ENT LN

Entain plc

Consumer


Presented:06/16/2021
Price:£18.24
Cap:$16.41B
Current Price:£6.81
Cap:$6.69B

Presented

Date06/16/2021
Price£18.24
Market Cap$16.41B
Ent Value$13.00B
P/E Ratio184.24x
Book Value£5.18
Div Yield0%
Shares O/S585.48M
Ave Daily Vol1,500,134
Short IntN/A

Current

Price£6.81
Market Cap$6.69B
Entain Plc engages in the provision of online sports betting and gaming. It operates through the following business segments: Online, UK Retail, European Retail, Corporate, and Other. The Other segment comprises betting and gaming activities from online and mobile operations, Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes and Sportingbet; Gaming Brands include Casino Club, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The UK Retail segment comprises betting activities in the shop estate in Great Britain, Northern Ireland and Jersey. The European Retail segment comprises all retail activities connected with the Republic of Ireland, Belgium, Italy and Spain (JV) shop estates. The Corporate segment includes costs associated with Group functions including Group executive, legal, Group finance, tax and treasury. The Other segment includes activities primarily related to telephone betting, Stadia, Betdaq, on course pitches and Intertrader. The company was founded on November 30, 2004 and is headquartered in Douglas, the United Kingdom.

Publicly traded companies mentioned herein: DraftKings Inc (DKNG), Entain PLC (ENT LN), Flutter Entertainment PLC (FLTR LN), MGM Resorts International (MGM), Tabcorp Holdings Ltd (TAH AU)

Highlights

The presenter is long shares of Entain PLC (ENT LN), formerly GVC, an international sports betting and gaming company. ENT is comprised of two assets: BetMGM, which is a 50/50 joint venture with MGM for online sports betting and iGaming in the US, and its core business, an international gaming (retail and online) and iGaming business. The core business has been built up over time through a roll up strategy, with some of the largest acquisitions being Sportingbet, Bwin, and Ladbrokes, and its largest markets are the UK, Australia, Germany, and Italy. He believes ENT is a well-run company with strong assets and technology, which will allow the entire business to grow EBITDA at a ~10% annual clip. Given the positive outlook and secular tailwinds (e.g., online growth), he expects the stock to rerate to 12x – 15x EBITDA, roughly a double from the current ~GBp1800 share price. 

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