Unikrn Faces Restructuring as Entain Cuts B2C Operations
LISTEN TO THIS ARTICLE:Gambling giant Entain has announced its decision to scale back B2C operations within its Unikrn esports betting division as it embarks on a strategic realignment of its esports services.
Entain acquired Unikrn in 2021 to improve its presence in the esports industry. It then relaunched the brand in December 2022 with plans to expand into additional regulated markets globally.
However, Entain appears to have slowed down this initiative less than a year after the relaunch. According to the company, this is due to its decision to reduce its direct-to-consumer operations within the esports brand.
“This is to ensure that our business is structured as effectively as possible and so that we can best deliver on our strategy and growth plans. Unikrn has developed an industry-leading offer around esports betting. We see significant opportunities to leverage these capabilities through our existing global brands.” Entain stated.
The company didn’t provide any additional information regarding Unikrn and the brand’s future.
M&A Strategy
The development follows Entain’s latest acquisition of Angstrom Sports, a specialist in sports modeling, forecasting, and analytics. The deal, worth £230.0m (€247.2m), aligns with the company’s ongoing M&A strategy to expand its market presence and diversify its products and services.
In the past months, Entain has acquired other businesses like BetMGM, Polish sportsbook operator STS Holding, and Tiidal Gaming NZ, the parent company of esports betting developer Sportsflare.
Fall in Share Price
Despite the latest acquisitions, Entain’s share price dropped 14% in September, reflecting a 30% decrease compared year on year. The company attributed the fall in its share price to several causes, such as regulatory challenges, restricted growth, and unfavorable sporting results in September 2023.
However, the operator still believes it will meet its full-year 2023 EBITDA guidance, estimated to be in the range of £1 billion to £1.05 billion.
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