Entain Share Discussion Threads

[gambler911] 14/10/2024 17:08

Shares in British gambling firms plummeted on Monday morning after reports that the government was eyeing up £3bn tax rises on the sector in a move that one investment bank said would “all but wipe out bookmaker profitability in the UK”.
William Hill-owner Evoke saw its share price crater by over 13 per cent in morning trading, while shares in Flutter, which owns brands like Paddy Power and Sky Bet, dropped by six per cent.
Entain – the owner of Ladbrokes and 888casino – took a seven per cent pummelling to its stock price, wiping over £3bn in total off the UK gambling sector’s market cap in just a few hours of trading.
The sharp slump follows a report published in the Guardian on Friday which said the Treasury was weighing up introducing proposals put forward by two think tanks, and backed by one of Labour’s biggest donors, at the upcoming Budget.
The Institute for Public Policy Research (IPPR) and and Social Market Foundation (SMF) have both proposed new ways of taxing the UK gambling sector in recent months, with the latter backed by casino entrepreneur turned gambling regulation campaigner Derek Webb.
In September, the IPPR published a report that estimated that the government could raise £2.9bn next year – and north of £3bn by 2030 – if it doubled taxes on “higher harm” industries like online casino games, while leaving “lower harm” activities like bingo and the lottery untouched.
This would see the tax levied on general high-street bookmakers hiked from 15 per cent to 30 per cent, and online gambling duty up to 50 per cent.
The SMF’s proposals are more moderate, suggesting the government should double the taxation on online gambling companies specifically from 21 per cent to 42 per cent, in a move that it says would raise £900m.
But several analysts have dismissed the rumoured levies as unrealistic, with one labelling them “egregiousR21;.
James Wheatcroft, analyst at the investment bank Jefferies, said: “The proposals apparently being considered would all but wipe out bookmaker profitability in the UK, per our estimates.
“The headlines highlight that changing tax (and regulation) is a legitimate concern when investing in gaming companies, but the extent of these proposals seems unrealistic. The headlines have since faded to the backpages, with limited media follow-up elsewhere.”
Meanwhile Barclays analyst Brandt Montour commented: “While the article appears credible, the proposed changes (a doubling of most tax rates within one of the proposals) seem egregious to us, and will likely raise realistic concerns over anti-competitive impacts (most small operators would likely close-down) as well as giving a substantial boost to the black market.”
Both Barclays and Jefferies also warned the IPPR proposals – if implemented in their strictest form – would stoke a rise in black market gambling.
Russ Mould, AJ Bell’s investment director, said: “Labour is desperately looking for ways to raise revenue, having ruled out increasing taxes on ‘working people’. It’s notable that the speculation suggests so-called ‘lower harm’ activities like bingo and the lottery will be untouched by any tax changes…
“Today’s news is a salient reminder of the strengthening headwinds the sector faces in terms of regulation and tax and that this remains a live risk for investors to consider.”

[italianofacile] 14/10/2024 15:20

Entain trades nearer 5 times EBITDA..so imo 8percent .certainly not 14

[casholaa] 14/10/2024 15:18

The water company won't be paying, that's for sure.

[the white house] 14/10/2024 15:14

Supermarkets have pushed up the price of a cucumber from 50p to 89p in a year & they all handily price match each other to excuse it. Will there be a tax on windfall Cucumber profit?

[privileged] 14/10/2024 14:17

If you are correct then 70m extra tax x 7 multiple = 490m = 10% share price hit

[patmike] 14/10/2024 14:13

Seems to be a big seller here at about £7.13.

[italianofacile] 14/10/2024 12:49

Bought..do the maths..
Incl US H1 NGR c 2.96bn.
UK online including Ireland 464m
c 16 percent..
EBITDA ex US EST 1.1bn..2024
Tax increase c70m....
At 20 percent margin NGR 350m..
Drop 14 percent over baked..

[privileged] 14/10/2024 11:22

Thank you for the 50p intra day profit there :)

[bargainsniper] 14/10/2024 11:12

The government accepting large gifts from donors amounts to bribery and corruption. Doners don't give unless there is something in it for them. It stinks. This is the Uk not Nigeria.

