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In 2018 he bought Entain Ladbrokes, a legendary giant with roots leading back to horse racing in 1886.
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It has been a start-up to 2021 for the FTSE 100 betting and gambling organization
Entain,
which has accepted and rejected an $ 11 billion takeover offer from
MGM,
he lost his boss and began looking for a lift for himself in just over two weeks.
The stock has also had an earthquake starting until 2021, rising 25% on the first trading day of the year when the board said the MGM recommendation (1,383 pence per share) was “highly valued ”The company – leaving investors hoping for a higher bid. However, MGM walked away from the pursuit of the Ladbrokes owner on Tuesday, putting the shares 12% lower.
In the meantime, Entain, formerly GVC, made an offer of £ 250 million for the Swedish gaming company Enlabs, which has been challenged by shareholders holding an 11% stake. Entain stock has moved more than 2% – per side – on six of the 13 trading days so far in 2021 – but it is still 11% up to a year.
The UK betting giant took to the ship on Thursday, appointing Jette Nygaard-Andersen as chief executive – the first female female of a leading British registered gambling company. Entain’s fourth-quarter results were another cause for optimism, as the company’s trend continued with a continued 20th quarter of double-digit (NGR) online gaming revenue growth.
Full-time online NGR rose 27%, despite a break-in to live sporting events earlier in the year, and grew 41% in the three months to December 31. With closed retail stores in the UK and Europe for most of the time, the company’s success story still lies in the US, through BetMGM, its joint venture with
MGM Resorts.
Britain’s largest gambling companies have positioned themselves to take advantage of the growing US sports betting market since a Supreme Court ruling in May 2018 opened the door to legal sports betting .
BetMGM, which now lives in 11 states, has a market share of about 18% over all live markets with online revenues up 130% a year, Entain said. U.S. full-year net income is now expected to range from $ 175 million to $ 180 million, ahead of expectations.
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After launching in West Virginia, Colorado, Tennessee and Pennsylvania last year, Bet MGM will launch in Michigan on Friday. In addition to the impressive U.S. performance, Entain also saw online fourth-quarter growth in Australia, Italy, Brazil, the UK and Georgia.
Former chief executive Shay Segev, who retired last week, said: “In a very challenging year, our strong performance is driven by a business model that is very diverse across a wide range of sectors. products, brands, regions and channels. Q4 has been another successful time for us, and we are particularly pleased with the trend we are seeing in the US. ”
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The stock was 0.7% lower in early trading at 1,262 pence on Thursday, but remained about 11% higher than its price before MGM filed a bid.
Looking forward. It’s been an impressive start to the year for Entain but Thursday’s update should remind investors of the stock’s long-term promise. As more states relax about sports betting rules, Entain’s growth in the U.S. through BetMGM is, certainly, encouraging.
“More importantly, U.S. net income was ahead of expectations, which is positive as the industry has been trying to take advantage of the biggest growth opportunity in the gambling sector for a long time, ”They said
AJ Bell
investment director Russ Mold.
William Hill‘s
partnership with
Caesars Entertainment
as a result the US casino giant acquired its British alliance at the end of last year. Entain, however, rejected the advances of its American friends, confirming that the company was worth more, a view shared by many shareholders. Now is the time for Entain to prove he made the right bet – he’s off to a great start.