Entain shares plunge on softer revenue outlook
Entain shares plunged about 11% on Monday morning after the Ladbrokes owner cut its online net gaming revenue outlook for the year.
However, Entain noted a robust performance across retail and a strong performance from recent acquisitions.
(Video summary)
Entain faces setback as betting results disappoint
Shares of Entain, the owner of the Ladbrokes, took a big hit when its online net gaming revenue outlook for the year dropped. This happened because the company's sports betting results were weaker than expected, especially in Australia and Italy where there was slower growth. As a result, Entain now expects its net gaming revenue to increase by a higher single-digit percentage in the third quarter and by a low double-digit percentage for the entire year.
Challenges and potential opportunities
Despite this setback, the company is doing well in other areas, like its retail sector and recent acquisitions, such as Supersport in Croatia. If we look at the Entain price chart on the IG platform, we can see that the share price is currently down by 11.23%. Since the beginning of the year, the stock has fallen by about 27% and has been on a downward trend since August, losing around 30% during that time.
In August, things got even worse after Entain revealed its plans to deal with a scandal involving one of its former Turkish businesses and set aside £585 million to settle allegations of bribery. The company will provide an update on its trading performance in the third quarter in November.
Flutter
Entain is not the only gambling company that had a rough day. Flutter, another company in the industry, also saw a decrease in its share price on Monday, with a decline of nearly 3%.
These fluctuations in share prices show how the gambling industry can be influenced by various factors, such as betting results and scandals. It's important for investors to closely monitor these changes and consider the overall performance of the company before making any decisions.
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