Leading bank bullish on Entain after BetMGM lifts 2025 outlook
Last updated: 16:15 17 Jun 2025 BST, First published: 16:04 17 Jun 2025 BST
Citi has reiterated its ‘buy’ rating on Entain PLC (LSE:ENT) after BetMGM, its US joint venture with MGM Resorts, upgraded full-year 2025 revenue and earnings guidance on the back of stronger-than-expected trading in the second quarter.
BetMGM now expects net revenue of at least $2.6 billion, up from its previous range of $2.4 billion to $2.5 billion.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are forecast to exceed $100 million, more than double the consensus estimate of $47.9 million and well ahead of Citi’s own projection of$58.7 million.
The performance, which came without a boost from sports results, points to robust underlying trends in both iGaming and sports betting.
Management said revenue growth in the second quarter to date was “broadly consistent” with the first quarter, which saw a 34% year-on-year increase, well above Citi’s forecast of 15% growth for the second quarter.
The revised guidance implies BetMGM will be profitable at the EBIT level in 2025, with a potential uplift to Entain’s group results. A first-half update is scheduled for 29 July.
Citi reiterated its £12.50 price target for Entain, which owns the Ladbrokes bookmaking chain here in the UK.
Late afternoon, the stock was down 2.2% to 847p, with investors booking profits after Monday's strong gains in the share price.
