Entain to sell Intertrader division after £34.4m loss in 2020
FTSE 100 firm confirms discussions with “interested party” with sale expected to complete by end of 2021
Entain has revealed its ambition to sell its Intertrader financial brokerage business by the end of 2021 after the division reported 2020 losses of £34.4m.
The FTSE 100 operator confirmed its intention to sell in its 2020 financial results, having already discontinued operations.
It said: “The group continues to engage with an interested party on the sale of its financial services business (Intertrader). The directors believe that it is highly probable that an agreement and subsequent sale will be completed within the next 12 months.”
The identity of the interested party has not been disclosed.
Established in 2009, Intertrader is a margin trading broker offering multi-asset-class execution and clearing services, as well as spread betting and prime brokerage services for institutional investors.
In 2020, Intertrader recorded a loss after tax from underlying operations of £14.4m, worsening by 2,300% from the same period in 2019 (£0.6m), as well as a 124% year-on-year increase in costs to £20m.
Entain said a sale would meet standards contained within the IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’, which means the assets are not depreciated and are measured at the lower of carrying amount and fair value less costs to sell.
Discontinued operations refer to parts of a company’s core business or product line that have been divested or shut down and that are reported separately from continuing operations on the income statement.
These are listed separately on the income statement so that investors can clearly distinguish the profits and cashflows from continuing operations from those activities that have ceased.
While the Intertrader business has floundered, Playtech’s own financial services business Finalto performed exceptionally well during the pandemic, attracting a $200m takeover bid from an Israeli-led consortium.