Entain PLC (LSE:ENT) shares made a subdued start on Tuesday, even after its jointly-owned BetMGM business delivered an upgrade to its full-year guidance.
Much of BetMGM’s strong performance appears already priced in, with Entain shares up 44% since January and 11% over the past month.
In its second quarter and first half update, the online gaming group reported net revenue up 36% and 35% year on year, respectively, with first-half underlying earnings (EBITDA) at $109 million, a $232 million improvement on last year.
Sports betting revenues surged 56% in the quarter, while iGaming was up 29%, reflecting successful marketing and product initiatives.
BetMGM now expects to generate at least $2.7 billion in net revenue and $150 million in EBITDA for 2025, expressing greater confidence in reaching $500 million in EBITDA in the next few years.
Stock in Entain opened 0.5% higher at 998.2p.