Ladbrokes owner Entain begins phased Exit from CEE business with $483 million stake sale
Entain's Strategic Stake Sale and Financial Outlook
Stake Sale Details
June 25 (Reuters) - Ladbrokes-owner Entain said on Thursday it had agreed to sell a 20% stake in its Central and Eastern Europe business to partner EMMA Capital for €425 million ($482 million), marking the first step in a phased exit aimed at reducing debt.
Market Reaction
Shares in the Isle of Man-based company were up 3.3% at 573 pence in afternoon trading.
Business Pressures and Growth Strategy
Cost Reduction and Market Conditions
Entain, which operates BetMGM in the U.S. along with MGM Resorts, has been under pressure to reduce costs to offset the impact of higher online gambling taxes in Britain, though a shift toward online betting and gaming has supported growth.
Updated Financial Guidance
The company also updated guidance after saying the CEE business would no longer be fully consolidated. It now expects the core profit margin for its online division to be in the range of 21% to 22%, down from 23% to 24%, and said it was comfortable with market expectations for group core profit.
Currency Exchange Rate
($1 = 0.8821 euros)
Reporting Credits
(Reporting by Nithyashree R B in Bengaluru; Editing by Jonathan Ananda and Tasim Zahid)