[uncle andy] 14/10/2024 11:03

Their perks are tax free it seems.

Cheeky sods even expense accounting assistance for their self assessments.

Even with an MP only hotline to HMRC they're too stupid to fill out the forms themselves.

[casholaa] 14/10/2024 10:26

What tax do political parties pay on all those donations and other earnings?

[bargainsniper] 14/10/2024 10:10

Citibank analyst Monique Pollard said such changes to UK gambling taxes could have a "material" impact on Flutter and Entain's earnings, although Jefferies analyst James Wheatcroft called the report "unrealistic."Mr Wheatcroft added: "The proposals apparently being considered would all but wipe out bookmaker profitability in the UK, per our estimates."

[juliemara] 14/10/2024 09:54

WK 👍 (but premature hopefully).

[suetballs] 14/10/2024 09:48

Let's get the budget out of the way.
The economy needs some certainty - Labour haven't got a clue.
Suet

[window kleaner] 14/10/2024 09:45

BANKED AT 692, Nice gain

[bulltradept] 14/10/2024 09:43

Of course not, they are full of trots!

[mister md] 14/10/2024 09:22

Well, that's reduced my (paper) profits somewhat. Nonetheless, have added a few in the 660s just incase the drop was overblown ...

[bargainsniper] 14/10/2024 09:06

Government doesn't seem at all business friendly

[davius] 14/10/2024 08:58

...
But the gambling industry will be no pushover.

The chair of its lobbying group, the Betting and Gaming Council, is Michael Dugher, a former Labour MP and spokesperson for Gordon Brown, whose contacts book, if not his rhetoric, has served the industry well.

His rather slicker successor as the lobby group’s chief executive, Grainne Hurst, is a former executive at gambling group Entain, but knows her way around Westminster too.

She previously worked for Philip Davies, the notoriously gambling-friendly Conservative MP who infamously bet, successfully, that he would lose his seat at the last election.

Alongside the industry’s donations to Labour sit a host of freebies, such as sports and gig tickets, with recipients including Reeves and two other ministers with a voice on gambling policy, the health secretary, Wes Streeting, and the business secretary, Jonathan Reynolds.

The chips have been placed but, with the budget just weeks away, it is far from clear which player has the strongest hand.

[bulltradept] 14/10/2024 08:55

Could have, would have, should have..

[typo56] 14/10/2024 08:38

Could see a bounce for Q3 trading update on Thursday

[typo56] 14/10/2024 08:34

"Geographically, in 2023 Core markets represented 67% of the total Online betting
and gaming Market that Entain operated in. The largest individual countries being
the UK (c15%), Italy (c8%) and Australia (c6%)."

Given UK is only c.15%, does that warrant a 15% drop in the share price?

[davius] 14/10/2024 08:12

Elsewhere, Entain dropped 13%, following a report that the Labour government is considering an up to GBP3 billion tax hit on the sector.

Late Friday, the Guardian reported that Treasury officials are understood to be weighing up proposals, put forward by two influential think tanks and backed by one of the party's top five individual donors, to double some of the taxes levied on online casinos and bookmakers.

Measures could be included in this month’s budget, the report said.

Shares in William Hill-owner, Evoke, tumbled 14%, while Flutter Entertainment lost 7.2%.

Guardian sources said the Treasury had yet to make a decision but appeared "receptive" to tweaking the UK's regime of betting and gaming duties to raise extra funds of between GBP900 million and GBP3 billion, despite opposition from industry lobbyists.

"It's definitely on the map," said a source familiar with Treasury thinking. "There's no obvious pushback to it."

[casholaa] 14/10/2024 08:09

The telly-tax must go! They should introduce a new tax just for think-tanks.

[juliemara] 14/10/2024 08:07

Casholaa14 Oct '24 - 08:30 - 11946 of 11951
0 1 0
There should be more taxes on the press as they don't make anything worthwhile and make money out of gossip and other people's misery.

100% agree, starting with the abolition of the BBC licence fee! And then the lining up of the press cricket correspondents along a whitewashed wall! 😉