Entain shares jump as UK arm returns to growth on Olympics and Euro boost
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Shares in Ladbrokes owner Entain jumped as much as 7.6 per cent in early trade after investors were cheered by news that a sport-heavy summer drew in extra punters.
Online net gaming revenue (NGR7 ) has continued to grow faster than expected, the London-listed gambling firm said in a trading update on Monday, as the Paris Olympics and Euro 2024 boosted its coffers.
Entain’s UK and Ireland business returned to year-on-year growth ahead of forecasts after “accelerated recovery” in its gaming and sports divisions, with stronger volumes and margins from sports NGR.
Although management has not raised guidance, it “may indicate that marketing and product development efforts are bearing fruit which have helped drive more players to Entain’s online betting and gaming websites,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Shore Capital analysts said the update highlights the “improving proposition” of Entain’s US joint venture BetMGM, which they said is arguably discounted at 1x NGR.
The brand has launched a number of new features ahead of the 2024 NFL season, a hugely popular event among betters globally, such as improved parlay and player prop bet options and streamlined live betting.
It comes after the bookie, which also owns Coral, recently said its strategy is “bearing fruit” as it posted strong interim results.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose five per cent year on year to £524m. while total NGR jumped six per cent to £2.56bn.
Although NGR fell six per cent in the UK and Ireland region, it was boosted by favourable Euros 2024 results.
New chief Gavin Isaacs joined Entain last week, while former boss Stella David will succeed Barry Gibson as chair at the end of September.