Russ Mould, investment director at AJ Bell, said: “When the key message is ‘hey, we’re losing less money’ it’s probably not a cue to get too excited, and shareholders in Ladbrokes-owner Entain were underwhelmed by the company’s first-half results.
“Entain may have beaten expectations, boosted by significant cost cutting and a surge in betting around the World Cup, but guidance for full-year earnings at the lower end of expectations in the all-important US market helped take the shine off the update.
“Entain’s 50 per cent-owned BetMGM venture is where much of the excitement around the stock comes from but fierce competition in this market is clearly becoming more of an issue.
“Domestically, the gambling sector remains in a vice as regulatory and tax burdens continue to ramp up. However, job cuts helped Entain to absorb the impact of the hike in remote gaming duty in the UK.
“Significantly for its future prospects, Entain says the volume of first-time depositors doubled during the World Cup when compared to recent major sporting tournaments. Meanwhile the digital business continues to perform robustly and the decision to hike the dividend implies a measure of confidence.”
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