Entain Share Discussion Threads

[coxsmn] 17/5/2022 21:10

April numbers are out:

Michigan:
Sports adjusted revenue 3.42M - no2
iGaming 44.99M (new record) - no1

NJ:
Sports revenue 4.52M - no3
iGaming 39.93M - no1

[coxsmn] 17/5/2022 18:48

Our rivals could need 87.5% higher revenue to achieve the same profit.

[coxsmn] 17/5/2022 10:18

My understanding is the 14% competitive advantage is part of the 30-35% overall margin.

[hmonk] 17/5/2022 10:04

The current EBITDA margin is negative in the US with losses this year similar to last year’s $425m, the long term target is 30-35%.

[mjb17] 17/5/2022 08:18

Coxsm - thank you ! is this 14% an absolute number or 14% of margin - hopefully the former!! and what is that current margin please if that's public?

[coxsmn] 16/5/2022 21:07

a huge advantage when it comes to actual profits.

[cheshiremoggie] 16/5/2022 19:40

Aha. The Entain advantage is quantified. Run that over a number of years and it's hard for any other company to compete....

[coxsmn] 16/5/2022 18:39

"Management argued that its margin target was backed by major structural advantage of up to 14% against its key competitors, due to savings on Tech, market access, marketing efficiencies etc."

This was a key point made in last weeks BetMGM business update.

[coxsmn] 16/5/2022 17:56

https://seekingalpha.com/news/3839021-entain-attracts-bullish-view-from-deutsche-bank-on-betmgm-upsideDavies and team note that Entain were heading into the update and now sit at a 37% discount to the MGM Resorts International bid from January of 2021. They also pointed out that the non-US business is valued at around 4.5X the FY23 EV/EBITDA vs. the five-year average of 10.2X.Deutsche Bank has a Buy rating on Entain

[pura vida] 16/5/2022 16:57

Would a mail to the boe help? After all they resolved the issue of the 13h30 drop!

[srpactive] 16/5/2022 14:41

JPM buying, are they closing a short for someone?

[coxsmn] 15/5/2022 11:32

Twitter followers 2nd Jan to 15th May 2022 :Draftkings Sport 121.6k, 147.5k (+21.3%) Fanduel Sport 161k, 202.9k (+26.0%) BetMGM Sport 165k, 262.0k (+58.8%) Total for Sport + Casino (15th May) :Draftkings 147.5k + 10.4k = 157.9kFanduel 202.9k + 2.55k = 205.5kBetMGM 262.0k + 52.3k = 314.3k

[srpactive] 15/5/2022 08:24

I mentioned the Russians could be shorting the West.

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The Russian connections of JP Morgan are under scrutiny as it faces calls to shut down one of its key funds; the JP Morgan Russian Securities investment trust still has assets in some of the largest Kremlin-backed firms including Gazprom, Sberbank and Rosneft.

[mip55] 15/5/2022 08:17

BetMGM confirming no money being made in New York At the moment, the state is charging a 51% tax on gaming revenue. However, the respective rate is applied to revenue generated by promotional credits. In other words, the real net revenue tax on gaming in the state crosses the 100% mark.https://www.gamblingnews.com/news/betmgm-to-adopt-a-cautious-attitude-towards-ny-until-taxes-drop/

[coxsmn] 13/5/2022 21:43

://www.yogonet.com/international//news/2022/05/13/62616-betmgm-achieves-top-us-market-share-position-with-revenue-up-58--in-q1

[coxsmn] 13/5/2022 18:41

BetMGM, partypoker Lead Ontario Online Pokerhttps://pokerfuse.com/news/poker-room-news/217640-betmgm-partypoker-lead-ontario-online-poker-hot/

[deanowls] 13/5/2022 16:14

Of course a lot of execution risk between now and then but with the technology and a market that continues to move towards fewer larger businesses I think entain will be one of the top three worldwide unless taken over.

[deanowls] 13/5/2022 16:11

Way I see it Maddox, take the lower numbers from yesterdays presentation TAM of 37bn, say 20% share equals 7.4bn and a 30% e bits a margin gives about 2.2bn possible profit split in two and exchange to gbp gives call it 800 million. Market cap after todays rise is 8bn.

Then throw in the existing business, South America etc. I think you have to be looking at a minimum of 30 quid.

Ideally float off part of Betmgm in the states where they give a higher multiple and the sky is your lobster.

[merism] 13/5/2022 15:28

I like how MGM keep insisting that they are no.1 in the US

[the white house] 13/5/2022 15:18

Short sqeeeeze

[maddox] 13/5/2022 15:06

Looking at ENT's current metrics - a p/e 14.8, PEG 0.4 with share price 1348p as I post, and with Broker's forecasting strong profit recovery. Arguably this suggests that there is no premium in the price for BetMGM. Obviously, its not making a profit contribution atm and probably won't for a couple of years (until 2024 without California, 2026 with California legalising).

So, what might be a realistic value to put on their 50% of BetMGM? Anyone wish to venture means of valuing BetMGM or a figure?

[maddox] 13/5/2022 14:23

The Ladbrokes estate is leased and on ENT takeover their approach was not to renegotiate new leases but to let them expire but continue to pay the rent. This was on the basis that landlords would be highly unlikely to terminate and it gave them flexibility on sizing the network footprint. At the time there was considerable network downsizing by competitors. There was thus opportunity to pick-up market share and also re-negotiate a cheaper lease once the local micro-economics had stabilized.

Since that time we've then had Covid and lockdowns - so not sure what the physical retail strategy looks like.

[baddeal] 13/5/2022 12:25

Suspect most if not all are rented so little freehold exposure

[pura vida] 13/5/2022 11:00

Does anybody know whether entain own any of their retail outlets or are they all leased?
This factor is often ignored by analysts, for the moment the uk highstreet is loosing value but long term this would be another potential upside for the share price

[baddeal] 13/5/2022 09:50

Yes it was but I think the number is somewhat irrelevant given the level of promotions. Ngr far more important and I suspect that is little different