Entain Shares Drop 14% amidst Regulatory Challenges
The share price of the gambling operator Entain has dropped 14% over the last two days, leaving it more than 30% lower than its value this time last year.
Regulatory Pressures Take Their Toll
In recent times, Entain has been busy acquiring a number of companies. However, it has also come under a great deal of regulatory pressure. For example, in 2022, the United Kingdom Gambling Commission (UKGC) imposed an enormous £16 million settlement against the company due to failings in its anti-money laundering and safer gambling measures.
Entain has said that the fall in its share price has a number of causes. First, it argues that continuing regulatory challenges have lasted longer than expected and restricted growth. It also says that unfavorable sporting results in September 2023 hit its financial performance.
Optimism Remains for the Future
Nonetheless, Entain has a positive outlook. Jette Nygaard-Andersen, the company’s CEO, has highlighted the fact that they are continuing to attract more players and that they are continually working to improve their offerings.
Entain recently acquired SuperSport, Retail and BetMGM, all of which have performed well. BetMGM, in particular, is forecast to achieve positive EBITDA in H2 2023. Furthermore, the company still expects growth in its online net gaming revenue (NGR) for the full year 2023.
As such, Entain has said that it will meet its full-year 2023 EBITDA guidance, which will be in the range of £1 billion to £1.05 billion.