ENTAIN Share Price Rises 50% in the last Six Months!

[Chief Stipe]

Entain shares jump 13% as US sports betting powers growth

www.ft.com

Https://bitofayarn.com

Shares in troubled gambling group Entain jumped 13 per cent on Monday after its US sports betting business upgraded its annual forecasts, in an early boost for new chief executive Stella David.

Second-quarter trading at BetMGM, Entain’s US joint venture with New York-listed MGM Resorts International, has been “broadly consistent” with the 34 per cent growth seen in the first quarter, the company said on Monday.

BetMGM now expects to report annual group revenues of at least $2.6bn and earnings before interest, tax, depreciation and amortisation of at least $100mn. It had earlier forecast revenue of between $2.4bn and $2.5bn, and “positive” ebitda.

David, Entain’s former chair, was appointed permanent chief executive of the FTSE 100 company in April after performing the role in an interim capacity since February.

Today’s upgrade showed she had been able to deliver ahead of expectations, said Barclays analyst Pravin Gondhale. “This is a good sign for them . . . the strategy is working,” he said.

David plans to revive the group’s fortunes by growing its share in US online gaming and sports betting — a market that was only legalised in 2018 — as well as tapping into the fast-growing sports betting market in Brazil, another new market.

In the first three months of the year, BetMGM, which was formed in 2018, reported earnings before interest, tax, depreciation and amortisation of $22mn, its first quarterly profit. Last quarter’s strong performance was driven by growth in sports betting and online gaming, the company said.

Entain, which owns Ladbrokes and Coral, provides the technology that sits behind BetMGM, while MGM Resorts International handles the venture’s customer-facing activities.

Shore Capital analyst Greg Johnson said Entain’s valuation was “failing to reflect the improving trends” both at the group level and in the US.

 

David is striving to rebuild investor confidence in Entain after a turbulent period characterised by corporate governance concerns and a series of executive departures.

The company signed a deferred prosecution agreement in the UK over allegations it failed to prevent bribery in Turkey, while Australia’s financial crimes watchdog launched legal proceedings against Entain, citing breaches of anti-money laundering rules.

Entain said previously that it took the allegations “extremely seriously” and that it was enhancing its compliance arrangements.

The company’s languishing share price frustrated investors and left the UK-headquartered group vulnerable to a takeover. The US’s second-largest gaming company, DraftKings, made a £16.2bn bid for Entain in 2021, before walking away. Activist investors, including US hedge funds Eminence Capital and Sachem Head Capital Management, have also circled the company.

[Chief Stipe]

[Chief Stipe]

So much for the doom and gloom aka @JJ Flash.

Time to sell @curious after buying at the low?

[curious]

Not sure. What do you reckon? Sell half maybe?

 

[Murray Fish]

2 hours ago, Chief Stipe said:

So much for the doom and gloom

It seems me withdrawing my funds from my TAB acc didn't have much effect!

[Chief Stipe]

1 hour ago, curious said:

Not sure. What do you reckon? Sell half maybe?

 

I'm not sure either.  The person I recommended buy to is very happy.  At the price a 50% increase is a decent wad of dosh.  Enough for you to buy a decent horse and train it with Waller.

[Chief Stipe]

As ENTAIN are a shareholder in an online Casino what are the chances they will get one of the licenses here?

https://www.betmgminc.com/who-we-are/

[Chief Stipe]

I see Morgan Stanley give ENTAIN their highest rating i.e. AAA.

[curious]

1 minute ago, Chief Stipe said:

I see Morgan Stanley give ENTAIN their highest rating i.e. AAA.

Might be time to get out. I'm  a contrarian. Wasn't it after the battle of Waterloo that Rothschild said something like, the time to buy is when there's blood in the streets even if it's your own?

[Chief Stipe]

16 minutes ago, curious said:

Might be time to get out. I'm  a contrarian. Wasn't it after the battle of Waterloo that Rothschild said something like, the time to buy is when there's blood in the streets even if it's your own?

Perhaps but the projected year on year EBITDA for MGMBet is US$500m and ENTAIN have always paid dividends to shareholders even when they perhaps shouldn't have.