Investing.com -- Entain (LON:ENT)’s first-quarter results beat expectations, with strong online growth and the appointment of Stella David as permanent CEO, pushing shares up by 3% on Tuesday.
The sports betting and gambling company reported a 10% increase in online net gaming revenue (NGR) in constant currency, exceeding Jefferies’ 7% forecast and its own full-year guidance for mid-single-digit growth.
Retail NGR rose 2%, in line with expectations, while overall group NGR (excluding the U.S.) grew 8%.
Performance was led by a standout 23% increase in online NGR in the UK & Ireland, driven by a 21% rise in volumes.
Brazil saw a 31% increase, while Australia posted an 8% decline, primarily due to customer-friendly sports results. Central and Eastern Europe (CEE) saw 13% growth.
Entain reaffirmed its full-year guidance, including mid-single-digit growth in online NGR and a 25% EBITDA margin, with an EBITDA target of £1.1 billion for fiscal year 2025, in line with market expectations.
The appointment of Stella David as permanent CEO was praised by analysts at Morgan Stanley (NYSE:MS) and Jefferies, who see her as providing stability and strategic continuity after her role as interim CEO.
Jefferies noted that Entain’s strong UK & Ireland performance exceeded expectations, while retail NGR came in slightly below forecast at 2%.
The brokerage flagged the undervaluation of Entain’s 50% stake in BetMGM, estimating its fair value at £13 per share based on a sum-of-the-parts analysis.
Jefferies also pointed to the attractive valuation of the company, trading at 7.8x EV/EBITDA for FY25.