Ladbrokes owner Entain sees online gaming sales growth to beat forecasts

Ladbrokes owner Entain said e-commerce gambling turnover in recent weeks had exceeded forecasts.

The gambling giant revealed that its net revenue from online gaming in the UK and Ireland recovered and grew faster than expected during the second half of the financial year.

He said trading in the British Isles had benefited from an “accelerated recovery” in gaming and sports, with the latter benefiting from higher margins and volumes.

Entain also noted that it had a strong performance in Central and Eastern Europe and other international markets, while its retail business was in line with expectations across all regions.

The London-listed firm, whose other brands include Coral and Foxy Bingo, previously reported that it had received a significant boost from the Euro 2024 football tournament.

Following the latest business update, Entain shares rose 8.8 per cent to 695.8 pence by midday on Monday, making them the biggest riser in the FTSE 100.

However, they are still down around 40 per cent over the past 12 months amid an e-commerce slowdown caused by the lifting of Covid-related restrictions and tighter regulations in some countries to curb problem gambling.

Entain was also hit by a £615m settlement to resolve an investigation into alleged bribery at a business with a presence in Turkey that it once owned.

Shortly after agreeing the payment with the Crown Prosecution Service, Jette Nygaard-Andersen resigned as chief executive of the firm, having spent less than three years in charge.

His successor, Gavin Isaacs, took up his post last week, nine months after Nygaard-Andersen abruptly announced his departure.

Isaacs previously worked for gaming machine manufacturers Aristocrat, Bally Technologies and Scientific Games and served on the board of directors of US-based DraftKings.

Russ Mould, investment director at AJ Bell, said: “Isaacs will surely welcome a more positive backdrop as there was a big risk he would immediately step into quicksand on his first day in the job.”

He added: “So much bad news has been factored into the company’s valuation that a modicum of positivity may be enough to drive a recovery, as we are seeing in the latest trading update.”

In August, Entain reported a first-half loss of £46.9m, a huge improvement on the £448m loss it made in the same period last year.

Their joint venture BetMGM also launched a unique digital wallet in Nevada ahead of the new National Football League season, which kicked off on September 5.