SHARE OF THE WEEK: Entain one of three gambling stocks updating performance
Investors in gambling stocks will have marked their calendars this month as three heavyweights prepare to update the market on their performance thus far this year.
First up on Wednesday is Flutter, the owner of Betfair and Paddy Power. The following day, it will be Entain’s turn, followed by 888’s appearance the following Tuesday.
Entain is a particular favorite among retail investors, although it faced controversy in May when it announced it was expecting a significant financial penalty following an investigation by HM Revenue and Customs into its business practices in Turkey.
The Ladbrokes owner stated that potential offenses included breaching bribery law and possible misconduct involving former employees and third-party suppliers.
Despite this ongoing issue, the City responded positively to Entain’s first-quarter results in April, which showed an 11% increase in revenue.
In mid-June, shares declined by 8% after the company issued new stock at a small discount and raised around £600 million to acquire the Polish sports-betting operator STS.
Since then, Entain has recovered its losses, partially due to strong results from its joint US business. BetMGM recently announced that its revenue for this year is on track to reach the upper end of its forecasts, ranging from £1.41 billion to £1.57 billion ($1.8 billion to $2.0 billion).
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