Entain plc and its subsidiary BetMGM have reiterated their full-year 2024 EBITDA guidance despite recent challenges in the global betting industry. The announcement comes ahead of their financial results report, with both companies showcasing resilience amidst market turbulence. Entain’s strong portfolio diversification and BetMGM’s steady performance have been pivotal in navigating industry uncertainties.
BetMGM, a key player in the US sports betting market, has confirmed it expects an EBITDA loss of approximately $250 million for 2024. This figure reflects the company’s ongoing investment-heavy strategy aimed at long-term growth.
In the second half of 2024, BetMGM’s EBITDA is projected to remain consistent with the $123 million loss recorded in the first half. Despite customer-friendly US sports betting results in Q4, BetMGM has chosen not to revise its guidance, staying aligned with its initial forecasts.
In contrast, Entain’s parent appears much better positioned. Entain PLC reported on its Q3 trading update that group EBITDA for 2024 was estimated at the high end of its previous guidance range of $1.27 billion to $1.33 billion. This is an optimistic estimate and shows strong performance by international and non-sports betting operations, which has helped to keep the company relatively protected from market distortions.
Entain credits operator-friendly sports betting results in Q4 for its ability to hit the higher end of its guidance. The company’s diversified portfolio, which spans multiple regions and sectors, has played a crucial role in maintaining stability during turbulent times.
The global betting industry faced massive challenges over the past couple of months. The market was very volatile to both Entain and its competition. Flutter Entertainment, another huge company in this industry, restated its revenues due to awful NFL betting. As a result, Flutter shares plunged by approximately 2 percent after-hours trading in order to explain how poor results from sports negatively affect the overall market.
Entain, too, has not been immune to the impact. The company’s stock saw a decline of nearly 10 percent in recent days, highlighting investor concerns amid broader market pressures.
As the industry grapples with ongoing uncertainties, both Entain and BetMGM remain focused on their long-term goals. The companies plan to release further details on their financial performance and outlook in the coming months, with BetMGM scheduled to provide an update on 4 February and Entain on 6 March 2025.
Welcome to Gambling Consulting Authority (GCA) - Your Strategic Partner in Gambling Industry Advancement
