Latest news with #StellaDavid
Irish Times
18 hours ago
- Business
- Irish Times
Entain shares jump 13% as US sports betting powers growth
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 $2.6 billion (€2.2 billion) and earnings before interest, tax, depreciation and amortisation of at least $100 million. It had earlier forecast revenue of between $2.4 billion and $2.5 billion, 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. READ MORE 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 $22 million, 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 £16.2 billion 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. – Copyright The Financial Times Limited 2025
The Independent
a day ago
- Business
- The Independent
Entain shares surge on earnings upgrade for US joint venture
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.
Yahoo
a day ago
- Business
- Yahoo
Entain shares surge on earnings upgrade for US joint venture
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. Sign in to access your portfolio
Yahoo
04-05-2025
- Business
- Yahoo
Up 14% in a week but still at a 5-year low! Can this beaten-down UK share lead the next bull run?
The FTSE 100 rebounded strongly last week and one out-of-favour UK share led the charge. Entain (LSE: ENT) roared back into life, beating all comers to jump more than 14% in just five trading days. Despite the bounce, the stock has still fallen by around 14% over 12 months and now sits at a five-year low. So is it an unmissable bargain? I've written about the international sports betting specialist before, not always favourably. It's had a tough run: botched acquisitions, a bribery scandal in Turkey that cost £585m to resolve, and underwhelming early returns from its much-hyped US joint venture, BetMGM. After an acquisition spree, the firm's debt pile hit £3.3bn. So what's changed? The group returned to growth in 2024 and it followed this with an upbeat Q1 trading update on Tuesday (29 April). Group net gaming revenue (NGR) rose 9%, or 11% in constant currency, thanks to strong UK and US online betting volumes and some bookmaker-friendly sports results. UK & Ireland online revenue climbed 23%, while Brazil delivered 31% growth. Even BetMGM, previously a cash burner, is on track to be EBITDA-positive for 2025 after a 34% revenue jump in Q1. CEO Stella David said the company is 'driving ahead at pace', and on the evidence of the numbers, that looks fair. Entain now expects steady growth in online revenues this year and remains confident of generating more than £500m in annual cash flow in the medium term. Analysts have been positive for a while. Of the 20 covering the stock, 12 now rate it a Strong Buy and eight say Hold. Not one recommends selling. I assume most of these recommendations were made before last week's update. The 18 brokers offering one-year price forecasts have produced a median target of 947.4p. If correct, that's a potential 41% lift from today's 670.4p. Add in the 2.77% dividend yield, and investors would be looking at a possible total return of 45%. Of course, forecasts are only educated guesses. They're certainly not guarantees. There's no such thing with shares. Entain's not short on risk either. The company operates in a toughly regulated sector. In Australia, it's under investigation for possible money-laundering issues after allegedly failing to report criminal account holders. That could prove costly. Any UK-listed company with US operations is exposed too as US president Donald Trump escalates trade tensions. Entain's stock isn't exactly a bargain either. It trades at 21.5 times earnings, which leaves less margin for error if investor sentiment turns again. Investors approaching today must also weigh up the risk of short-term selling, as those who bought the dip take profits after the Q1 surge. This isn't a sector I admire, so I won't be investing. But I've tagged this as a strong potential recovery play in what's a controversial but cash-generative industry. After such a sharp fall and a strong operational rebound, the Entain share price may now build some momentum but there are no guarantees. Starting from a low base, it's got plenty of scope to recover and may be worth considering. Yet investors doing so should expect a wild ride. The post Up 14% in a week but still at a 5-year low! Can this beaten-down UK share lead the next bull run? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Irish Times
