Earnings+More - No pressure: Entain awaits its new boss
It's been a long, a long time coming, but I know a change gon' come. What next for Entain?Leaderless and with activist investors demanding change both from within and without, Entain faces a tricky start to 2024. First things first: The company needs a new CEO after Jette Nygaard-Andersen quit with immediate effect at the end of 2023. The board has shown a desire to break from the old regime by appointing non-executive director Stella David as interim CEO, rather than deputy CEO and CFO Rob Wood.
Others to have been given mentions in despatches include:
Hospital pass: The board might consider some to be too untested – at FTSE 100 level at least – while all might well have questions about the attractiveness of the role given the current backdrop.
Hot mess: The alternative view, as expressed by one advisor, is the job is an “organizational challenge.” “There are people who know big businesses and have the clarity of thought to bring all of Entain’s acquired businesses together. Gambling sector knowledge is not a must-have.”
Venture capital firm Yolo Investments manages in excess of €500m in capital across 100 exciting fintech, gaming and blockchain companies. The Yolo Investments' Gaming fund, regulated by the Guernsey Financial Services Commission, has taken positions in fast-growth suppliers and operators, including Dabble and Enteractive. Yolo Investments (yolo.io) wants to hear from readers of this newsletter. Get in touch with your pitch, or for a chat about innovative products which can plug into our investment ecosystem. Jette propelledHow did we get here? Nygaard-Andersen resigned after pressure from activist investors and an FT report that revealed her internal nickname as ‘Private Jette’ because of the frequency of her private flights.
That camel’s back was already loaded down with seven acquisitions Entain made during 2022 and 2023:
Strategic rights and wrongs: The bolt-on spending spree followed a change in the European gambling market as a new breed of national champions rose to challenge Entain and peers such as bet365 and Flutter.
Peel Hunt analyst Ivor Jones told E+M: "Different shareholders want different things at different times. The board took the decision to seek higher levels of sustainability and less risk. “If this is the priority then the strategy makes perfect sense. If you are a shareholder that wants as much money as possible in the short term then that position is difficult."
In the in-tray: The new CEO will need to focus on getting the most out of the acquired businesses. With no M&A on the horizon, group director of M&A Nick Batram left the company shortly after Nygaard-Andersen. The dabbling with diversifying away from gambling (see Unikrn) is also dead in the water.
“There have been so many changes of organization and restructurings over the past couple of years,” said an analyst source. “They need to decide who is responsible for what. What is local and what is central? You need that to be very, very clear.”
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Matchbook B2B - Because the best price is for everyone. Visit http://www.matchbook.com/promo/b2b or get in touch at b2b@matchbook.com +More dealsGolden Entertainment has announced the completion of the previously disclosed sale of its distributed gaming operations in Nevada to an affiliate of J&J Ventures Gaming for $214m in cash. Australian minnow BlueBet is in discussions regarding “strategic initiatives” with the Australian Betr and other potential partners. Recall, the Matt Tripp-led Betr has long been rumored to be a potential bidder for PointsBet’s Australian business. Table talk: Another rumor given an airing late last year – and providing a question which is yet to be answered – is whether Playtech was considering jettisoning its B2B arm in order to effect a merger with William Hill. M&A in 2023Poetic license: The remnants of Entain’s prior bolt-on strategy litter the chart of M&A deals in 2023 like archaeological remains in the desert. But it was the second deal in the list of top buys – the £750m splashed out on STS – that ultimately led to the defenestration of Nygaard-Andersen and the parallel ending of the company’s erstwhile bolt-on strategy. 🎯 The top 10 M&A deals in the gambling space in 2023
The Italian front: The purchase of SKS365 in November became something of a bunfight, with Playtech going public on its desire to be considered a bidder and rumor circulating that Flutter was also in the market to augment its existing Italian market positioning.
The way forward: Of significance further down the list are the $225m Fanatics laid out for PointsBet US and the $165m MGM Resorts stumped up for Push Gaming.
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BettingJobs is the global leading recruitment solution provider for the iGaming, Sports Betting, and Lottery sectors. Backed by a 20-year track record of successfully supporting the iGaming industry, it's no surprise BettingJobs is experiencing rapid growth and outstanding results. Does your company plan to expand its teams to cope with strong demand and growth? Contact BettingJobs today where their dedicated team members will help you find exactly what you are looking for. An +More Media publication. For sponsorship inquiries email scott@andmore.media. |
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