Major players in the gambling industry, BetMGM and Entain, affirm their projections for 2024, despite varying financial outcomes.
Entain Expects Strong Q4 2024 Performance Amidst Industry Uncertainty
In the midst of global betting industry uncertainty, Entain plc is poised for a strong finish in Q4 2024. The gaming giant, which includes subsidiary BetMGM, has reaffirmed its full-year 2024 EBITDA guidance, with expectations to reach the higher estimate of the stated range.
The reaffirmation comes ahead of Entain's upcoming financial results report, following a series of events that have shaken the industry. Last week, Entain announced its Q3 trading update, indicating that group EBITDA will reach the upper end of its previously announced $1.27 billion to $1.33 billion guidance range. This positive outlook is attributed to more operator-friendly sports betting results.
Meanwhile, BetMGM, Entain's joint venture with MGM Resorts International, is projected to record a full-year EBITDA loss of approximately $250 million in 2024. This figure remains unchanged from the half-year outlook announced on July 29, 2023. For H2 2024, BetMGM confirmed that EBITDA is expected to remain at a similar level.
The inclusion of significant international and non-sports betting operations has aided Entain in diversifying its portfolio. This strategic move has helped the company navigate the challenges faced by the global betting industry.
However, not all industry players have been as fortunate. Some rivals, such as Flutter, have also given indications of the current market conditions. Flutter's shares dropped nearly 2% in after-hours trading following the revision of its 2024 earnings and revenue projections, due to poor NFL betting results.
Entain's CEO, Stella David, and Entain Australia & New Zealand's CEO, Andrew Vouris, have been at the helm during these turbulent times. The CEO of BetMGM is not specified in the available information.
Entain's stock has experienced significant volatility, with a 10% drop over the past few days. The company is scheduled to provide more details on trading performance and outlook for 2025 on 6 March 2025. BetMGM and Entain are also scheduled to provide more details on their trading performance and outlook for this year on 4 February and 6 March 2025 respectively.
As the global betting industry continues to face challenges, Entain's resilience and strategic moves have positioned it for a strong finish in Q4 2024. The company's focus on diversification and adaptability is a testament to its commitment to weathering the storm and emerging stronger.
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