June 6, 2024 2 min read

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Eminence Capital Becomes Entain’s Fourth Largest Shareholder

The asset management firm remains optimistic regarding the gambling giant’s prospects, relying on the success of Entain’s global initiatives

Ricky Sandler, CEO of Eminence Capital, has increased his stake in Entain to 5.18%, making Eminence Capital the fourth largest shareholder of the FTSE 100 firm. On 3 June, Sandler acquired an additional 7.1 million shares, bringing Eminence Capital’s total holdings in Entain to 37,154,030 shares, thus surpassing the 5% reporting threshold.

Entain Is Increasingly Attractive to Investors

With this acquisition, Eminence Capital now stands behind The Capital Group Companies (15.16%), Dodge & Cox (9.99%), and BlackRock (5.59%) in terms of significant Entain shareholders. Sandler’s increased investment underscores his confidence in Entain’s potential for sustained growth, a sentiment shared by other high-profile investors and industry insiders.

Entain has recently achieved several key milestones that have bolstered investor confidence. In April, the company’s stock saw a 5% surge following reports of potential interest from private equity giants such as Apollo and CVC Capital. This development indicates broader optimism about the gambling giant’s prospects as it navigates past rising industry challenges.

Entain’s Q1 results seem to support this bolstered confidence. The company’s quarterly revenue, including its significant stake in the BetMGM joint venture, grew by over 6%. While some regions performed better than others, Entain has taken measures to refocus on its most profitable jurisdictions and mitigate costs and deficiencies, reevaluating its approach to tackling shifting market dynamics.

The Company Positions Itself for Sustained Growth

In May, Entain concluded its strategic review, affirming that the company is well-positioned for long-term growth. The review highlighted Entain’s diverse assets, robust brands, extensive capabilities, and impressive geographic footprint. Additionally, Entain’s financial stability has been enhanced by the recent extension of its Revolving Credit Facility (RCF) and the repricing and add-ons of its term loan.

Entain’s expansion continues with the recent acquisition of a full gaming license in Nevada, allowing the company to enter a promising new market. Other positive developments include strong performance in Poland and significant progress on Project Romer, aimed at improving operational efficiency. The company also plans to divest itself of its Georgia-facing brand, Crystalbet, identifying it as non-core to the group.

These developments reflect an optimistic future for Entain, making it an attractive investment for stakeholders like Eminence Capital. As the company continues to execute its strategic initiatives, it is well-positioned to capitalize on growth opportunities in the global gaming market and deliver long-lasting value to its shareholders.

Deyan is an experienced writer, analyst, and seeker of forbidden lore. He has approximate knowledge about many things, which he is always willing to apply when researching and preparing his articles. With a degree in Copy-editing and Proofreading, Deyan is able to ensure that his work writing for GamblingNews is always up to scratch.

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