Interactive Investor

ii view: bookie Entain puts markets and brands under review

Searching for a new CEO and with shares in this owner of gambling brands Ladbrokes and Coral down by more than a third over the last year. We assess prospects.

9th April 2024 15:51

by Keith Bowman from interactive investor

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Full-year results to 31 December

  • Revenues up 11% to £4.77 billion
  • A post-tax loss of £879 million and following a legal settlement
  • Adjusted profit up 1% to £1 billion
  • Second interim dividend of 8.9p per share 
  • Total 2023 dividend up 4.7% to 17.8p per share

Chairman Barry Gibson said: 

“2023 was a period of necessary, but ultimately positive, transition for Entain. We have significantly strengthened the quality of our revenue base, enhanced our Board, and delivered a resolution to a critical, historic, regulatory issue.

“We are making positive progress in our search for a new permanent CEO, and in the meantime (interim CEO) Stella David is driving the business as it continues to take appropriate actions to deliver changes to drive a better long term performance. 

“As our transformation continues the newly formed capital allocation committee has commenced a review of Entain’s markets, brands and verticals. The objectives of the review are to help focus the organisation, improve competitive positions and maximize shareholder value.”

ii round-up:

Sports-betting and gaming company Entain (LSE:ENT) operates online, generating most of its adjusted profit at around three-quarters, as well as on the High Street. 

Its sporting related betting brands include Ladbrokes, Coral, bwin and Sportingbet, with gaming brands taking in CasinoClub, Foxy Bingo, Gala and PartyCasino. 

A constituent of the FTSE 100 index and a tax resident in the UK, it has licenses in over 40 regulated or regulating markets. It also operates in the USA via a 50/50 joint venture with MGM Resorts under the BetMGM brand. 

For a round-up of these latest results announced on 7 March, please click here

ii view:

Previously known as GVC Holdings, Entain employs around 29,000 people. Competing against rivals such as Paddy Power owner Flutter Entertainment (LSE:FLTR) and William Hill owner 888 Holdings (LSE:888), the UK is its biggest revenue generator at 41%, followed by the rest of Europe at 30%, Italy and Oceania 11% each and the rest of the world the balance of 7%. 

For investors, problem gambling, a pending UK regulatory review, heightened hurdles to betting in the Netherlands, and potential government crackdowns elsewhere in the world all warrant consideration. Adverse sports results hindering margins remain an ever-present threat, competition in its targeted US market is not to be dismissed, while group net debt of £3.29 billion compares to a stock market value of £5.2 billion.  

On the upside, there has been speculation about private equity interest in Entain, and management itself is reviewing its markets, brands, and verticals with the pending appointment of a new chief executive potentially revitalising its strategy. A focus on squeezing cost savings persists, while a forecast dividend yield of around 2.2% compares well to rivals.  

For now, more cautious investors are likely to await the conclusion of the UK’s regulatory review and perhaps the appointment of a full-time CEO. More speculative investors on the other hand may concentrate on its 30 plus brands and a consensus analyst estimate of fair value sat at over £10 per share.  


  • Diversity of business type and geographical locations
  • Management review of operations


  • Uncertain consumer outlook
  • Potential for increased regulation

The average rating of stock market analysts:


These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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