Entain Plc reports that group trading performance is exceeding expectations, with new CEO Stella David and Chairman Pierre Bouchut projecting full-year EBITDA in the range of £1.1 billion to £1.15 billion ($1.37 billion to $1.44 billion).
The year-end forecast has been upgraded as Entain continues to deliver solid results despite challenging comparatives, with group net gaming revenue (NGR) reaching £2.62 billion ($3.28 billion), up 3% from 2024’s £2.55 billion ($3.19 billion).
For the six months ended June 30, group NGR rose 3% to £2.63 billion ($3.29 billion), or 6% on a constant currency basis, compared with £2.56 billion ($3.20 billion) in the same period last year.
In the first half, Entain posted underlying EBITDA of £583.4 million ($729.3 million), up 11% year-on-year, driven by double-digit growth in its UK & Ireland online division and a sharp turnaround in its US joint venture with MGM Resorts. Including its 50% share of BetMGM, group EBITDA surged 32% to £625.5 million ($781 million).
“This performance strengthens our confidence in delivering sustainable growth and generating more than £0.5 billion ($0.62 billion) in cash annually over the medium term,” David said. “Our business is becoming stronger, more efficient and faster – we are well positioned to capitalise on the significant opportunities ahead.”
Red Numbers Amid Continued Losses
Despite operational improvements, Entain recorded a post-tax loss of £116.9 million ($145 million) for the half-year, significantly higher than the £5.6 million ($7 million) loss in the same period of 2024. This was mainly due to £322.4 million ($400 million) in separately disclosed costs.
These included £131 million ($160 million) in amortisation of acquired intangible assets, a £47.7 million ($58 million) provision linked to AUSTRAC proceedings in Australia, £35.1 million ($43 million) in restructuring charges, and a £75.7 million ($93 million) loss from revaluing contingent consideration. The group also booked £87 million ($107 million) in foreign exchange losses compared to a £90.4 million ($101 million) gain last year.
Positive Momentum for BetMGM and UK Brands
The BetMGM joint venture saw net revenue climb 35% on a constant currency basis to $1.35 billion, with EBITDA swinging to a $109 million profit from a $123 million loss in the first half of 2024. iGaming grew by 28% and online sports betting by 61%, despite no new state launches.
In the home market of the UK & Ireland, NGR rose 9% to £1.09 billion ($1.34 billion), driven by a 21% increase in online revenue. Sports betting revenue grew 16%, while gaming revenue rose 23%, supported by the easing of regulatory restrictions. The region’s EBITDA jumped 37% to £273 million ($335 million). Meanwhile, Ladbrokes Coral’s retail performance remained subdued, with income down 2% across UK outlets.
The International division delivered £1.29 billion ($1.59 billion) in NGR, down 2% in reported terms but up 3% on a constant currency basis. Growth was supported by a 21% increase in Brazil’s NGR, credited to the strong launch of the revamped Sportingbet brand and Entain’s player acquisition strategy in the country.
Elsewhere, Italy grew 7% on a constant currency basis, but international growth was held back by a 7% decline in Australia – a market Entain aims to develop through improvements in NEDs and Ladbrokes Australia.
New Zealand posted a 12% gain, confirming positive momentum as Entain prepares to take over the exclusive TAB NZ contract, pending final legislative approval. The International unit’s underlying EBITDA fell 9% to £274.6 million ($339 million), partly due to £29 million ($36 million) in Brazilian taxes – a situation closely monitored by Entain’s leadership.
In Central European markets, Entain CEE’s NGR rose 5% to £253.8 million ($313 million), with Croatia up 11% and Poland up 2% (a sports-only market facing tough Euro 2024 comparatives). The unit’s EBITDA climbed 12% to £94.7 million ($117 million). CEE performance reflects the outright market dominance of the SuperSport and STS Poland brands.
Stella David: Transformation goals and must win markets
“Our transformation journey is well underway, gathering pace and supported by our high-quality portfolio of iconic brands,” Entain’s CEO said. “The actions we have taken are working. We have rebuilt momentum in the UK, executed a flawless Day One launch in Brazil’s regulated market, and BetMGM is delivering strong and profitable growth in the US.
“We remain committed to expanding margins, growing market share and ensuring our customers enjoy the best and safest experiences in the industry. With this foundation, I am confident we can return Entain to its winning ways.”
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