Entain falls as BetMGM joint-venture sees profit at lower end of guide
Entain PLC shares slipped on Tuesday after its BetMGM joint-venture warned of an annual outturn at the bottom end of its guidance range and suggested a USD500 million yearly profit aim will materialise later than planned.
Entain shares were 0.8% lower at 569.80 pence each in London on Tuesday afternoon, but were up 0.5% shortly before the BetMGM update around midday.
BetMGM, which the Ladbrokes and Coral operator jointly owns with New York-listed MGM Resorts International, now expects net revenue and adjusted earnings before interest, tax, depreciation and amortisation for 2026 at the lower end of its guidance ranges.
Its revenue range is USD2.9 billion to USD3.1 billion, with its adjusted Ebitda view at USD300 million to USD350 million. In 2025, BetMGM achieved revenue of USD2.80 billion and adjusted Ebitda of USD220 million.
BetMGM added: "BetMGM remains confident in delivering adjusted Ebitda of USD500 million in the coming years. However, given the current market environment including impact of prediction market regulatory complexity, we believe it is prudent to assume the timing of delivery will extend beyond current 2027 expectations."
In the second quarter, adjusted Ebitda fell 15% on-year to USD74 million from USD86 million, though net revenue edged up 2.7% to USD711 million from USD692 million.
"Aligned with sports calendar and working capital seasonality, including World Cup and Alberta launch, no excess cash distributions were made to BetMGM's parents during Q2," it added.
For the whole of the first half, net revenue rose 4.2% year-on-year to USD1.41 billion, though the adjusted Ebitda fell 9.2% to USD99 million.
BetMGM Chief Executive Officer Adam Greenblatt said: "BetMGM has started 2026 well and continues to execute with discipline. Our underlying player fundamentals remain healthy, and we are generating positive cash flow and adjusted Ebitda, enabling us to continue to invest in our highest return opportunities. While our industry faces regulatory complexity and an increasingly competitive environment, we remain agile and committed to our strategy that is delivering sustainable and profitable growth.
"Looking ahead, we will continue to prioritise our areas of strength, in particular leveraging our market leading iGaming offering across multi-product states, our omnichannel advantage in Nevada, and serving our higher-value customers. These strengths, combined with our disciplined strategic execution, underpin our confidence in the long-term outlook of our business."
The equally-owned BetMGM joint-venture was established back in 2018.
In June, digital and print publisher People Inc announced an USD18 billion proposal to buy MGM Resorts International.
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