Entain PLC (LSE:ENT) shares could be set for a strong run after Citi highlighted an impressive performance from BetMGM, its US joint venture, and another upgrade to the company’s full-year outlook.
BetMGM’s second-quarter net revenue came in at $692 million, up 36% year-on-year and comfortably ahead of market expectations.
The online sports betting (OSB) division also delivered a standout quarter, with net revenue up 56% and net win margins hitting 6.6%, both beating Citi’s forecasts.
Citi’s note points out that Entain’s first-half EBITDA (a measure of operating profit) came in 89% above consensus, and management has raised its guidance for the full year yet again.
The company now expects net revenue of at least $2.7 billion and EBITDA of at least $150 million, well ahead of previous forecasts.
The note adds that even with expected costs from the upcoming Missouri launch and higher taxes in New Jersey later this year, Entain is on track for a record 2025.
With a strong showing from BetMGM and a string of upgrades, Citi expects a positive reaction from investors, noting the significant outperformance on profit and continued momentum in the core business.
Entain shares rose 1.25% to 1,016p.