Ladbrokes owner Entain sees 2024 profit at top end of forecast

(Reuters) -British gambling group Entain expects 2024 core profit to be at the top end of its forecast range, it said on Monday, helped by favourable sports results in the fourth quarter in the UK and Ireland.

The company's shares rose nearly 9% in early trade, with analysts at Jefferies saying the reiteration of full-year guidance for both Entain and its U.S. BetMGM business should be a positive catalyst.

Entain maintained its forecast for a $250 million core loss at its BetMGM joint venture with MGM Resorts in the United States, where sports results favoured its customers.

Rival Flutter, the world's largest online betting company, last week flagged a hit to its full-year earnings as the American NFL season to date has seen the highest rate of favourites winning in almost 20 years.

Shares in Entain, which had fallen more than 30% in the past year, lost a further 12% after Flutter's warning in the U.S., where a ban on sports betting was only lifted in 2018.

The owner of Ladbrokes now expects core profit at the top of its forecast range of 1.04 billion pounds to 1.09 billion pounds ($1.26-1.32 billion).

"While...the company remains focused on improving its offering across key markets, including UK, U.S., and Brazil, we think that Entain will need more time - and investments - to turn its overall trading and profitability momentum around," analysts at JPMorgan said in a note.

Entain is expected to provide its 2025 forecast on March 6.

($1 = 0.8230 pounds)

(Reporting by Radhika Anilkumar in Bengaluru; Editing by Mrigank Dhaniwala, Kirsten Donovan)