Entain Aktie

Press release - 5 December 2023 15:35
Gambling giant agrees to pay £615 million in deferred prosecution

Ladbrokes owner formerly known as GVC finalizes UK deal
Fine is one of the largest UK corporate criminal settlements

https://www.bloomberg.com/news/articles/2023-12-05/entain-reaches-615-million-settlement-with-uk-over-bribes-probe

https://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/gambling-giant-agrees-to-pay-615-pounds-million-in-deferred-prosecution-3291015?utm_source=rss&utm_medium=rss&utm_campaign=Alert&utm_content=pressrelease mehr »

https://www.marketscreener.com/quote/stock/MGM-RESORTS-INTERNATIONAL-13513/news/Ladbrokes-owner-Entain-sees-500-mln-profit-for-BetMGM-in-2026-45494704/

the owner of Ladbrokes and Coral, has updated investors on the performance of BetMGM, its US joint venture, ahead of a presentation to analysts and investors later today.

The betting operator said the JV will deliver revenue in 2023 towards the upper end of the US$1.8-US$2.0 billion range and achieve EBITDA profitability in the second half.

The firm said key enhancements in both digital sports and market-leading iGaming product are presenting the opportunity to invest competitively behind the brand, driving accelerated player acquisition and aiding player retention.

The presentation will also provide clarity on why 2024 is an investment year to drive enterprise value for shareholders together with the setting of a target of approximately US$500 million EBITDA in 2026.

The presentation will be hosted by BetMGM's CEO Adam Greenblatt and CFO Gary Deutsch. mehr »

Activist investors pile pressure on Ladbrokes owner Entain
Hedge funds take aim at chief executive of UK gambling company


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https://www.ft.com/content/36549356-503d-4441-aa7c-8fdb8cd85d19

Entain faces growing investor unrest after two more US activist hedge funds voiced concern over the gambling group’s languishing share price and the ability of chief executive Jette Nygaard-Andersen to revive the FTSE 100 company’s performance.

New York-based funds Sachem Head Capital Management and Dendur Capital have built positions in the owner of Ladbrokes and Coral brands, according to five people familiar with the situation. They join Eminence Capital, a Wall Street activist that also owns a stake and went public with its grievances in June.

The activists are concerned about flagging sales in Entain’s core markets, including the UK, where regulators have cracked down on the online betting industry, as well as a series of management mishaps and costly deals, the people said.

The highest-profile of these was an equity raise this summer that helped fund the takeover of a Polish gaming company but hurt Entain’s share price.

After 23 straight quarters of double-digit growth in online revenues, Entain in September warned it expected a “low single-digit per cent” fall in pro forma online gaming revenues this year.

Its share price has tumbled this year by more than a third to a three-year low. By contrast, the share price of rival Flutter has climbed 11 per cent this year.

After the Financial Times reported activist pressure on Entain on Wednesday, the share price rose by 5.8 per cent to £8.80 in afternoon trading.

The activist investors have met regularly with Entain’s top executives in recent months. Nygaard-Andersen has become a lightning rod for criticism. A former non-executive director at Entain, with little experience in the gambling sector, she was drafted into the top job in January 2021, after her predecessor suddenly quit during a takeover bid.

One person familiar with the activists’ thinking said Entain had suffered from “a lot of self-inflicted wounds”. Shareholders had “lost faith” in Nygaard-Andersen and would seek her removal in the coming months, they added.

Entain earlier this month pledged to install four new non-executive directors to its board to fill gaps following departures this year. The activists want Eminence’s founder, Ricky Sandler, appointed to the board and to have a role in filling the outstanding vacancies, according to people familiar with their thinking.

In a statement to the Financial Times, Entain said it was “committed to constructively addressing any questions or concerns” of shareholders, adding that it recently laid out “a clear plan” to expand the business organically, improve margins and win market share in the booming US betting market.

A person close to Entain pointed to the re-election of Nygaard-Andersen with more than 99 per cent of shareholder support at the group’s annual general meeting in April.

Sachem Head, Dendur and Eminence all declined to comment.

Under Nygaard-Andersen, Entain has made 11 bolt-on acquisitions of gaming companies, with varying degrees of success. In June, Eminence published a letter criticising Entain’s decision to raise £600mn of equity to help bankroll the £750mn takeover of Polish betting operator STS.

