After a strategic review concluded that the operation is non-core to the group, Entain could sell its Georgia-facing Crystalbet brand. Many parties have already declared their interest.
The Capital Allocation Committee of The Entain board launched the review in January. They were looking at its portfolio of markets, brands, and verticals. Entain said that this was the objective of maximizing shareholder value and reflecting the operational progress of the business.
In March, there was a talk of potential brand sales when the Financial Times reported that Entain had hired Wall Street firm Moelis to advise on asset sales. This came just after a week when Entain posted a net loss of £936.5 million or €1.10 billion or $1.19 billion in its 2023 full-year.
The committee listed numerous major findings upon concluding the review. One of these is to consider strategic alternatives for Crystalbet. Entain’s predecessor, GVC, obtained a part of this in 2018. In 2021, Entain purchased the remaining 49% stake in the brand.
Entain said that the committee concluded that the brand is non-core to the group. As such, they will consider strategic alternatives for this business, including interest already received from popular acquirers. Entain did not disclose the identity of any interested parties.
Alongside the possible Crystalbet sale, the committee also published many other conclusions from the strategic review.
Among these is that Entain has the appropriate portfolio discovered of diversified strategic assets, brands, capabilities and geographic footprint to ensure it is well positioned to deliver high-quality, long-term growth.
The committee also noted Entain’s future potential. It referenced a significant upside of focusing on returning to organic revenue growth, expanding margins and winning in the United States.
Moreover, the committee labelled the group’s balance sheet and leverage position as robust.
