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Jul 8 2021, 08:10 IST/BST
Entain’s Q2 trading is materially stronger than expected, with Online growth remaining at elevated levels (+22% versus Davy +4%). It means that FY21 EBITDA is now expected to be £850-900m, suggesting a +5% upgrade to consensus at the mid-point of the range (+7.5% to our own estimate). We expect Q2 exit rates to be a key focus on this morning’s call as well as the degree to which the upgrade is driven by a better-than-expected H1 performance (as opposed to improved expectations for the second half of the year). This will ultimately determine the degree to which we adjust our FY22 estimates. Of more importance to the longer-term thesis is BetMGM’s performance which continues to improve (market share 24% versus 19% previously), with strong sequential growth (+15%) — better than expected even when its more balanced US product mix is considered.
Jul 8 2021, 08:10 IST/BST