British gambling group Entain said today it now expects annual core profit to be towards the top end of its earlier forecast of £1 billion to £1.1 billion, boosted by a strong third-quarter performance.
Entain's net gaming revenue grew 8% in the most recent quarter, helped by betting on popular sports events such as the English Premier League and the National Football League.
Despite the positive results, the Ladbrokes owner is facing challenges from rising competition and regulatory scrutiny across several US states, and navigating a regulatory landscape with varying requirements in different jurisdictions.
Entain shares on Monday slid 15% over speculation that Britain's finance minister Rachel Reeves would likely increase some taxes on gambling companies in her maiden budget on October 30, potentially pressuring Entain by raising operational costs.
After the forecast update today, its shares were up 3.6% at 737 pence. The company did not mention the possibility of new taxes on the sector.
Entain has been prioritising the rapidly growing US market, its biggest, where its joint venture with MGM Resorts, BetMGM, faces stiff competition from rivals including Flutter Entertainment-owned FanDuel and Boston-based DraftKings.
For the full year, underlying earnings before interest, taxes, depreciation, and amortisation are expected to come in at £1.06 billion, according to company-compiled consensus.
The Isle of Man-headquartered company also said it will not pursue the sale of its Georgian brand Crystalbet following a strategic review.
