US-based mutual fund company, Dodge & Cox, has significantly increased its investment in the global sports betting and gaming group, Entain, indicating a strong show of confidence in the company’s potential for growth. Dodge & Cox’s stake in Entain has more than doubled, making it the second-largest single shareholder in the gambling giant. This announcement comes on the heels of Entain’s updated plans to improve operational efficiency, further solidifying investor confidence in the company.
Dodge & Cox first invested in Entain in September 2022 and is renowned for its diverse portfolio, with substantial holdings in major corporations such as GSK and Alphabet, Google’s parent company. Managing approximately $323 billion in assets as of December 2022, Dodge & Cox’s continued interest in Entain has positively impacted the gambling company’s market shares, boosting it by 0.11% to £954.
The mutual fund company’s stake in Entain has grown from 5.01% to 10.33% of total shares, equivalent to 66,001,318 of the voting rights in the owner of Ladbrokes. As a result, Dodge & Cox now trails only The Capital Group Companies, holding the most significant stake in Entain at 14.81%.
By significantly increasing its stake in Entain, Dodge & Cox strengthens its influence in the company as Entain focuses on its most profitable verticals. This move comes at a time when Entain announced plans to scale back Unikrn’s B2C operations, reflecting an ongoing shift in strategic priorities.
Entain’s Q3 trading update coincided with Dodge & Cox’s stake increase, revealing a 7% increase in total group net gaming revenue (NGR), including its US-facing operations. Retail revenue grew by 4% in Q3, while online operations saw a 9% increase. With iGaming operations rising 14% and online betting increasing by 1%, Entain CEO, Jette Nygaard-Andersen, emphasized the company’s transformative period and focus on organic growth in high-return markets.
While Dodge & Cox’s increased holding is a significant development for Entain, it underscores the growing investor interest in the global sports betting and gaming industry. Entain’s strategic plans and the sector’s potential for significant growth in the coming years further increase the likelihood of additional investments and strategic moves.