Entain, which also owns Coral, said last month that online gaming revenues dipped over the first half of 2022. Two of the UK’s biggest gambling firms are set to disclose the impact of more cautious UK punters, as household spending comes under pressure from turmoil in the economy. Investors of Ladbrokes owner Entain and Paddy Power’s parent firm Flutter will be hoping that profits have been protected despite worries over consumer sentiment, when they deliver half-year updates next week.
Attention will be focused on whether management believe the previous spending habits will remain intact
Charlie Williams, Hargreaves Lansdown
Charlie Williams, equity research assistant at Hargreaves Lansdown, said focus will therefore turn to how profits for the period have fared when it updates the market on Thursday August 11. Concerns over lower demand from punters therefore means that shares are about 30% lower over the past three months, despite a rebound in retail revenues following the reopening of shops after coronavirus curbs were lifted.
Investors will also be hopeful that a bumper sporting calendar for the rest of the year, including the winter World Cup in Qatar, could provide a much-needed boost to sports betting. Its Bet MGM business in the US will also provide solace, with growth predicted at more than 50% for the year. Flutter will also find reason for optimism stateside, through its Fan Duel sports book business.