DAVY VIEW

Entain has reported a good set of H126 numbers, with online revenue growth at the top end of the range and a robust margin performance. The UK & Ireland showed strong online performance with double-digit growth in both sports and gaming. It has reiterated its outlook for the year. This is a positive update from Entain with improving momentum in Q2. In the context of its current valuation, which is at a substantial discount to market transaction multiples, this should be well received. Focus on the management call this morning will likely be on any other potential areas of value realisation post the CEE transaction and expectations for mitigation potential should there be any changes to retail machine duty.