Entain LON: ENT reported a strong first half for 2026, with online net gaming revenue rising 7% in constant currency and group EBITDA reaching £479 million, as growth in major markets helped offset higher U.K. gambling taxes and pressure in Brazil.
Stella said the company’s online business recorded its ninth consecutive quarter of growth, while both online and retail operations performed ahead of expectations. The U.K., Spain, Canada, and Australia-New Zealand delivered double-digit growth, she said.
The company also highlighted the World Cup as a major customer-acquisition event. Entain said first-time deposits during the tournament were double the level seen during the prior World Cup, while Bet Builder stakes more than doubled versus the prior tournament.
Revenue growth and tax impact
Chief Financial Officer Michael Snape said group net gaming revenue, excluding the Entain CEE business that is being moved to discontinued operations, increased 5% in the first half on a constant-currency basis. Online revenue rose 7%, supported by 9% volume growth, continued iGaming momentum and sports margins that normalized during the second quarter after customer-friendly results in the first quarter and April.
EBITDA of £479 million included £7 million of parent fees from BetMGM. The figure was down 2% year over year on a reported basis, reflecting the higher U.K. gaming tax, but was ahead of Entain’s expectations, Snape said.
The U.K. tax rate increased to 40% from 21% in April, creating a £56 million negative impact to first-half EBITDA, according to Snape. Foreign exchange provided a £16 million benefit, while strong online performance added £22 million despite a £32 million increase in marketing spending related to World Cup timing and targeted investment.
Entain said it remains on track to offset 25% of the U.K. tax increase this year through mitigation measures. The company also said it expects groupwide optimization programs to generate £100 million of net annualized run-rate savings by the end of 2027, offsetting at least half of the EBITDA impact from the U.K. tax increase.
- U.K. and Ireland online NGR and volume each rose 13%.
- U.K. sportsbook revenue increased 11%, aided by an upgraded Bet Builder offering and the World Cup.
- International online NGR increased 4%, with volume up 7%.
- Australia online growth reached 13%, while Spain, New Zealand and Canada also posted double-digit growth.
- Retail NGR increased 3% on a like-for-like basis in the U.K.
Mixed international performance
Entain said its international portfolio demonstrated the benefits of diversification, though results varied by market. Australia was a standout, with refreshed brands, broader sports offerings and upgraded app experiences supporting customer engagement and market-share gains. New Zealand also grew at a double-digit rate, while the company cited the potential future regulation of online casinos there as an opportunity.
Spain continued to deliver strong growth after Entain revitalized the bwin brand, according to the company. Entain said that over the past two years it improved bwin’s brand presence fourfold, doubled annual player acquisition and gained market share.
Canada delivered double-digit first-half revenue growth, supported by partnerships across the Premier League, Champions League and tennis Grand Slams. In Italy, double-digit gaming growth partly offset weaker sports results. Entain said it is working to revitalize its Eurobet brand through football sponsorships, including partnerships with AS Roma and SSC Napoli, as well as a broader omnichannel strategy.
Brazil remained a challenging market due to aggressive competition and a fluid regulatory environment. Snape said Entain maintained market share and remains profitable in the country, while taking a returns-focused approach rather than pursuing “growth for growth’s sake.” First-half sports wagers in Brazil rose 10%, supported by the Sportingbet brand and targeted marketing campaigns.
Management said it expects an opportunity for improvement in Brazil during the second half because of easier comparisons, but cautioned that the country’s competitive and regulatory conditions remain unpredictable, particularly ahead of an October election.
Cash flow, leverage and CEE sale
Adjusted cash flow was £43 million, up £38 million from a year earlier, driven by lower capital expenditure and interest costs as well as the timing of restructuring-related costs. Snape later said adjusted cash flow totaled £77 million in the first half when including cash flow from Entain’s current 67.5% stake in Entain CEE.
Net debt was broadly stable at £3.6 billion before proceeds from the announced CEE transaction. Reported leverage was 3.1 times, or 3.3 times including the deferred prosecution agreement, Entain said.
The company has launched a phased exit from Entain CEE, beginning with the sale of a 20% stake for €425 million. The transaction is expected to close in the fourth quarter. Snape said proceeds from the initial stake sale will be used fully to reduce debt, while future proceeds from a full CEE exit could be split between debt reduction and shareholder returns.
Entain said the CEE disposal is broadly cash-flow neutral when considering reduced interest costs. The company continues to target £500 million of adjusted cash flow by 2028, including the contribution from BetMGM and the remaining 47.5% CEE stake.
Guidance maintained
Despite the full second-half effect of the U.K. tax increase and ongoing uncertainty in Brazil, Entain reiterated its 2026 outlook. The company expects online NGR to grow 5% to 7% in constant currency for the year and maintained its online margin guidance of 21% to 22%.
Snape said management’s decision not to raise guidance reflected a balanced view of the second half, including increased marketing investment, potential sports-margin volatility and uncertainty in competitive markets. The company said it aims to exit 2026 with investment behind growth opportunities heading into 2027.
Entain declared an interim dividend of 10.3 pence per share, up 5% from the prior year. Management said reducing leverage below three times remains a priority as it seeks to improve financial flexibility and support future shareholder returns.
About Entain (LON:ENT)
Entain plc LSE: ENT is a FTSE100 company and is one of the world's largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US.
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