Entain interim results: growth beats expectations but UK tax weighs on profit

Entain PLC has reported a stronger-than-expected first half of 2026, supported by impressive online growth in the UK and Australia and strong customer engagement during the Men's World Cup.

However, the headline growth did not fully translate into higher profit. Increased UK online gambling taxes pushed underlying earnings lower, while adjusted earnings per share also declined.

This makes the results a mix of genuine operational progress and familiar financial pressure. Entain is growing again, but tax, debt and regulatory costs continue to take a meaningful bite.

Entain's first-half results at a glance

The figures below cover continuing operations and exclude Entain's Central and Eastern European business, known as Entain CEE, unless stated otherwise.

Metric	H1 2026	Year-on-year change
Net gaming revenue	£2,545.3 million	+7% reported, +5% constant currency
Revenue	£2,514.3 million	+7%
Underlying EBITDA	£479.3 million	-2%
Underlying operating profit	£318.9 million	-10%
Loss after tax	£11.4 million	Improved from £85.8 million loss
Adjusted diluted earnings per share	20.3p	-19%
Interim dividend	10.3p	+5%
Net debt	£3,598.9 million	Leverage of 3.1 times

Net gaming revenue, or NGR, is the amount retained from betting and gaming activity before VAT and sales taxes. Underlying EBITDA is profit before interest, tax, depreciation, amortisation and certain other items.

The full figures are available in the original company announcement.

Online growth is the standout positive

Entain's online operation delivered constant-currency NGR growth of 7%, backed by 9% volume growth. Online gaming NGR rose 9%, while online sports NGR increased 4%.

The UK and Ireland was particularly strong. Total NGR in the region rose 8% at constant currency, with online NGR up 13% and retail up 2%.

UK and Ireland online sports NGR grew 11%, while gaming NGR increased 13%. Management said the business continued to gain market share, helped by product improvements, a redesigned Ladbrokes app and more targeted bonus spending.

Australia was another bright spot, with online NGR up 13% at constant currency. Entain credited simplified operations, refreshed Ladbrokes and Neds propositions and an improved app experience.

Canada, New Zealand and Spain also produced double-digit online growth of 11%, 21% and 28% respectively.

This breadth matters. Entain is not relying on one brand or one country to generate growth, which provides some protection when an individual market encounters difficult sporting results, regulation or competition.

The World Cup delivered strong customer engagement

Entain said first-time depositors during the Men's World Cup were double the number seen during the 2022 tournament.

That suggests improvements to its products and customer experience are having an effect. The group expanded BetBuilder features across several markets and reported strong engagement across its geographically diverse portfolio.

Sports betting results can still create short-term volatility. Entain's first-half online sports margin was 0.5 percentage points lower year on year, although the margin returned to a more normal level during the second quarter.

The stronger second quarter helped group NGR growth accelerate to 7% at constant currency, compared with 4% during the first quarter.

Higher UK tax is squeezing profitability

The main weakness is that revenue growth was not enough to prevent underlying EBITDA from falling 2% to £479.3 million.

Excluding £6.7 million of BetMGM parent fees, underlying EBITDA declined 3% to £472.6 million. Online underlying EBITDA was down 5% at £395 million, although retail EBITDA rose 6% to £142 million.

The central problem was the increase in the UK remote gambling tax rate from 21% to 40% from 1 April 2026. This reduced the contribution margin, while Entain also spent more on marketing around the World Cup.

Within the UK and Ireland online business, revenue rose 13%, but underlying EBITDA fell 8% to £148 million. Its contribution margin dropped from 45.5% to 38.0%.

That is a clear illustration of the challenge. Entain's underlying operations can grow strongly while after-tax economics move in the opposite direction.

Management expects to mitigate approximately 25% of the increased UK online gambling tax impact during 2026. Investors will want evidence that these savings do not damage customer acquisition, retention or product quality.

Why Entain still reported a loss

Entain's continuing operations recorded a loss after tax of £11.4 million, an improvement of £74.4 million from the previous year's £85.8 million loss.

The improvement was helped by a £31.4 million net gain on financial instruments and foreign exchange, compared with an £87.6 million loss in the prior period.

However, the group recorded £187.0 million of separately disclosed items within continuing operations. These included £96.1 million of legal and onerous contract provisions, partly reflecting an increased provision for German player claims.

The statutory result is therefore better than last year, but the continuing loss and scale of separately disclosed costs should not be ignored.

Adjusted diluted earnings per share fell 19% to 20.3p, reflecting lower underlying EBITDA, reduced BetMGM joint venture income and a higher effective tax rate.

The CEE disposal could help reduce debt

Entain is pursuing a phased exit from Entain CEE. It has agreed to sell an initial 20% interest for €425 million, implying a total enterprise value of €2.1 billion and a valuation of approximately 10 times EBITDA.

Completion is expected in early Q4 2026. Entain said proceeds from its eventual full exit would be used to reduce reported leverage below three times, with excess capital returned to shareholders.

This is important because adjusted net debt remained substantial at £3,598.9 million at 30 June 2026, equivalent to leverage of 3.1 times underlying EBITDA.

Available liquidity was £938.6 million, and no material debt maturities fall within the company's going-concern assessment period. Even so, lowering leverage would reduce financial risk and give Entain greater flexibility over future shareholder returns and investment.

BetMGM remains profitable, but expectations have softened

BetMGM generated first-half net revenue of $1.4 billion, up 4% at constant currency, and adjusted EBITDA of $99 million.

Its iGaming operation remained the stronger part of the business, with revenue increasing 8% to $964 million. Online sports revenue rose 2% to $431 million despite heightened competition.

BetMGM maintained its 2026 revenue guidance of $2.9 billion to $3.1 billion and adjusted EBITDA guidance of $300 million to $350 million. However, it now expects results towards the lower end of both ranges.

Management remains confident that BetMGM can generate more than $500 million of adjusted EBITDA in the coming years. Delivery could nevertheless extend beyond the previously anticipated 2027 timeframe if current competition and regulatory complexity persist.

Guidance and the dividend are unchanged

Entain reiterated its main full-year expectations:

• Online NGR growth of 5% to 7% at constant currency
• Group underlying EBITDA, excluding parent fees, of £910 million to £960 million
• Online underlying EBITDA margin of 21% to 22%
• Annual adjusted cash flow of £500 million in 2028

The company-compiled analyst consensus for 2026 EBITDA was £934 million, close to the midpoint of Entain's guidance range.

The interim dividend increased 5% to 10.3p per share. It is due to be paid on 28 September 2026 to shareholders on the register on 21 August 2026.

What matters next for Entain shareholders

These results provide credible evidence that Entain's operating recovery is progressing. Online growth is broad-based, the UK business is gaining momentum and Australia is improving.

The harder question is how much of that growth reaches shareholders after gambling taxes, legal provisions, interest and other costs. EBITDA and adjusted earnings per share both declined despite higher revenue, while leverage remains above management's target.

The next key markers are the completion of the initial CEE disposal, delivery of UK tax mitigation measures and whether BetMGM can move closer to the middle of its guidance ranges. Entain's growth engine appears healthier, but converting that growth into cash and lower debt remains the real test.