Entain shares are rising as UK punters fail to beat the bookmakers

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.

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” .