Ladbrokes owner Entain crashes to a six-year low after Brazil bans online gambling
Entain shares fell to a six-year low after Brazil banned online gambling, forcing the Ladbrokes owner to cut its earnings outlook.Summary
Entain, the FTSE 250 company that owns Ladbrokes, saw its shares fall 5.1 per cent to 426.9p, their lowest level since March 2020, after Brazil's ban on online gambling. The company said it was "disappointed" with the decision and downgraded its full-year online net gaming revenues outlook to between 4 per cent and 6 per cent, with underlying earnings expected at the lower end of its £910million to £960million guidance. Brazil was expected to account for around 5 per cent of Entain's total online net gaming revenues this year. New York-listed Flutter, which owns Paddy Power and Betfair, also said it was "extremely disappointed" and may appeal. The provisional ban must secure congressional approval within 120 days to become permanent. Earlier this month, Entain revealed around 400 jobs were being cut worldwide and launched a consultation that could see a fifth of its 2,000-strong customer care jobs go across 11 countries, as it blamed increased UK gambling taxes.
(Source：Mail Online)