Shares in Entain PLC (LSE:ENT) surged 8.5% higher to 815p as the Ladbrokes and Sportingbet owner hiked the revenue and profit outlook for its US joint venture, BetMGM, after an extended period of strong wagering on sports and online casino games.
For the full-year, the FTSE 100 group said it now expects net revenue from its 50% owned JV to run up to "at least $2.6 billion", above the top end of its previous guidance range of $2.4-2.5 billion, with online sports and iGaming both predicted to make positive contributions.
At the bottom line, underlying earnings (EBITDA) from the business half owned by MGM Resorts International (NYSE:MGM) are seen surpassing $100 million, compared to its previous indication that the JV would be "EBITDA positive".
BetMGM's positive momentum in the first quarter has continued into June, with net revenue growth said to have been "broadly consistent" with the 34% previous quarter.
As well as bolstering confidence for the full year, Entain said BetMGMs "strengthened business, revised strategic approach, and performance momentum", reinforces confidence in reachig $500 million of EBITDA in the coming years.
Entain shares hit a five-year low below 430p in early April, before the postive Q1 update sparked a run that saw the price recover to close to a two year high.
Analysts at Shore Capital said the previous full year NGR guidance had implied a 17% growth for the balance of the year, with the circa 30% during the second quarter to date, "would still imply only modest progression in the second half", with comparatives from last year getting tougher as the year progresses.
** Update: Adds share price, analyst comment **