Entain Plc has set aside £585 million ($745 million) for a possible settlement with UK authorities following an investigation into potential bribery offenses at its former Turkish business.
The sum would be paid over four years relating to alleged offenses under the Bribery Act 2010, Entain said Thursday.
“We are pleased to be making good progress towards drawing a line under this historical issue, which relates to a business that was sold by a former management team of the group nearly six years ago,” Chairman Barry Gibson said in a statement on Thursday. “Following a complete overhaul of our business model, strategy and culture in the last few years, the Entain of today bears no resemblance to the GVC of yesterday.”
The gambling group, formerly known as GVC, which owns the Ladbrokes brand, said it’s likely to be able to agree a resolution with the UK’s Crown Prosecution Service, pending judicial approval in the fourth quarter. It added it’s reviewed its anti-bribery policies strengthened compliance procedures.
The company also announced first half earnings which slightly beat expectations. Earnings before interest, tax, depreciation and amortization were £499 million versus an average estimate of £492 million according to analysts surveyed by Bloomberg.
Net gaming revenue was £2.4 billion versus an average estimate of £2.33 billion.
Late last month its fast-growing US joint venture BetMGM said it achieved profitability in the second quarter and it expects to become self-sustaining in the second half of the year. Citi analysts said its JV partner MGM Resorts International could make another takeover bid for Entain.
(Updates with quote, earnings from 5th paragraph)
