Entain
Note: This is a daily stock update and the information stands true as of 05/02/26, 09:00 CET.
Company Update:
Concerns about potential disruption from AI and competition from the prediction market sent Entain's shares to an attractive level. What is interesting is that the underlying business is still doing very well as demonstrated by the results of BetMGM, at least for the time being. With stock trading with a PE26 at 9.2x and PE 27 at 8.3x, our expert believes the risk-reward profile is back to attractive levels. As a reminder, gaming/gambling is quite defensive in time of recession.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
BetMGM, the JV between Entain and MGM Resorts, delivered strong Q425 results that exceeded expectations, reflecting the benefit of a full year of strategic initiatives driving robust growth across both iGaming and Online Sports, sparking a 10.5% rise in Entain.
Q4 net revenue surged 39% yoy to $780m, supported by solid momentum in iGaming (+18%) and strong expansion in Online Sports betting (+93%). December was notably strong, driven by higher player engagement and favorable sports outcomes. Adjusted EBITDA improved to $71m (vs. -$106m in Q4 24).
For FY26, management guides for net revenue of $3.1–3.2bn and adjusted EBITDA of $300–350m, while reiterating confidence in reaching $500m EBITDA by FY27. Liquidity remains sound, with a targeted minimum unrestricted cash balance of $100–125m alongside a $150m undrawn RCF.
Further confirming the momentum, BetMGM will distribute a $270m dividend, above the $200m expected. This strong showing reinforces our positive stance on Entain (Q425 results due March 5, 2026).
Expert Opinion:Concerns about potential disruption from AI and competition from the prediction market sent Entain's shares to an attractive level. What is interesting is that the underlying business is still doing very well as demonstrated by the results of BetMGM, at least for the time being. With stock trading with a PE26 at 9.2x and PE 27 at 8.3x, our expert believes the risk-reward profile is back to attractive levels. As a reminder, gaming/gambling is quite defensive in time of recession.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Subscribe to our blog
Alphavalue Morning Market Tip
Strong results across the board - 9% shareholder yield is attractive.
