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What is Wishing Wheel?
Analysts remain bullish on the operator’s future following its H1 earnings report. A Goodbody note dated 13 August hailed “another positive update, with H1 adjusted EBITDA landing comfortably ahead of expectations”.
UK&I continues to be a “standout performance” said the note, as Entain sits comfortably ahead of its peers and appears to be seizing market share, amid fallout from the UK’s remote gaming duty tax hike in April.
In a 14 August note from UBS, the investment bank reiterated its buy rating for Entain. “Overall, we believe Entain shares offer the highest theoretical upside potential within the European gaming sector, albeit with a risk profile that remains elevated relative to peers,” the note went on to say.
How to play Wishing Wheel
GiG exited the B2C space in 2023 when, after a strategic review, the company split its media and platform divisions, the former of which was rebranded as Gentoo Media.
The 888Africa acquisition announcement raises questions about why GiG have opted to return to the B2C sphere. Richards warns against over-analysing the deal as a wholesale return to B2C, insisting that GiG remains a B2B platform and tech business at its core.
Asked why GiG had returned to B2C, Richards explains the decision was threefold.
How to play Wishing Wheel
“These jobs matter. They matter particularly in communities where good local employment can be difficult to find.”
She emphasised that half of Entain’s retail employees were women, with over 50% working flexible or part-time hours. More than 2,500 of its employees are under 25 years old.
The letter argues that the proposed increase would hit the workers and communities Labour’s “Makerfield Test” is supposed to protect, while potentially costing the Exchequer money rather than raising it.