The share price slump has pushed Entain’s market capitalisation to £5.2bn, well below the value of 2021 takeover offers the group received from Las Vegas-based casino group MGM International and Boston-based sports betting operator DraftKings. A person close to Entain said its response to the bids had been driven by shareholders’ feedback.

Eminence first took a stake in Entain in late 2020 and now owns between 4 and 5 per cent of the stock, according to a person close to the firm. Sachem Head and Dendur bought stakes following the flurry of takeover approaches in 2021, betting that the FTSE 100 group would attract more suitors. The pair’s shareholdings are below the UK disclosure threshold of 3 per cent.

Entain’s chair Barry Gibson has encouraged the investors to be patient with their demand for board seats to avoid derailing the group’s negotiations over an estimated £585mn settlement with UK authorities relating to historic bribery charges linked to a former Turkish subsidiary. The agreement could be reached as soon as next month.

Adding to the pressure on Entain, two London-based hedge funds, Martin Stapleton’s Perbak Capital Partners and Ilex Capital Partners, have taken short positions against the company worth more than £25mn each in recent months, according to public filings. Perbak and Ilex declined to comment.

One bright spot for Entain is its joint venture with MGM — BetMGM — which is the third most popular betting app in the online US market. While some shareholders still hope that MGM will return with a bid for Entain, MGM’s chief executive Bill Hornbuckle earlier this month downplayed the prospect of a second approach in the near future.

https://www.ft.com/content/36549356-503d-4441-aa7c-8fdb8cd85d19



Ladbrokes-owner Entain reaches settlement deal on Turkish bribery prob
The owner of Ladbrokes and Coral betting shops said the terms of the agreement were in line with the 585-million pound ($729 million) provision announced in August, and would now seek final judicial approval on Dec. 5.

CPS prosecutes criminal cases that have been investigated by the police and other organisations in England and Wales.

https://www.marketscreener.com/quote/stock/ENTAIN-PLC-4005005/news/Ladbrokes-owner-Entain-reaches-settlement-deal-on-Turkish-bribery-probe-45434396/ mehr »

Das sind Kaufkurse! mehr »

https://www.cnbc.com/2023/11/02/what-fanduel-ceo-said-about-disney-fanatics-sports-betting-threat.html

The continued growth has been a boon for industry leaders FanDuel and Draftkings
, which combine to hold more than 80% of the U.S. sports betting market, while other major players like Caesars
and BetMGM
have looked to carve out their own niche. mehr »

Läuft nicht, bleibt aber spanned:
Frage, ab wann Sind es kaufkurse....


Ladbrokes-owner Entain lowers profit margin forecast, shares fall
Reuters

Nov 2(Reuters) - Entain (ENT.L) on Thursday lowered its profit margin forecast for the year after it posted a drop in gaming revenue in the third quarter, hurt by adverse sporting results and regulatory pressures, sending shares of the company down 5%.

The owner of Ladbrokes and Coral betting shops as well as bwin and partypoker online brands said its expected online core profit margin to be about 25% in 2023, down from the 27.1% last year.

https://www.reuters.com/business/ladbrokes-owner-entain-q3-revenue-hurt-by-ongoing-regulation-britain-2023-11-02/


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Entain Sale a Stretch, But…

Analyst Joseph Stauff said that one way Entain (OTCPK:GMVHF) could see upside is in its core non-US online segment. Despite regulatory headwinds leading to a small year-over-year decline in the first half of 2024, the company could return to normalized organic growth in H2 of 8%, leading to +3% growth for 2024.
A second path would be a compromise with BetMGM (MGM) BetMGM compromise "to release its inflexible operating structure that we think needs to occur in the near-term before risking a more permanent step-function decrease in market share."

BetMGM Deal Could Help Entain, Too

The other avenue through which Entain could potentially restore investor confidence and boost growth is some form of compromise with BetMGM.

(That would) release its inflexible operating structure that we think needs to occur in the near-term before risking a more permanent step-function decrease in market share,” Stauff noted.

