British betting group Entain is continuing on its acquisition spree.
It announced yesterday it was buying Croatia's SuperSport Group for £600million.
Entain, whose brands include Ladbrokes and Corals, said that the SuperSport deal was its fifth this year.
Reuters said that the acquisition is being made through a new venture in central and eastern Europe, in which Entain will own a 75% stake.
Also yesterday,the London-listed business announced a surge in half-year profits.
The underlying operating profits were £246.5million - up 20% from the same period in 2021.
Although Entain's online net gaming revenue fell 7% in the six months to June 30, shares in the FTSE 100 firm closed more than 6% higher at £1,388.
Gambling firms gained during the Covid-19 pandemic as punters went online, but they now face pressure as some customers reduce non-essential spending due to rising fuel and food costs.
Moderating spending
Entain, which also owns the partypoker online brand, said: "In Q2, we also saw our increasingly-recreational customer base responding to the changing macro environment and inflationary fears by moderating spend per head across the UK and parts of Europe."
Entain's chief financial officer Rob Wood later told Reuters: ""We expect to get back to growth in online in the second half of the year."
Previously known as GVC Holdings, Entain said it was on track to deliver 2022 revenue of more than $1.3billion (£1.07billion) at BetMGM, its US joint venture with MGM Resorts.
BetMGM is expected to turn profitable in 2023.
Analysts at Peel Hunt said in a note: "Once BetMGM becomes profitable, and that appears to be coming closer, the value of Entain overall will become clearer."
FTSE 100
The UK's top share index, the FTSE 100, was up 40 points at 7,506 shortly after opening this morning, following yesterday's 41-point loss.
Brent crude futures were down 0.42% at $99.18 a barrel.
Companies reporting today
- Half-year results: Flutter Entertainment
- Second-quarter results: TBC Bank Group