Published On: Mon, Aug 8th, 2022

Gambling giants betting US moves will maintain profits | City & Business | Finance


Shareholders too will look for robustness as they await a White Paper which may add curbs to the sector. Both firms have shielded themselves somewhat from the shaky UK market with strong growth in the US where they benefited from looser betting laws in many states. Entain, which also owns Coral, said last month online gaming revenues dipped over the first half of 2022. Charlie Williams, equity research assistant at Hargreaves Lansdown, said focus will turn to how profits for the period have fared, when it updates the market on Thursday.

He said: “The impact on profit should come to light next week. Attention will be focused on whether management believe the previous spending habits will remain intact.

“If not, online revenue could continue to decline into the future.”

Concerns over lower demand from punters means shares are about 30 percent lower over the past three months, despite a rebound in retail revenues following the reopening of shops after pandemic curbs were lifted.

Investors will also be hopeful that a bumper sporting calendar for 2022, including the winter World Cup in Qatar, could provide a much-needed boost to sports betting.

Entain’s US arm BetMGM will also provide solace, with annual growth tipped at more than 50 percent.

He said: “The impact on profit should come to light next week. Attention will be focused on whether management believe the previous spending habits will remain intact.

“If not, online revenue could continue to decline into the future.”

Concerns over lower demand from punters means shares are about 30 percent lower over the past three months, despite a rebound in retail revenues following the reopening of shops after pandemic curbs were lifted.

Investors will also be hopeful that a bumper sporting calendar for 2022, including the winter World Cup in Qatar, could provide a much-needed boost to sports betting.

Entain’s US arm BetMGM will also provide solace, with annual growth tipped at more than 50 percent.

Flutter will also find reason for optimism in its Stateside operations, through its FanDuel sportsbook business.

The gambling firm is set to announce, on Friday, continued strong growth in the division which noted a 45 percent rise in the first quarter.

It has continued with its heavy investment internationally, with about one billion dollars (£830million) being pumped into promotions, sales and marketing across the US business in the course of last year.

Flutter also said it has secured regulatory approval for its €1.9billion (£1.6billion) takeover of Italian gaming group Sisal.

That business saw 58 percent sales growth and a 51 percent earnings increase in the first half of the year.



Source link