FY25: EBITDA beats, BetMGM turns profitable, but a big statutory loss from UK tax impairment
Entain has posted a strong operational year. Group Underlying EBITDA came in at £1,160.1 million, up +8% on a constant currency basis and ahead of guidance. Online profitability stepped up again, while BetMGM delivered its first full year of positive EBITDA and sent cash back to its parents. The sting in the tail is a statutory loss after tax of £680.5 million, driven by non-cash impairments largely tied to the UK’s online gambling tax hike.
Management reiterated confidence in generating at least £500 million of adjusted cashflow from 2028 and now expects to offset over 50% of the extra UK tax burden from 2027.
Key FY25 numbers investors should know
| Metric | FY25 | YoY / cc | Why it matters |
|---|---|---|---|
| Group NGR | £5,325.4m | +3% / +4% cc | Top-line back to steady growth despite Q4 sports margin headwinds |
| Underlying EBITDA | £1,160.1m | +7% / +8% cc | Beat guidance with better execution and scale benefits |
| Total Underlying EBITDA incl. 50% BetMGM | £1,243.6m | +25% / +28% cc | US JV now a material contributor |
| Online Underlying EBITDA margin | 25.7% | Expanded | Shows operating leverage even as taxes rose |
| Statutory loss after tax | £680.5m | n/a | Includes £487.7m UK impairment from tax changes |
| Adjusted cashflow | £150.7m | ahead of expectations | Helped by BetMGM’s cash distribution |
| Adjusted net debt | £3,644.2m | Leverage 3.1x | Look-through leverage 3.6x, improved 0.7x YoY |
| Total dividend | 19.6p per share | +5% | Final 9.8p payable on 24 April 2026 |
| BetMGM net revenue | $2,796m | +33% cc | EBITDA $220m, $270m cash distributed to parents |
Where the growth came from in FY25
UK & Ireland: online firing, retail resilient
UK & Ireland NGR rose +6% cc. Online led the charge at +15% cc with double-digit volume growth and market share gains, while retail dipped -2% cc but was flat on a like-for-like basis with share gains. The UK engine looks in good health operationally, which is important as the new UK tax regime lands on 1 April 2026.
International: mixed picture under tougher sports margins
- International NGR was +2% cc overall. Italy grew +6% cc, while Brazil was -1% cc for the year after highly customer-friendly sports results in H2 and new taxes. Australia was -6% cc, again hit by sports results, though H2 volumes turned positive.
- Double-digit online growth came through in Georgia, Spain, Canada, Greece and New Zealand, with NZ benefiting from restrictions on offshore unlicensed operators.
CEE: steady growth and high-quality earnings
Entain CEE delivered +5% cc NGR, with online +6% cc. Croatia showed double-digit volumes through H2 and Poland maintained its number one position despite fierce competition. EBITDA for the region rose to £183.7 million.
BetMGM: profitable and paying
BetMGM posted $2,796 million net revenue and $220 million EBITDA, then distributed $270 million cash to Entain and MGM Resorts. The JV guides to $3.1-3.2 billion revenue and $300-350 million Adjusted EBITDA in FY26, and still targets $500 million in 2027. That is a meaningful medium-term value driver for Entain.
Margins, cash and balance sheet
Online Underlying EBITDA margin expanded to 25.7%, a notable achievement given the 1.4 percentage point drag from incremental taxes. Adjusted cashflow of £150.7 million beat expectations as both core EBITDA and the BetMGM distribution surprised positively.
Adjusted net debt sits at £3,644.2 million. Reported leverage is 3.1x and look-through leverage is 3.6x, improved by 0.7x year on year. Cash and equivalents were £554.1 million at year end, with total available liquidity of £964 million.
Why the statutory loss looks worse than the reality
The £680.5 million statutory loss after tax is largely accounting noise from non-cash items. The big one is a £587 million total impairment, including £487.7 million on UK goodwill following the November 2025 decision to lift UK online gambling taxes. Impairments do not affect cash, but they do reset carrying values to match new regulatory economics.
There were other separately disclosed items too, such as amortisation of acquired intangibles (£258.1 million) and a provision for a potential AUSTRAC civil penalty (£53.7 million). None of this changes the core message: operating performance improved and cash generation strengthened.
Outlook: growth, tax mitigation and cash
- FY26 guidance: Online NGR growth ex US of 5-7% on a constant currency basis, and Entain remains comfortable with market expectations for FY26 Group Underlying EBITDA. Company-compiled consensus stands at £1,126 million.
- Online EBITDA margin expected at 23-24% in FY26, reflecting the UK tax step-up, with about 25% of the incremental impact mitigated in 2026 and over 50% from 2027 through Group-wide optimisation.
- Cash: management reiterates confidence in generating at least £500 million of annual adjusted cashflow from 2028.
- Dividend: total 2025 dividend of 19.6p per share, up 5%, with the second interim of 9.8p due on 24 April 2026.
My take: structurally stronger, but tax and litigation are the watch-outs
On the positive side, Entain’s core online business is scaling profitably, UK online is regaining share, and BetMGM has flipped to cash-generative growth. Margin expansion to 25.7% online is a clear marker that the revamped tech and operating model are working.
On the caution side, the UK tax reset is real, and while mitigation plans look credible, 2026 margins will dip before the rebound from 2027. International still has volatility from sports margins and competition in Brazil and Australia. There is also a £53.7 million AUSTRAC provision with outcomes uncertain, plus ongoing player and shareholder claims highlighted in the notes. Leverage has improved but remains one to monitor.
Net-net, the operational trajectory is better than the statutory headlines imply. If management executes on tax offset and cash conversion, the equity story should improve into 2027-2028.
What to watch through 2026
- UK tax implementation from 1 April 2026 and evidence of >25% mitigation in-year.
- BetMGM delivery vs guidance: $3.1-3.2bn revenue and $300-350m Adjusted EBITDA.
- Brazil and Australia momentum as H2 sports results normalise and acquisition discipline continues.
- Leverage trend from 3.1x toward the low 3s, supported by cashflow and any BetMGM distributions.
- Resolution or clarity on AUSTRAC proceedings and other legal matters.
Quick jargon buster
- NGR: Net Gaming Revenue, the amount kept after payouts to customers but before VAT and sales taxes.
- Underlying EBITDA: earnings before interest, tax, depreciation and amortisation, excluding certain items the company discloses separately.
- Constant currency, cc: performance restated at last year’s FX rates to strip out currency moves.
- Sports margin: the percentage of wagers retained after paying winning bets.
- Volumes: management’s measure that adjusts for sports margin swings to show underlying customer activity.
