H1 net gaming revenue up 5% at constant currency
Entain plc reported group net gaming revenue (NGR) up 5% at constant currency in the six months to 30 June 2026, ahead of the company’s own expectations, as it began a phased exit from its Central and Eastern Europe (CEE) business. Reported NGR from continuing operations rose 7% to £2,545.3m, with both online and retail outperforming.
Group Underlying EBITDA fell 2% year on year to £479.3m (£472.6m excluding parent fees from the BetMGM joint venture, down 3%). Entain said the NGR outperformance was more than offset by the impact of the UK’s higher online gambling tax, which took effect during the period. Group loss after tax narrowed to £11.4m from £85.8m a year earlier, an improvement of £74m driven largely by a net benefit on financial instruments and foreign exchange.
Online NGR rose 7% at constant currency, reflecting volume growth of 9% and stronger than expected performances in the UK and Ireland and Australia. Online Underlying EBITDA fell 5% to £395m, with the division’s margin at 21.4% after Entain CEE was reclassified as a discontinued operation. Retail NGR rose 1% at constant currency and retail Underlying EBITDA grew 6% to £142m.
The board declared an interim dividend of 10.3p per share, up 5% year on year, payable on 28 September 2026 to shareholders on the register as at 21 August. Net debt stood at £3,599m as at 30 June, with reported leverage flat year on year at 3.1x and available cash of £0.9bn.
UK and Ireland leads, Australia extends gains
UK and Ireland NGR rose 8% at constant currency, with online up 13% and retail up 2%, both ahead of expectations. Online gaming NGR in the region rose 13% and online sports NGR rose 11%, with continued volume growth of 13% driving further market share gains. UK and Ireland retail grew 3% like for like, with Q2 sports NGR up 10% on strong volumes and sports margins.
The increase in UK online gambling tax remains the main drag on group profitability this year. Entain expects to offset around 25% of the impact in FY26, and expects its online Underlying EBITDA margin to land between 21% and 22% for the full year once that tax impact and the 20% CEE divestment are both reflected.
Internationally, NGR rose 3% at constant currency, improving through Q2 as sports margin recovered from a weak first quarter. Australia grew online NGR by 13%, which Entain attributed to the ongoing turnaround of the business and further market share gains. Brazil’s NGR fell 25% at constant currency on an adverse Q1 sports margin, though the company said player metrics were improving, with sports wagers up 10% for the half. Italy’s NGR grew 2%, as double digit iGaming growth was offset by player friendly football results that normalised through Q2. Canada, New Zealand and Spain each delivered double digit online NGR growth of 11%, 21% and 28% respectively.
Entain said its geographically spread portfolio benefited from strong player engagement during the Men’s World Cup, with first time depositors across its brands double the number recorded during the 2022 tournament.
Phased exit from Entain CEE
Entain has agreed to sell an initial 20% stake in Entain CEE to joint venture partner EMMA Capital for €425m, implying a total enterprise value for the business of €2.1bn, around 10 times EBITDA. The deal cuts Entain’s stake in the joint venture, which houses STS in Poland and SuperSport in Croatia, from 67.5% to 47.5%, while EMMA’s stake rises from 22.5% to 42.5%. Completion is expected in early Q4 2026, subject to regulatory approval.
Entain said proceeds from its eventual full exit of Entain CEE will be used to bring group reported leverage below 3x, with any excess capital returned to shareholders. Entain CEE’s own NGR grew 2% at constant currency in H1, with online up 7% and retail down 22%; the segment is now reported as a discontinued operation in the group accounts.
“We have continued to take decisive strategic actions to deliver shareholder value, including our phased exit of Entain CEE. Entain is becoming a sharper, fitter, and better connected business. I am confident our disciplined focus on growth and optimisation will deliver strong future cash-generation, and that Entain remains well positioned to be a long-term industry winner,” said Stella David, CEO of Entain.
FY26 guidance reiterated
Entain reiterated its FY26 guidance of online NGR growth of 5-7% at constant currency, and said it remains comfortable with market expectations for group Underlying EBITDA, excluding parent fees, of £910m to £960m. BetMGM, the group’s US joint venture, reconfirmed FY26 revenue guidance of $2.9bn to $3.1bn and adjusted EBITDA guidance of $300m to $350m, with Entain expecting the joint venture to land towards the lower end of both ranges.
The group also restated its target, including its 47.5% minority stake in Entain CEE, of generating £500m of annual adjusted cashflow in 2028. With the CEE divestment expected to close in early Q4 and the UK tax increase now built into full year guidance, Entain’s next update will show whether the online growth seen through the World Cup can be sustained without the CEE contribution that has underpinned group profitability for years.
Source: Entain plc
