Entain Plc is reportedly exploring the sale of its PartyPoker subsidiary, as the FTSE gambling group has enlisted Oakvale Capital to fetch the ‘maximum possible value’ for the asset.
As reported by Sky News, the board of Entain targets a £150m sale of PartyPoker, needed to raise funds to support the firm’s strategic reorganisation overseen by the firm’s newly appointed Capital Allocation Committee.
2024 sees Entain place all existing units apart from US joint-venture BetMGM, under strategic review, The challenges for Entain were highlighted in greater depth last week as the firm revealed its full year accounts, citing legacy declines for corporate losses of £900m.
The company has also emphasised a key focus on ensuring growth within key markets, specifically, Brazil, the UK and the US, but underlined that short-term H1 trading would be impacted by £40m costs reserved for regulatory adjustments in the UK and Netherlands.
The review of the company’s brand portfolio has led to intensified interest from M&A vultures looking to take advantage of the opportunity of Entain shrinking its bloated stable of 35 global brands.
A transaction involving the PartyPoker brand would ease struggles for the embattled operator that has endured regulatory headwinds in recent years. Nonetheless, the PartyPoker brand has declined in value in modern times, as the game’s engagement has fallen amongst online audiences. .
Upon announcing its recent results, CEO Stella David underlined that there have been significant challenges this year for the firm.
She went on to provide an optimistic outlook that the firm is on course to reach targets and return to profitability, adding: “2023 presented a number of challenges for the group, both industry-wide and Entain-specific.
“I am extremely proud of how our people around the world came together to navigate the business through an eventful and at times difficult year.
“Against that backdrop, Entain was still able to deliver overall revenue growth of 14 per cent including our US joint venture achieving revenue at the top end of expectations.”
Looking ahead, she stated: “We have started the new financial year with a clear plan to accelerate our operational strategy, and are making pleasing progress across a range of initiatives to re-focus our market portfolio, prioritise organic growth, drive our share in the US, and expand our margins.
“We are entirely focused on operational excellence and outstanding execution and, as a result, are confident that we are on a pathway to delivering future growth. We remain confident that our continued focused execution will drive organic growth into 2025 and beyond.”
