About this app
What is Burning Hot?
Its share price decline began after reaching an all-time high in September 2021. Over the course of five years it has slipped 73% to 530p.
It has been a challenging few years for Entain, having cycled through four CEOs in short succession. In November 2023 Entain agreed to pay a financial penalty totalling £585 million, plus a £20 million charitable donation and £10 million in Crown Prosecution Service (CPS) and HMRC costs. This related to a bribery case initiated by the CPS into the company’s historic operations in Turkey.
Troubles continued as it faced declining growth within its digital business. Reports of failed integrations amid a frenzy of acquisitions further dampened Entain’s reputation and the operator subsequently committed to a major turnaround effort to cut costs and return its digital business to growth.
What is Burning Hot?
“So we just see creating one of the biggest groups in the world in gaming terms. And we’ll be sharing the long-term plan that Lottomatica has, which is very attractive. So I mean, the risk is minor, and we feel very well protected and joining this long-term plan will be a plus to our people.”
Lottomatica will absorb Cirsa through an EU cross-border merger, with Lottomatica as the surviving entity.
Angelozzi was asked about previous cross-border M&A that had failed to deliver on initial expectations and why he felt this time was different.
About Burning Hot
Despite the revenue growth, land-based gross profit dipped 0.7% to R2 billion, largely due to the heightened investment in marketing.
“Looking ahead, as land-based gaming evolves into a more digital and experience-led environment, these initiatives, together with the implementation of a low-cost operating model, are expected to improve performance, increase market share, profitability and generate stronger returns over the medium term,” the company said.
Alongside gaming, hospitality revenue rose 2.8% to R1.29 billion despite an impact of around R20 million from war-related cancellations.
