Ladbrokes and Coral gambling giant Entain has seen shares jump higher after hiking the annual earnings outlook for its US joint venture BetMGM.
FTSE 100 listed Entain said it now expects BetMGM – which it jointly owns with MGM Resorts International – to deliver full-year underlying earnings of at least 100 million US dollars (£73.8 million) thanks to strong sports betting and iGaming trading.
Shares in Entain surged more than 8% higher on Monday morning thanks to the earnings upgrade.
BetMGM is now set for revenues of at least 2.6 billion dollars (£1.9 billion), having seen the ongoing “positive momentum” from the first quarter carry through to the second quarter so far.
It had previously guided for “positive” earnings and for revenues of between 2.4 billion dollars (£1.8 billion) and 2.5 billion dollars (£1.8 billion).
Entain said BetMGM’s trading was “broadly consistent” with the 34% rise in net revenue growth notched up in the first quarter.
It said: “BetMGM remains excited about the significant opportunities ahead.
“Its strengthened business, revised strategic approach, and performance momentum further reinforce its confidence in future growth prospects and pathway to 500 million US dollars (£368 million) Ebitda (earnings before interest, taxes, depreciation, and amortisation) in the coming years.”
Entain recently announced that former chairwoman Stella David will become its permanent chief executive, having taken on the role on an interim basis when Gavin Isaacs resigned in February after just five months in the role.
The group has now had four bosses in the past five years.
Entain has seen its stock market value plummet in recent years amid a series of legal woes.
In 2023, it was hit with a £585 million penalty agreed with HM Revenue & Customs to settle charges related to alleged bribery offences in Turkey.
The group was also taken to court by Australia’s financial crime regulator late last year over allegations it breached anti-money laundering rules in the country.
The firm’s market value had slumped since reaching a high in 2021.
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