UK major operators’ profits set to soar amid US expansion

Content Team August 8, 2023

This week, the UK’s major gambling companies announce their interim results. The expectation is news of strong growth during 1H23 bolstered by US expansion. Flutter Entertainment Group’s shares have performed well this year, bolstered by revenue growth. The group, which operates major brands like Fanduel and Paddy Power publishes its interim results tomorrow, Wednesday August 9. Entain, operators of recognisable brands like Ladbrokes and BetMGM, publish their results on Thursday August 10. The results are expected to reveal a substantial rise in profit.

US expansion has come in the spotlight as UK gaming operators feel the squeeze of constraints on home turf. UK gambling reforms announced in April, which include stricter stake limits for online casinos and more affordability checks, are putting pressure on business development and profitability for UK operators.

Flutter began the year with comparably robust growth in the UK. It reported a 17 percent increase in the UK and Ireland, which is attributable to tailwinds from the winter World Cup in Qatar, supported by strong performance in the US market.

Experts, however, caution against period comparisons as retail growth is set to slow down. Flutter shareholders are expecting the imminent release of results to reveal a first profit from the fast-growing operations in the US led primarily by Flutter’s FanDuel platform.

Entain investors will also have US opportunities on their mind as it provides its US update on Thursday. Shares in the company have lifted strongly in recent weeks amid fresh speculation that the firm could be a takeover target for US joint venture partner MGM. Casino operator MGM first bid for Entain with a £8 billion offer in 2021 which was rejected by shareholders and ruled itself out of another move in February after renewed rumours.

Entain investors will also be on tender hooks for the Thursday update, as the casino operator MGM takeover saga sees a fresh resurgence amid recent rumours of another offer. New takeover chatter has induced a significant rise in Entain share prices. This follows a sharp drop in February when MGM squashed rumours of a second takeover bid after its initial £8 billion offer for Entain in 2021 was rejected by shareholders. The MGM decision in February effectively meant a six-month moratorium on another bid, but with the period almost over, new rumours of a fresh takeover bid are already circulating.

In contrast to Entain, which felt the brunt of regulatory pressures in its UK and German markets, BetMGM, the joint venture between MGM and Entain, has continued to post excellent growth, mainly due to the strengthening US market.

SiGMA’s regional summit in Limassol, Cyprus

SiGMA Balkans/CIS will be held at the City of Dreams, Europe’s first integrated resort from the 04 – 07 September.

Industry operators will be able to connect with leading affiliates and two conference stages will feature a number of high-profile guest speakers. There will also be an expo floor, including the SiGMA Startup Village. So much more is happening in Limassol! Check out all the details here.