Entain shares dip on European regulatory warning

The outlook for Entain in 2023 has caused concerns among investors on Thursday as group profit after tax dumped 88% to £33m due to amortisation of acquired intangibles and exceptional costs.

Underlying EBITDA grew 13% to £993.2m.

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The company’s own warnings of regulatory headwinds in 2023 may prove a hurdle for higher profits in the coming year as the group pins hopes on growth in the US.

The group’s 50% stake in US joint venture BetMGM enjoyed an 18% uplift in net gaming revenue in 2021, outperforming group net gaming revenue of 12%.

The impact of regulatory changes in the UK was responsible for slow group online net gaming revenue which dipped 1%.

“Entain has been facing mounting investor pressure, and rising player protection measures in Europe are not going to help. The business opportunity in America looks much brighter.”

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“Nebraska and Maine are likely to go live by H2 2023. Georgia, Kentucky, and Minnesota are possibilities, whereas Missouri and North Carolina could stall. This could deliver 15-20% TAM growth.”

“Entain’s biggest opportunity is in the online sports betting space. The Super Bowl betting record proves huge potential. Our experts say that Entain also needs to move beyond the NFL season and capitalize on other events throughout the annual sporting calendar.” 

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