UK gambling group Entain expects 2024 core profit to be at the top end of its forecast range, it said today, helped by favourable sports results in the fourth quarter in the UK and Ireland.
The company's shares rose nearly 9% in early trade, with analysts at Jefferies saying the reiteration of full-year guidance for both Entain and its US BetMGM business should be a positive catalyst.
Entain maintained its forecast for a $250m core loss at its BetMGM joint venture with MGM Resorts in the US, where sports results favoured its customers.
Rival Flutter Entertainment, the world's largest online betting company, expects a hit to its 2024 earnings as American football gamblers enjoyed an unprecedented winning streak.
Flutter, which owns Paddy Power, had also added that the NFL season to date has been the most customer-friendly since the lifting of a US ban on sports betting in 2018, with the highest rate of NFL favourites winning in almost 20 years.
Shares in Entain, which had fallen more than 30% in the past year, lost a further 12% after Flutter's warning in the US, where a ban on sports betting was only lifted in 2018.
The owner of Ladbrokes now expects core profit at the top of its forecast range of £1.04 billion to £1.09 billion.
"While the company remains focused on improving its offering across key markets, including UK, US, and Brazil, we think that Entain will need more time - and investments - to turn its overall trading and profitability momentum around," analysts at JPMorgan said in a note.
Entain is expected to provide its 2025 forecast on March 6.
