GMVHF - Entain and European sports betting peers look for World Cup bounce

Entain Plc ( OTCPK:GMVHF ) bounced off its 52-week low with two days of gains last week after the company delivered Q3 results largely in line with forecasts and the expectation of analysts.

With its trading update on Q3, Entain reiterated guidance and said it sees healthy momentum into the end of the year, which included momentum for the BetMGM U.S. joint venture owned along with MGM Resorts International ( MGM ). BetMGM saw net gaming revenue growth of 90% to $400M during the quarter. Notably, BetMGM maintained an online betting market share of 23% in key markets including New York. Looking ahead, Entain expects the World Cup to help drive momentum against easier prior year comparables.

Roundhill Investment's Will Hershey thinks the World Cup could benefit Entain, as well as European betting stock peers such as Kindred Group ( OTC:KNDGF ) and 888 Holdings ( OTCPK:EIHDF ).

Hershey also pointed to another wildcard with Entain ( OTCPK:GMVHF ). He thinks MGM will eventually make another run at attempting to purchase Entain and achieve full ownership of the "crown jewel" although the increased cost of capital is seen putting that transaction off for the near term.

Shares of Entain rose 0.77% in morning trading on Monday in London.

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