Shares in Entain PLC (LSE:ENT) rose 4.7% to a two-month high above 615p after the Ladbrokes and Foxy Bingo owner reported steady first-quarter growth, with rising betting volumes offset by weaker sports margins.
The group said net gaming revenue increased 3% in the three months to March, in line with management's expectations, supported by an 8% rise in volumes.
Online revenue rose 5%, driven by 9% growth in gaming, while sports revenue slipped 1% as margins fell by 1.3 percentage points. Revenue from bookmaking stores declined 3%.
Performance was strongest in the UK and Ireland, where online revenue rose 13%, alongside double-digit growth in Australia. International markets were more mixed, with customer-friendly sports results weighing on revenue.
US joint venture BetMGM reported revenue growth of 6% to $696 million, with adjusted earnings of $25 million.
Chief executive Stella David said: "We entered 2026 with strong momentum, which has continued in Q1."
She reiterated full-year guidance, expecting online revenue growth of 5-7% and remaining comfortable with market expectations for earnings.
The group said it remains on track to generate at least £500 million of annual cash flow by 2028, as it focuses on sustainable growth and improving profitability.
BetMGM's guidance was recently updated to reflect year-to-date performance and revised outlook expectations, with revenue of $2.9-3.1 billion, with adjusted EBITDA expected to be towards the lower end of its existing guidance range of $300-$350 million.
Broker Peel Hunt said: "Performance was driven by strong online gaming (+9%) and volume growth, but sports margin headwinds and Retail weakness persisted, consistent with prior trends."
** UPDATE: Adds share price and broker comments **