City analysts expect Entain to be downgraded from the FTSE100 to the FTSE250 in the forthcoming quarterly review of the FTSE UK Index Series.
Entain and volume housebuilder Persimmon are identified as the two companies most likely to leave the blue-chip index when FTSE Russell completes its latest ranking of UK-listed companies by market capitalization.
The anticipated demotion follows a sustained decline in Entain’s valuation. Its shares currently trade at around 530p ($7.18), approximately 42% below their 52-week high of 916p ($12.41). On a year-to-date basis the share price decline is closer to 30%, with the stock having ended 2025 at approximately 767p ($10.39).
Investor sentiment towards Entain reflects wider concerns surrounding UK and European gambling PLCs, as operators contend with higher taxes across core markets.
Investors have subsequently placed a higher demand on cost controls, savings and profitability.
In the UK, Remote Gaming Duty increased from 21% to 40% in April, to be followed by a rise in General Betting Duty from 15% to 25% next April.
Operators have also faced tougher tax and regulatory conditions in markets including the Netherlands, France and Germany.
Entain nevertheless outperformed market expectations in its H1 trading. Group net gaming revenue from continuing operations increased by 7% to £2.55bn ($3.45bn), equivalent to growth of 5% on a constant-currency basis. Reported revenue rose by 7% to £2.51bn ($3.40bn).
The period included strong engagement during the FIFA World Cup across Entain’s UK and Irish brands, whilst Australia and Spain delivered above-guidance growth. UK and Ireland online NGR increased by 13% at constant currency, with Australia also up 13% and Spain rising by 28%.
However, topline growth did not translate into higher underlying earnings. Group underlying EBITDA declined by 2% to £479.3m ($648m), while underlying operating profit fell by 10%, from £352m ($476m) to £318m ($430m).
Entain said the positive impact of its NGR performance was more than offset by a threefold increase in its tax burden, which weighed on its financial results and resulted in £90m ($122m) in tax payments during the reporting period.
Can Entain keep analysts’ faith?
Despite the decline in earnings, Entain’s results were positively received by the market, with underlying EBITDA exceeding analysts’ expectations of around £455m ($615m).
Despite mounting tax and fiscal pressures, Entain’s first-half performance was positively received by analysts.
Investors remain confident that, under Chief Executive Officer Stella David, Entain is building a more resilient growth model that will enable the company to return to long-term growth.
Management has maintained its FY2026 guidance. Entain continues to target online NGR growth of 5–7% at constant currency and group underlying EBITDA of between £910m and £960m ($1.23bn–$1.30bn), excluding fees paid to parent company BetMGM.
The company expects an online EBITDA margin of 21–22% and aims to mitigate approximately 25% of the impact of the higher UK online gambling tax during 2026.
The current year will be an important test of Entain’s recovery after the company reported statutory losses of £681m ($920m) in 2025 and £461m ($623m) in 2024. The 2025 result was significantly affected by a £488m ($660m) impairment charge related to the increase in UK gambling taxes.
Entain’s future in the FTSE 100 was called into question after the company reached a £615m ($831m) settlement with HMRC and the UK Crown Prosecution Service (CPS) relating to the historical activities of GVC Holdings’ former Turkish-facing business.
Entain has been a member of the FTSE 100 since June 2020, when the company operated under the GVC Holdings name. The group’s transformation into a major UK gambling company followed GVC’s acquisition of Ladbrokes Coral for approximately £4bn ($5.24bn) in 2018. The deal helped trigger a new cycle of mergers and acquisitions across the global gambling industry.
Beyond factors directly related to gambling, uncertainty continues to weigh on the London Stock Exchange (LSE) and global markets. Key risks include the fallout from geopolitical conflicts, trade tariffs, inflation and bond-market volatility, creating additional challenges for companies across different sectors.
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