The Susquehanna analyst didn’t detail what form such a compromise would take. One idea would be for Entain to simply sell its half ownership in BetMGM to partner with MGM Resorts International (NYSE: MGM). Such a transaction would likely generate a hefty payday for the seller, and MGM has made clear it would like to control all of the iGaming and online sportsbook operators.

At the Global Gaming Expo (G2E) in Las Vegas last month, Entain CEO Jette Nygaard-Andersen told attendees that joint ventures don’t last forever, implying a time will come when BetMGM’s ownership looks materially different than it does today.

With its shares down 31.20% year-to-date, Entain’s market capitalization has slumped to $7.22 billion. That’s well below the $11.06 billion MGM offered in January 2021 to acquire the company and a fraction of the more than $20 billion DraftKings (NASDAQ: DKNG) offered later that year.

Over the nearly three subsequent years, Entain has frequently been mentioned as a potential takeover target, and analysts haven’t shied away from such speculation. Those rumors could intensify because, with the aforementioned market cap of $7.22 billion, Entain is approachable to any number of prospective suitors.

However, Nygaard-Andersen hasn’t signaled that she’s interested in selling the company and the recent acquisition binge frames Entain as more buyer than seller.
https://www.casino.org/news/analyst-suggests-entain-find-compromise-with-betmgm/ mehr »

BetMGM Partnership Unlikely to Be Permanent, Says Entain CEO


Since inception, BetMGM has been a 50/50 joint venture between MGM Resorts International (NYSE: MGM) and Entain Plc (OTC: GMVHY). That will remain the case for the foreseeable future, but a time could come when the partnership dissolves.


BetMGM Partnership Unlikely to Be Permanent, Says Entain CEO

Posted on: October 10, 2023, 05:34h.

Last updated on: October 10, 2023, 05:34h.
Avatar photo
Todd Shriber
@etfgodfather
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Since inception, BetMGM has been a 50/50 joint venture between MGM Resorts International (NYSE: MGM) and Entain Plc (OTC: GMVHY). That will remain the case for the foreseeable future, but a time could come when the partnership dissolves.
Entain CEO Jette Nygaard-Andersen
Entain CEO Jette Nygaard-Andersen. She told an audience at the Global Gaming Expo (G2E) today that the BetMGM joint venture won’t last forever. (Image: The Australian)

Entain CEO Jette Nygaard-Andersen made comments to that effect earlier Tuesday during the opening keynote address at the Global Gaming Expo (G2E) in Las Vegas. Interestingly, she was joined on the panel by MGM CEO Bill Hornbuckle. Churchill Downs (NASDAQ: CHDN) CEO William Carstanjen was also part of the discussion, which was moderated by CNBC’s Contessa Brewer.

The 50/50 structure of BetMGM is likely to continue over the near-term, but Nygaard-Andersen told the audience there will come a time when the iGaming and online sportsbook operator will have a different ownership structure.

Joint ventures don’t last forever,” said the Entain boss.

She didn’t elaborate on a timeline for the joint venture being altered or what form alterations or dissolution could take.
Interesting Timing by Entain CEO

Alone, Nygaard-Andersen making such remarks in the presence of Hornbuckle is arguably interesting. After all, the MGM chief executive officer has made no secret of his company’s desire to eventually control all of BetMGM.

The intrigue behind Nygaard-Andersen’s comments is potentially heightened because her commentary arrived less than three weeks after Entain issued a tepid third-quarter financial forecast. That stoked speculation within the investment community that recent missteps by the Ladbrokes owner could prompt MGM to smell blood and potentially make another takeover offer for its BetMGM partner.

In early 2021, Entain rebuffed a $11.06 billion takeover proposal from MGM, dismissing it as inadequate. For his part, Hornbuckle has been steadfast in telling analyst and investors that his company won’t again bid for Entain.

As of the close of US markets today, Entain has a market capitalization of $7.21 billion, perhaps signaling that any prospective suitor could get the Coral owner to the bargaining table with an offer well below $11.06 billion.


https://www.casino.org/news/entain-ceo-says-betmgm-jv-wont-last-forever/ mehr »

https://www.proactiveinvestors.com/companies/news/1027684/entain-s-three-year-low-is-attractive-time-for-mgm-to-renew-bid-analysts-1027684.html mehr »