Latest news with #StellaDavid
Daily Mail
6 days ago
- Business
- Daily Mail
Reeves issued black market warning over gambling tax plans
Entain's boss has warned Rachel Reeves to be 'very careful' amid speculation over a potential tax raid on the gambling industry. Former Prime Minister Gordon Brown has suggested a tax on the sector could pay for the Government to scrap the two-child benefit cap, helping to lift families out of poverty. But Stella David, who runs the Coral and Ladbrokes owner, warned the Chancellor that such a move could drive people to unregulated operators. David, 62, told analysts yesterday: 'Driving up tax rates has the potential of reducing the tax take because people go to the black market.' Entain yesterday said that revenues rose 3 per cent to just under £2.6billion for the first six months of the year. Its online business has been boosted by the Women's Euros and the Club World Cup while this year's Wimbledon saw the most ever betting for the annual tennis tournament.
Irish Times
16-06-2025
- 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
16-06-2025
- 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
16-06-2025
- 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
