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Gannett and BetMGM enter strategic sports betting partnershi

Published 16/09/2024, 14:30
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NEW YORK - Gannett Co., Inc. (NYSE: GCI), the media conglomerate, has formed a multi-year strategic partnership with BetMGM, a prominent sports betting and iGaming operator. As the preferred online sportsbook and casino partner for USA TODAY Sports, BetMGM will provide sports betting odds and betting information across the USA TODAY Network (LON:NETW), which spans more than 200 local markets in 43 states and includes over 300 digital news and media brands.


The partnership, announced today, will integrate BetMGM sports betting odds into USA TODAY Network's content, offering readers access to betting odds, moneylines, spreads, and over/unders for games. Additionally, a "Bet Now" feature from BetMGM Sportsbook and BetMGM Casino will be included on website footers throughout the network's publications.


Michael Reed, Gannett Chairman and CEO, expressed confidence that the collaboration with BetMGM will drive audience growth and engagement, especially during the football season, and anticipates an immediate increase in content monetization.


BetMGM CEO Adam Greenblatt highlighted the partnership's potential to reach a vast audience on both local and national levels, enhancing fan engagement with integrated odds and insights into Gannett's content.


The agreement also involves Gambling.com Group, which will provide BetMGM sports betting offers and expert insights to the USA TODAY Network audience in regulated states, leveraging its proprietary advertising technology.


BetMGM continues to emphasize responsible gaming as it expands into new markets and introduces new features. The company provides resources to help customers play responsibly, such as GameSense, an industry-leading program developed by the British Columbia Lottery Corporation and licensed to MGM Resorts (NYSE:MGM).


This partnership is based on a press release statement, and as with all strategic business moves, it contains forward-looking statements that are subject to various risks and uncertainties. These statements are not guarantees of future performance, and actual results may differ.


Gannett, known for its national publication USA TODAY and local media organizations in the United States, along with its subsidiary Newsquest in the United Kingdom, aims to empower and enrich communities through its media and digital marketing solutions.


BetMGM, a collaboration between MGM Resorts International (NYSE: MGM) and Entain Plc (LSE: LON:ENT), is a leader in the online gaming industry, offering sports betting and online gaming through its brands since its inception in 2018.


In other recent news, Entain PLC's financial outlook has shown promise, with UBS raising the company's price target to £6.80 due to a positive performance outlook for H2. The core online business of Entain is projected to continue its upward trajectory, supported by recent releases and anticipated tailwinds in the UK market. UBS anticipates that Entain could reach the higher end of its guided EBITDA range of £1.04 billion to £1.09 billion, indicating a robust financial outlook.


However, Berenberg has lowered its price target to GBP10.20, citing downside risk, while maintaining a Buy rating on the stock. Despite challenges with earnings downgrades and market share losses, Entain's recent increase in ex-US EBITDA guidance was seen as a positive development. Berenberg suggests that the launch of Angstrom in the US could enhance Entain's product and technology offerings, potentially leading to better performance for BetMGM.


Goldman Sachs (NYSE:GS) has also adjusted its stance on Entain, upgrading the stock from Sell to Neutral, after a period of underperformance. The firm set a new price target of £7.10, acknowledging that Entain's fundamentals are weaker compared to its peers within the gaming industry. Despite this, the revised rating suggests that the current valuation of Entain's shares now more accurately represents the balance of risks and rewards. These recent developments provide investors with a glimpse into the evolving landscape of Entain's financial performance.


InvestingPro Insights


As Gannett Co., Inc. (NYSE: GCI) enters into a strategic partnership with BetMGM, it's also valuable for investors to look at the latest financial metrics and market performance of Entain Plc (LSE: ENT), BetMGM's co-parent company. With a market capitalization of $6.1 billion, Entain is a significant player in the Hotels, Restaurants & Leisure industry. The company's gross profit margin stands impressively at 81.34% for the last twelve months as of Q2 2024, indicating efficient operations and strong pricing power in its sector.


Investors might also take note of Entain's recent market performance. The company has seen a strong return over the last month, with a 15.1% increase in its stock price. This momentum is further reflected in a 9.12% return over the past week. These figures suggest that the market is responding positively to the company's recent activities and potential growth prospects.


One of the InvestingPro Tips highlights that Entain has raised its dividend for three consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, analysts predict the company will be profitable this year, which could be a turning point for investors considering the stock's previous lack of profitability over the last twelve months.


For those looking for more in-depth analysis and additional InvestingPro Tips, Entain has a wealth of information on the InvestingPro platform, including tips on its financial health and future performance prospects. There are currently 8 additional InvestingPro Tips available for Entain, which can be accessed by visiting https://www.investing.com/pro/ENT. These tips could provide investors with a more comprehensive understanding of the company's potential in the context of this new partnership and the evolving online gaming industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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