Entain reports strong H1 results despite tax impact
Net gaming revenue was up 5 per cent year-on-year.
UK.- Entain has hailed stronger-than-expected results for the first half of 2026. The group posted a five per cent rise in net gaming revenue (NGR), to £2.55bn. Online operations grew seven per cent on a constant currency basis, while retail advanced one per cent.
Performance was driven by 13 per cent gains in the UK & Ireland and in Australia and 11 per cent growth in Canada, supported by higher player engagement and product upgrades during the World Cup. However, Spain stood out as Entain’s fastest-growing European market, with online NGR up 28 per cent.
Things were weaker in Brazil, with NGR down 25 per cent on a constant-currency basis due to adverse sports margins and fierce competition. However, sports wagers rose 10 per cent. Management emphasised a disciplined approach focusing on returns over aggressive marketing.
Meanwhile, the Entain CEE business, in which the London-listed operator is reducing its stake, delivered £269m in NGR and £95m in EBITDA in H1. This is now classified as a discontinued operation, with completion of the transaction expected in early Q4.
Entain’s underlying EBITDA slips but quarterly loss narrows
Despite top-line growth, underlying EBITDA slipped two per cent to £479.3m due to tax rises, including the increase in Remote Gaming Duty in the UK from April. Entain’s corporate tax charge rose sharply from £19.5m to £57.8m, with its effective tax rate climbing from 30.3 to 34.4 per cent. Group tax receipts more than doubled to £93.1m, largely due to the UK’s tax hike.
Operating profits fell 10 per cent to £318.9m, while group operating profit dropped to £131.9m. Gross profit margins narrowed to 60 per cent. Despite the intention to absorb the tax bit, Entain increased marketing spend to £16m during the World Cup. The company also booked £187m in separately disclosed items, including £96.1m in legal provisions related to German player claims and £16m in technical upgrades under Project Romer.
Nevertheless, pre-tax profit improved to £46.4mn, compared with a £66.3m loss in H1 2025, and the loss after tax narrowed from £85.8m to £11.4m.
Chief Executive Officer Stella David commented: “I am pleased with Entain’s start to 2026 with strong momentum and volume growth continuing as well as strong player engagement across the Group throughout the World Cup tournament. This performance reflects our strengthening operations and focused execution which reinforces the resilience of our globally scaled business and its ability to consistently deliver high-quality growth.”
“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.”
Entain has reaffirmed its full-year guidance, targeting online NGR growth of five to seven per cent on a constant-currency basis and underlying EBITDA of £910mto £960m. The group expects online EBITDA margins of 21 to 22 per cent and aims to mitigate around 25 per cent of the impact of the UK’s increased online gambling tax this year. Longer-term, Entain continues to target £500m in annual adjusted cash flow from 2028, balancing growth, tax mitigation, debt reduction and shareholder returns.
