DAVY VIEW

BetMGM has updated on Q1 trading, delivering 6% revenue growth in the quarter. Management flagged customer-friendly sports results and a heightened competitive environment in Q1. It has also updated its FY26 guidance, now anticipating 7% revenue growth at the mid-point, and has guided aEBITDA expectations to the lower end of the range ($300-350m). Although this does not represent a significant downgrade to Entain group forecasts, reducing revenue guidance will not be well received – particularly in the context of the heightened nerves relating to the perceived prediction markets threat.