Entain H1 Earnings Call Highlights

Entain reported strong first-half growth: Online net gaming revenue increased 7% in constant currency, group EBITDA reached £479 million, and major markets including the U.K., Spain, Canada and Australia-New Zealand delivered double-digit growth.

Higher U.K. gambling taxes pressured profits, causing a £56 million EBITDA impact after the tax rate rose to 40%. Entain plans mitigation measures and cost savings expected to deliver £100 million in annualized run-rate savings by the end of 2027.

Full-year guidance was maintained for online NGR growth of 5%–7% and a 21%–22% online margin, despite uncertainty in Brazil and increased marketing investment.

Entain is also pursuing a phased exit from Entain CEE, with initial €425 million proceeds earmarked for debt reduction.

Entain reported a strong first half for 2026, with online net gaming revenue rising 7% in constant currency and group EBITDA reaching £479 million, as growth in major markets helped offset higher U.K. gambling taxes and pressure in Brazil. The company’s online business recorded its ninth consecutive quarter of growth, while both online and retail operations performed ahead of expectations. The U.K., Spain, Canada, and Australia-New Zealand delivered double-digit growth.

The company also highlighted the World Cup as a major customer-acquisition event. Entain said first-time deposits during the tournament were double the level seen during the prior World Cup, while Bet Builder stakes more than doubled versus the prior tournament.

Chief Financial Officer Michael Snape said group net gaming revenue, excluding the Entain CEE business that is being moved to discontinued operations, increased 5% in the first half on a constant-currency basis. Online revenue rose 7%, supported by 9% volume growth, continued iGaming momentum and sports margins that normalized during the second quarter after customer-friendly results in the first quarter and April.

EBITDA of £479 million included £7 million of parent fees from BetMGM. The figure was down 2% year over year on a reported basis, reflecting the higher U.K. gaming tax, but was ahead of Entain’s expectations, Snape said. The U.K. tax rate increased to 40% from 21% in April, creating a £56 million negative impact to first-half EBITDA, according to Snape. Foreign exchange provided a £16 million benefit, while strong online performance added £22 million despite a £32 million increase in marketing spending related to World Cup timing and targeted investment.

Entain said it remains on track to offset 25% of the U.K. tax increase this year through mitigation measures. The company also said it expects groupwide optimization programs to generate £100 million of net annualized run-rate savings by the end of 2027, offsetting at least half of the EBITDA impact from the U.K. tax increase.

U.K. and Ireland online NGR and volume each rose 13%. U.K. sportsbook revenue increased 11%, aided by an upgraded Bet Builder offering and the World Cup. International online NGR increased 4%, with volume up 7%. Australia online growth reached 13%, while Spain, New Zealand and Canada also posted double-digit growth. Retail NGR increased 3% on a like-for-like basis in the U.K.

Entain said its international portfolio demonstrated the benefits of diversification, though results varied by market. Australia was a standout, with refreshed brands, broader sports offerings and upgraded app experiences supporting customer engagement and market-share gains. New Zealand also grew at a double-digit rate, while the company cited the potential future regulation of online casinos there as an opportunity. Spain conti...