29-04-2025
- Business
- Irish Times
European shares continue rise with improving tariff sentiment
European shares extended gains to a sixth session on Tuesday, with financials giving support following earnings from HSBC and Deutsche Bank, though focus was on how companies are assessing the implications of US tariffs. Dublin The Iseq All Share Index closed up 1.62 per cent to 10,377.75. Big banking shares gained with AIB up 1.97 per cent (€5.96) and Bank of Ireland by 1.47 per cent (€10.69). Permanent TSB, however, went the other way, its shares down 3.23 per cent to €1.50. That came on the day a review from the National Competitiveness and Productivity Council found a lack of robust competition in retail banking, and interest rates for loans to non-financial corporations consistently higher than in the overall euro area. READ MORE Housing stocks, too, were mixed. Cairn Homes closed up 1.71 per cent to €1.904 while Glenveagh was down 0.37 per cent to finish at €1.63. Ires Reit was up 0.79 per cent to €1.016. The Dalata Hotel group fell 1.74 per cent to €5.08. FBD shed 2.21 per cent to finish at €13.30. Ryanair closed up 2.95 per cent, its share price now at €20.61. London British stocks ended higher, led by gains in bank shares, with markets responding positively to White House news about automotive tariffs. The blue-chip FTSE 100 index was up 0.6 per cent, marking its 12th consecutive winning session. The domestically focused mid-cap index advanced 0.4 per cent, posting its fifth straight session in green. Primark-owner Associated British Foods tumbled 9.2 per cent after reporting a 10 per cent fall in first-half profit. Banks led the sectoral gains, up 1.9 per cent. Heavyweight HSBC rose 2.6 per cent, topping the FTSE 100 index, after Europe's largest lender reported first-quarter profit above estimates and announced a $3 billion share buyback program. Among other stock-related moves, Howden Joinery gained 4.6% after posting higher revenue. Entain rose 3.3 per cent, after the Ladbrokes owner named Stella David as its permanent chief executive. Travis Perkins was the top performer among midcaps, rising 4.2 per cent. On the flip side, BP fell 2.4 per cent, after the oil major reported a deeper-than-expected 48 per cent drop in net profit. Europe The pan-European STOXX 600 index ended 0.4 per cent higher, with the aerospace and defence index leading gains. Rheinmetall jumped 8.5 per cent after Europe's top ammunition maker posted a 46 per cent rise in preliminary first-quarter sales, primarily boosted by its defence business. The heavyweight healthcare sector rose 1.2 per cent. Novo Nordisk rose 2.4 per cent after the drugmaker said it was working with telehealth firms Hims & Hers, Ro and LifeMD to sell Wegovy. Shares of HSBC rose 3 per cent after the London-based lender launched a $3 billion share buyback. Deutsche Bank advanced 5 per cent after Germany's largest lender posted a 39 per cent rise in first-quarter profit. Porsche slipped 4.1 per cent after the German luxury sports car maker slashed a series of forecasts for 2025. Global markets have stabilised of late on growing optimism over easing US-China trade tensions after enduring selling pressures earlier this month as Mr Trump's tariff salvo rattled sentiment. New York Wall Street's main indexes moved higher in volatile trading. A day after US officials said the Trump administration will move to reduce the impact of automotive tariffs, shares of Ford were only marginally higher and Tesla fell 0.6 per cent. The blue-chip Dow got a boost as Honeywell jumped 5.4 per cent on reporting a rise in adjusted profit for the first quarter. Paintmaker Sherwin-Williams gained 5 per cent after its quarterly profit beat estimates. However, General Motors fell 1.6 per cent after the automaker pulled its annual forecast due to tariff uncertainty. Coca-Cola rose 0.6 per cent after beating revenue and profit estimates, while United Parcel Service edged 0.2 per cent lower after its quarterly results. Wells Fargo gained 1.3 per cent after announcing a stock buyback program of up to $40 billion. By midday, the Dow Jones Industrial Average rose 243.76 points, or 0.61 per cent, to 40,471.35, the S&P 500 gained 13.75 points, or 0.25 per cent, to 5,542.50 and the Nasdaq Composite gained 26.30 points, or 0.15 per cent, to 17,392.44. Additional reporting: Reuters
