Entain (LSE:ENT) shares climbed 4.5% to 454.5p on Wednesday, driven by encouraging financial results from the company and its BetMGM joint venture.
BetMGM, a 50-50 joint venture between Entain and MGM Resorts International, reported third-quarter 2026 net revenue of $710 million, a 7% increase year-on-year.
Adjusted EBITDA for the joint venture surged 112% to $86 million during the third quarter, reflecting meaningful operational improvement across the business.
BetMGM also distributed $68 million in cash to its two parent companies during the quarter, underlining the venture’s growing financial contribution.
The BetMGM results followed Entain’s own third-quarter trading update on 15 October, which highlighted growth in UK and Ireland online operations.
Online net gaming revenue in the UK and Ireland region rose 14%, surpassing market expectations, with gaming revenue up 17% and online volumes increasing 15%.
Entain also reported double-digit growth in New Zealand, Spain and Canada, though its Brazilian operations continued to face headwinds from the country’s nationwide restrictions on online gambling.
The company maintained its full-year 2026 financial guidance, forecasting online net gaming revenue growth of between 4% and 6% at constant exchange rates.
Entain also reiterated its expectation that underlying EBITDA would land at the lower end of its previously announced range of £910 million to £960 million.
Goldman Sachs maintained its Buy rating on Entain but reduced its price target to £8.00, down from £10.40, following the latest trading disclosures.
Morgan Stanley similarly retained its Overweight recommendation while trimming its target price to £10.00 from £10.50, keeping confidence in the stock despite the lower valuation.
Both investment banks therefore held their existing positive ratings on Entain even as they revised their respective price targets downward.
During Wednesday’s trading session, Entain shares reached an intraday high of 458.3p, reflecting sustained buying interest throughout the day.
At 454.5p, the stock continued to trade well below its 52-week high of 826.6p, leaving considerable distance to recover for longer-term investors.
The combination of BetMGM’s quarterly results, Entain’s UK and Ireland online growth, and steady full-year guidance collectively supported the positive market reaction seen on Wednesday.
