FTSE 100 movers: Entain jumps on BetMGM guidance upgrade

(Sharecast News) - London's FTSE 100 was up 0.4% at 8,888.02 in afternoon trade on Monday. Entain was the top gainer on the index as the gambling and sports betting group upgraded its guidance for BetMGM following a strong first half from the US division.

The company, which owns a 50% share of BetMGM with MGM Resorts, said net revenue growth in the second quarter so far was consistent with the 34% year-on-year surge seen in the first three months of the year.

BetMGM revenues are now expected to be "at least $2.6bn", up from the previous $2.4bn-2.5bn range, it said.

Russ Mould, investment director at AJ Bell, said: "The latest update from Ladbrokes owner Entain revealed why the US is seen as the promised land for UK gambling outfits as its BetMGM joint venture came up trumps.

"The momentum seen in the first three months of the year has continued into the second quarter and, from just about inching into profitability, Entain now sees a meaningful profit coming from the venture. The upgraded guidance lends credibility to its longer-term ambitions for earnings from the venture, too.

"The company's recovery effort was undermined at the start of the year when chief executive Gavin Isaacs departed just a few months into the job but today's update will give the market encouragement that a turnaround in its fortunes is still possible under his successor, Stella David.

"Entain turned down a shares and cash offer equivalent to £28 a share from US fantasy sports betting company DraftKings in 2021 and a £14 per share offer from US its joint-venture partner BetMGM a few months earlier and subsequently pursued a questionable acquisition strategy which put pressure on the share price.

"The company still has a long way to go to convince investors staying independent was the right decision but today's news offers some hope that the US operations can be an engine of growth for the business."

Asia-focused Standard Chartered and Prudential were both higher after the release of upbeat Chinese data, which showed that retail sales growth jumped to a 15-month high in May.

FTSE 100 - Risers

Entain (ENT) 857.60p 14.13% Standard Chartered (STAN) 1,179.50p 2.97% Intermediate Capital Group (ICG) 1,966.00p 2.34% Vodafone Group (VOD) 75.38p 2.28% Smurfit Westrock (DI) (SWR) 3,211.00p 2.13% International Consolidated Airlines Group SA (CDI) (IAG) 323.40p 2.12% Prudential (PRU) 906.20p 2.10% Rentokil Initial (RTO) 355.40p 2.04% Schroders (SDR) 362.80p 1.97% IMI (IMI) 2,088.00p 1.95%

FTSE 100 - Fallers

Haleon (HLN) 390.60p -1.39% Hikma Pharmaceuticals (HIK) 2,100.00p -1.32% Fresnillo (FRES) 1,428.00p -1.18% Auto Trader Group (AUTO) 806.80p -1.10% SEGRO (SGRO) 685.80p -0.84% GSK (GSK) 1,499.00p -0.83% Marks & Spencer Group (MKS) 371.60p -0.72% WPP (WPP) 547.20p -0.69% Coca-Cola HBC AG (CDI) (CCH) 3,920.00p -0.66% Tesco (TSCO) 395.80p -0.60%