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(Sharecast News) - Entain shot higher on Tuesday as it lifted its full-year guidance for BetMGM, its joint venture with MGM Resorts, following a better-than-expected third-quarter performance.
The company said "strong" year-to-date momentum continued across both online sports and iGaming in the third quarter.
Net revenue pushed up 23% on the same period a year ago to $667m, with iGaming net revenue 21% higher and online sports net revenue up 36%.
Earnings before interest, tax, depreciation and amortisation rose by $57m to $41m.
Entain said the ongoing successful execution of BetMGM's refined player engagement strategy supported by further enhanced product and user experiences delivered growth in player activity and retention.
The company lifted its full-year guidance for BetMGM to net revenue of at least $2.75bn and EBITDA of about $200m.
It also said that BetMGM expects to distribute at least $200m to parents before the end of 2025.
Chief executive Adam Greenblatt said: "BetMGM's momentum from H1 continued into Q3, underpinned by the ongoing execution of our strategic plan. The execution in operations we have described this year - improved marketing efficiency, player management, brand positioning, and product and platform improvements - all contributed to our strong revenue growth and material cash flow increase from both sides of the business.
"Strong underlying metrics and margin outperformance during July and August support our confidence in raising guidance for full year 2025. Furthermore, we have reached yet another inflection point in our journey, returning operating cash flow back to Entain and MGM Resorts. My previous statements that BetMGM is healthier than it has ever been still ring loudly, and our stronger than expected performance through Q3 positions us well for the rest of the year and into 2026."
At 1235 BST, Entain shares were up 3.5% at 854p.
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