Bookie Entain PLC (LSE:ENT) is reporting its 2023 annual results on Thursday 7 March with analysts still not sure that the mix of super growth in the US and dull as ditchwater UK betting shops works.
UBS expects group revenue of £4.6 billion, group underlying profit [EBITDA] of £956 million and a share of joint venture income [BetMGM] of minus £42 million.
BetMGM reported in early February that 2023 net revenue came in at $1.96bn with an EBITDA loss of minus US$67 million.
A few weeks earlier, Entain received a downgrade from analysts at Barclays, who said that to justify the current share price the online arm needs to be doing better.
"The Ladbrokes, Coral and BetMGM partner needs online to return to market growth rates or better and US share to stabilise (and grow)," says the broker, but neither is a given, it added.
Meanwhile, there is little free cash flow and high debt ratios restrict M&A.
"A new CEO could address the balance sheet and the shares appear cheap but the risk-reward is fairly balanced."