- Entain
- 16 June 2025 14:51:45
Source: Sharecast
The company, which owns a 50% share of the US joint venture BetMGM with MGM Resorts, said net revenue growth (NGR) in the second quarter so far was consistent with the 34% year-on-year surge seen in the first three months of the year.
As a result, BetMGM revenues are now expected to be "at least $2.6bn", up from the previous $2.4bn-2.5bn range, and EBITDA is forecast to be "at least $100m", compared with earlier guidance of above breakeven.
Shore Capital said that, after such a strong first quarter, an upgrade to full-year NGR was to be expected, and while comparatives get tougher in the second half, "a beat to the $2.6bn is likely".
Entain said the trading momentum at BetMGM reinforces its confidence in future growth prospects and its $500m EBITDA target for the division in the coming years – something that Shore Capital said isn't yet reflected in the current share price.
"Entain trades on a current year PER of 15x and an EV/EBITDA of c7.5x excluding BetMGM. Valuing BetMGM at c2-3x NGR would value “core” Entain on a single-digit PER. The current valuation failing to reflect the improving trends at both “core” Entain and its 50% stake in BetMGM. BUY," the broker said.
Entain shares were up 13.6% at 853.2p by 1449 BST.