Entain announces the completion of a strategic review by the Capital Allocation Committee ("CapCo") of Entain's Board of Directors of its portfolio of markets, brands and verticals, which commenced in January 2024.
With the objective of maximising shareholder value and reflecting the operational progress of the business, the conclusions of this review are:
Entain has the right portfolio of diversified strategic assets, brands, capabilities and geographic presence to ensure it is well positioned to deliver high quality growth over the long term.
There is significant potential to focus on executing the Group's strategy of returning to organic revenue growth, expanding margins and succeeding in the US.
Entain's balance sheet and leverage position is strong and has been strengthened by the recent extension of Entain's RCF and refinancing and term loan additions.
Crystalbet, the leading gaming brand in Georgia, is not central to the Group. As such, strategic alternatives for this business will be considered, including interest already received from potential acquirers.
As part of this review, the CapCo considered developments in Entain's key markets and operational progress towards its strategic objectives, including:
Brazil returning to solid double-digit revenue growth during the second quarter, with actions taken to improve customer acquisition and retention accelerating our performance.
The levelling of the regulatory playing field in the UK with the new voluntary industry code on safer gaming controls for customers and the implementation of industry-wide slot limits from September, together with our improving customer offering, underpins our expectation to return to growth later this year.
Delivery of the product roadmap for BetMGM is progressing well, including the recently launched MLB and NBA sports betting markets supported by Angstrom's unique capabilities, especially in parlay products.
On 16 May 2024, the Nevada Gaming Commission unanimously approved the applications of Entain and certain of its subsidiaries without limitation.
Entain CEE is performing well and the prospects for online casino liberalisation in Poland are increasingly encouraging.
The Romer Project is on track to deliver targeted cost savings by streamlining Entain's operations and improving efficiency.
Following this review, the CapCo will continue to regularly review strategic progress and consider options to maximise shareholder value, including ongoing monitoring of all significant aspects of capital commitments.
Barry Gibson, Chairman of Entain, commented:
"I am delighted that the Capital Allocation Committee has concluded its strategic review of our portfolio. While we still have more work to do to improve our operating performance, the Board is pleased with the progress Entain is making so far in 2024, in line with our strategy. The Group has the fundamental strengths, brands and products to be competitive in all its markets and continues to be a world leader in betting and gaming.
The Board looks forward to updating the market on its progress in the interim results in August."
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