Entain Shares Gain as it Eyes a World Cup Boost

Entain (LON: ENT) shares rose Thursday after the company released a third-quarter trading update, reiterating guidance as it looks for an end-of-year boost from the World Cup.

Entain's share price is up over 2% at the time of writing but down 35% in 2022.

The sports betting and gaming company said it has healthy momentum heading into the year-end, with online expected to grow year on year in the fourth quarter, benefitting from the easing of prior year comparators and the World Cup. As a result, it expects FY2022 EBITDA to be between £925 million and £975 million, in line with previous guidance, representing growth of 5% to 10% compared to the prior year.

Also Read: The Top Defense Stocks To Buy in 2022

“We have healthy momentum across the business and look forward to a strong finish to the year which includes the World Cup,” commented Entain Chief Executive Jette Nygaard-Andersen.

Entain's third-quarter net gaming revenue increased by 2% but was flat on a constant currency basis. Online net gaming revenue rose by 1%, down 2% on a constant currency basis, broadly in line with expectations.

Meanwhile, the company achieved a record level of active customers, which increased by 6% year-over-year.

In the US, the company said it had seen a successful start to the NFL season with third-quarter net gaming revenue of just over $400m, up approximately 90% year-over-year, with same-state revenues up around 50% year-over-year.

“Our business continues to perform well with good underlying momentum across the group, including in BetMGM. This illustrates the effectiveness of our growth strategy, the unique capabilities of the Entain platform, and the underlying strength of our diversified global business,” added Nygaard-Andersen. “Looking ahead, we remain vigilant of the economic backdrop. However, our diversified revenue base and robust business model enable us to remain confident in our ability to deliver on our growth and sustainability strategy.”