JP Morgan Chase reduces stake in Entain

The banking giant briefly held an increased 7 per cent state in the UK gambling giant.

UK.- JP Morgan Chase has cut its holding in the London-listed gambling operator Entain to under 3 per cent only 10 days after upping its position to 7 per cent. A disclosure filed on Wednesday confirmed that the US banking giant had fallen below the 3 per cent reporting threshold.

The increase in the participation was reported after another shareholder, Ricky Sandler’s Eminence Capital announced plans to wind down. Sandler stepped down as a non‑executive director last month and sold his 5.8 per cent interest in Entain on May 7.

JP Morgan soon began reducing its position with disposals made on May 12, 13, 14 and 15. Entain’s share price held steady through this period, closing at 532.4p on May 15.

Entain’s challenges

It’s been a tough period for Entain’s stock price, exacerbated by the recent rise in Remote Gaming Duty Britain and Ireland has also hurt the business, prompting plans to close a third of Ladbrokes shops in Ireland. Shares closed up at 535p today but remain down by 30 per cent for the year to date.

Entain is sticking to its full-year 2026 outlook with a target of 5 to 7 per cent growth in online net gaming revenue (NGR). It expects £1.13bn in group EBITDA (excluding BetMGM fees) and at least £500m in adjusted annual cash flow by 2028.

Q1 revenue was up 3 per cent year-on-year, driven by an 8 per cent increase in volume. Online NGR was up 5 per cent, with igaming revenue up 9 per cent but sports betting revenue down 1 per cent amid weaker margins.

The quarter ending March 31 saw strong results for the UK and Ireland online business, where NGR was up 13 per cent while retail NGR slipped 1 per cent. In the CEE region, NGR fell 6 per cent, with online down 1 per cent and retail plummeting 30 per cent. BetMGM, Entain’s joint venture with MGM Resorts, saw Q1 net revenue of $696m, up 6 per cent.