Two of the world’s largest gambling groups will shed light on how bookmakers have fared after a string of player-friendly sports results and major events like the NFL Super Bowl.
Entain will publish its full-year financial results on Thursday, while Flutter Entertainment will also share its earnings on Tuesday.
London-listed Entain, which owns betting shops Ladbrokes and Coral, is expected to report underlying earnings, before tax, interest and other costs, of £1.1 billion.
This would mean generating earnings at the higher end of what analysts had previously been forecasting, after the group reassured investors in January that it was set to withstand “customer-friendly” sports results in the US.
Matches that go in the favour of many punters mean betting companies have to pay out more winnings to customers.
This mainly affected BetMGM – Entain’s tie-up with entertainment group MGM Resorts International.
Sports events like NFL American football matches and the Super Bowl, which Nielsen estimates was watched by some 128 million viewers, drive a flurry of activity with people betting on the winning team as well as hundreds of details about the games.
On the other hand, Flutter Entertainment, which owns the like brands including Paddy Power, Betfair and FanDuel, warned last month that the NFL season had been more favourable to punters than any other time in the last two decades.
It revealed that one game in December, when the Detroit Lions won against the San Franciso 49ers, cost the group 74 million US dollars alone (£59 million).
It therefore warned its shareholders that revenues and profits would likely come in considerably lower than previous forecasts thanks to the player-friendly results.
Meanwhile, Entain has kick-started a fresh search for a new chief executive after announcing boss Gavin Isaacs had left his position after less than five months.
The company has faced a turbulent few years in terms of its leadership with its previous boss resigning at the end of 2023 following reports that shareholders were unhappy with her leadership.
It is understood that Mr Isaacs’ departure was not related to Entain’s strategy or performance, but linked to cultural differences within management.
Investors will be hoping to hear an update from chair Stella David, who is running the business on a temporary basis, on the search for a new permanent chief.
It comes in the middle of a turnaround for the company, which has been working to strengthen its finances after being hit with a £585 million penalty in 2023, agreed with HM Revenue & Customs to settle charges related to alleged bribery offences in Turkey.
