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Entain Share Price Outlook as Revenue Growth Stalls

Birmingham, England - March 17 2019: The entrance to Ladbrokes Bookmakers in Hurst Street

Entain share price has been in a strong bearish trend in 2022 as concerns about the company’s growth remain. The stock was trading at 1,093p on Wednesday, meaning that it has crashed by 35% in 2022. It has also fallen by more than 56% from its highest level in 2021, giving it a market cap of over 6.45 billion pounds. 

Entain earnings review

Entain published its earnings from July 1 to September 30 of this year. The company’s net gaming revenue rose by 2% in this period while online Net Gaming Revenue (NGR) rose by 1%. At the same time, the company’s CAGR continued in a three-year period was about 11%.

However, this year has been relatively hard for Entain and other companies in the industry. For example, its online growth has crashed by 5% this year. This slowdown has been offset by its retail division, which has risen by 102% this year. In total group revenue rose by 12% year-to-date. In a statement, the company’s CEO said that:

““Our business continues to perform well with good underlying momentum across the group, including in BetMGM. Our diversified revenue base and robust business model enable us to remain confident in our ability to deliver on our growth and sustainability strategy.”

Entain is operating in a difficult position. Online gaming has tumbled in the past few months as the momentum that existed during the pandemic waned. On a positive side, Entain’s BetMGM joint venture is doing well, helped by the strong NFL season. Further, the company reports in British pound while it has many international operations. Therefore, it will likely have positive forex tailwinds.

Entain share price forecast

The daily chart shows that the ENT share price has been in a strong bearish trend in the past few months. It has formed a bearish channel shown in black. The stock has crashed below the 25-day and 50-day moving averages while the MACD has continued falling. It crashed below the important support level at 1,206p, which was the lowest level on May 12. 

Therefore, the stock will likely continue falling as sellers target the next key support at 992p. A move above the resistance level at 1,100p will invalidate the bearish view.

Entain share price