Entain shares are rising as UK punters fail to beat the bookmakers
- The group reported ‘operator-friendly’ results across the wider sector
Shares of Entain rose on Monday after the gambling giant upgraded earnings estimates, despite its US operations suffering from ‘consumer-friendly’ sports results in the fourth quarter.
The group, which operates the Coral, Ladbrokes and Bwin brands, told investors it expects 2024 profits to be “at the top end of” a guidance range of £1.04 billion to £1.09 billion.
Entain recently cited “operator-friendly sports results” in its broader global operations.
The group owns the BetMGM brand in the US, where rival Flutter was also hit by gambler-friendly sports results in the final three months of last year.
Nevertheless, the group continues to expect BetMGM to report a full-year EBITDA loss of around $250 million when it confirms its results early next month.
Seize shares topped the FTSE 100 in early trading, rising as much as 9 percent before trading 2.1 percent higher at 637.2 pence by mid-morning. The shares have fallen more than 30 percent in the past twelve months.
Coral owner hails ‘operator-friendly’ sports results in fourth quarter 2024
The group’s progress has been hampered by slower-than-hoped US growth, while a series of regulatory headwinds and the possibility of a £3 billion industrial tax under Britain’s new Labor government have also not helped.
Entain will announce its annual results on March 6.
Analysts at Shore Capital maintained a buy rating and an Entain target price at 624p.
They said the timing of Entain’s statement was “likely a response to recent share price weakness”, adding that the group’s valuation figures “appear too low given construction momentum and structural growth opportunities” .
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