Richardson, Partner of global gambling M&A Advisory Partis Solutions.

“Unfortunately for Entain 2023 was characterised by what seemed to be a never ending sequence of bad luck and bad news.” Richardson said.

“Coming on top of the HMRC settlement and the advent of activist investors onto the register, management’s credibility was further undermined by the devastating article which appeared in the Financial Times – ostensibly from well informed disgruntled insiders.”

Recognized in the investor update, Entain faces a precarious situation in which its corporate recovery hinges on rejuvenating its investment strategy aimed at enhancing its core market performance and improving tech integrations.

Noted as a steep challenge for a PLC that has grown to date via an aggressive M&A playbook, as Ivor Jones detailed: “Management has to convince shareholders that the refocusing of investment in product and marketing in core markets has not come too late to stop the rot.”

Furthermore, City analysts opine that the underlying leadership conundrum and strategy must be addressed to execute a recovery, as Paul Richardson noted: “A real issue for Entain this year has been the brain drain of top talent. The under-performance of the core businesses such as Bwin has perhaps unfairly pushed the spotlight onto the success of the M&A strategy with more pressure for instant wins.”

Consecutive M&As have obscured the reality that Entain has not successfully integrated its brands and platforms—a fact laid bare by the company’s admission of lagging performance in its UK apps and declining market presence in Brazil.”

Shrinking an Unsustainable Portfolio:

As 2024 unfolds, Entain’s corporate governance states a ‘laser focus on corporate recovery’ in which it has assigned a Capital Allocation Committee to begin its review of disposable assets of an unsustainable portfolio spanning 35 individual brands.

However, the initiative of shrinking the portfolio will once more highlight the flaws of Entain’s growth strategy and its likely discounted impact on the valuation of individual brands.

As noted by Richardson: “You might expect them to sunset brands, but it’s easier said than done. Historically, Entain has operated a strategy of localised brands across markets with little-to-no-integration. That can lead to a confused marketing strategy and reduce the brands’ potential effectiveness in a highly competitive market like Brazil.”

Peel Hunt views the shrinkage as a blunt measure required to reorganise Entain: “The focus required in core markets implies less attention being paid to peripheral businesses, even large ones if they are not integrated onto the core technology platform.

“There will be disposals, probably of businesses which require the most time and/or cash investment to realise their potential.”

[loganair] 16/3/2024 09:33

Entain may be preparing to sell some of its international gaming brands, including some acquired during the highly-criticised buying spree under former CEO Jette Nygaard-Andersen, the Financial Times reported.

Entain has now retained boutique advisory firm Moelis to advise the company on possible sales.

Moelis will advise Entain’s board and its capital allocation committee on moving on from brands which have not been integrated into the group’s technology platform, which “makes them easier to sell”, according to those familiar with the situation.

The brands sold will be part of those that are not integrated into Entain’s technology platform to make them easier to sell, the sources said, pointing to Netherlands-based Betcity, Ladbrokes in Australia, Sweden-based Enlabs and Georgia-based CrystalBet as possible targets.

Brands that didn’t use Entain’s technology platform accounted for a third of the company’s revenues last year.

However, Moelis isn’t the only advisory firm guiding Entain on the sale of its assets, as earlier this week, it was reported that the group is exploring the sale of its PartyPoker subsidiary and has enlisted Oakvale Capital to fetch the ‘maximum possible value’ for the asset – a targeted £150m sale. (How the brand has been destroyed - Just think 15 years ago Partypoker had a market cap of circa £10bln)

The sale of those brands would allow Entain to return focus to its core market in the United Kingdom and the US with BetMGM under its joint venture with MGM Resorts.

[value viper] 16/3/2024 09:02

Whoever is appointed, might be a short stint as the boss - hired to sell the company ?

[suetballs] 16/3/2024 08:56

Hope so.
Suet

[value viper] 16/3/2024 08:31

That seems highly likely

[bargainsniper] 15/3/2024 19:22

Former Sky Bet CEO Richard Flint is the favourite at 3/1 to be our next ceo

[the white house] 15/3/2024 15:05

33/1 winner of the 3rdBookies dreamOnly 14 out of 400,000+ had first 3 winners so far in ITV7

[bargainsniper] 15/3/2024 15:01

Placing was at c12 so sell non core then buy back shares at 7.5

[the white house] 15/3/2024 14:39

First two races today won by those outside first 3 in the betting. After a challenging first day books have hit back to be level am level and are now looking ahead, esp today

[loganair] 15/3/2024 11:43

Sell these non core assets at half the price they paid for them just a year ago - this is going to cost Entain several hundreds of millions of pounds in write downs.

[bargainsniper] 15/3/2024 10:50

Strategy is to focus on their key markets. Sell non core and raise cash.

[jullesorel] 15/3/2024 08:45

Base....Sell of all now? I dont think so. They want sell off companies thats not on the entain platform yet or that is on the platform but underperforming like partypokers. Its obvious that they want to slim down the company making it more interesting for bidders...Who wants to bid for Entain now with all these small companies? Say what you want about KA but he was spot on when he went for big acquistions compared to this mess created by that crazy blond woman

[pete160] 14/3/2024 19:58

Having lost half my stake, I've doubled up today in the hope that we've found the bottom.
The very definition of good money after bad!

[base7] 14/3/2024 19:07

Perhaps our Board have decided that the best strategy is for them to sell off all of our various businesses, eventually-the sum of the parts being worth more than the who & be left, ultimately with a core tech business which will also be sold.
Whatever the plan, Stella buying £1.4m earlier this week has to be good sign that at least she thinks we are worth more than 750p?

[the white house] 14/3/2024 16:08

Bad news the 100pc owned MGM BetMGM app is top of the download charts & Ladbrokes & Coral are 8th & 6th Good news their app has been down all afternoon (on my iphone15 pro max so it ain't me) and the winnings & bonuses from first two days that I would have given back given the outsiders coming in earlier is still in my account. Been Chaos with 3 updates in 3 days and it is still useless

[bargainsniper] 14/3/2024 11:47

A lot of speculationWait and see

[jullesorel] 14/3/2024 11:45

I fint it disturbing that Enlabs and Crystalbet are not integrated into Entain’s main tech platform. Those companies were picked up 3 years ago!! This means multiple costs for trading, customer service, IT....

[loganair] 14/3/2024 11:38

Entain Is Eyeing Changes to Its Business:

Speaking of sales, other recent reports suggested that Entain might be interested in divesting its PartyPoker brand. More importantly, an analyst suggested that the company could possibly sell its stake in the BetMGM brand, which it co-owns with MGM Resorts International.

The news comes in the wake of intense M&A efforts that ended up hurting the group’s overall business. In addition, the company was financially affected by the conclusion of the investigation involving its historic business in Turkey.

As a result of the deferred prosecution agreement with the Crown Prosecution Service (CPS), Entain vowed to withdraw from unregulated jurisdictions, resulting in its exit from over 140 markets.