REG - Entain PLC - Capital Allocation Committee Update

EntainAnnouncement

21/05/2024 07:00

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RNS Number : 1770P  Entain PLC  21 May 2024

For Release at 7.00am

21 May 2024

 

Entain plc

("Entain" or the "Group")

 

Capital Allocation Committee Update

 

Entain plc (LSE: ENT), the global sports betting and gaming group, announces
the conclusion of a strategic review by the Board's Capital Allocation
Committee ("CapCo") of Entain's 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 appropriate portfolio of diversified strategic assets,
brands, capabilities and geographic footprint to ensure it is well positioned
to deliver high quality long term growth

·   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 balance sheet and leverage position is robust and has been
strengthened by the recent extension of Entain's RCF and term loan repricing
and add-ons

·    Crystalbet, the leading gaming brand in Georgia, is non-core 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 the operational progress made towards its strategic objectives
including:

·     Brazil returning to strong double-digit revenue growth during Q2,
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 customer safer gambling checks and implementation
of industry wide slots limits from September, together with our improving
customer offer, support our expectation of returning to growth later this year

·     Delivery of the product roadmap for BetMGM is progressing well,
including recently launched MLB and NBA sports betting markets supported by
Angstrom's unique capabilities, particularly 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 outlook for online casino
liberalisation in Poland is increasingly encouraging

·    Project Romer is on track to deliver targeted cost savings through
simplifying 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
oversight 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. Whilst 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."

Enquiries:

 Investor Relations - Entain plc        investors@entaingroup.com (mailto:investors@entaingroup.com)

 Media - Entain plc                     media@entaingroup.com (mailto:media@entaingroup.com)

 Powerscourt                            Tel: +44 (0) 20 7250 1446

 Rob Greening/Russ Lynch/Sam Austrums   entain@powersco (mailto:entain@powerscourt-.com) urt-group.com
                                        (mailto:entain@powerscourt-.com)

 

Upcoming dates:

2024 Interim results:                          8
August 2024

 

About Entain plc

Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest
sports betting and gaming groups, operating both online and in the retail
sector. The Group owns a comprehensive portfolio of established brands; Sports
brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands
include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group owns proprietary technology across all its core product
verticals and in addition to its B2C operations provides services to a number
of third-party customers on a B2B basis.

The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and
iGaming in the US. Entain provides the technology and capabilities which power
BetMGM as well as exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK and is the only
global operator to exclusively operate in domestically regulated or regulating
markets operating in over 30 territories.

Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by
MSCI. The Group has set a science-based target, committing to be carbon net
zero by 2035 and through the Entain Foundation supports a variety of
initiatives, focusing on safer gambling, grassroots sport, diversity in
technology and community projects. For more information see the Group's
website: www.entaingroup.com (http://www.entaingroup.com/) .

 

LEI: 213800GNI3K45LQR8L28

 

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