Entain (LSE:ENT), the global sports betting and gaming group, reported group net gaming revenue up 5% at constant currency for the six months to 30 June, ahead of expectations, with both its online and retail arms outperforming.
Underlying EBITDA fell 2% year-on-year to £479m, as revenue outperformance was more than offset by the impact of the UK's increased online gambling tax.
Online net gaming revenue rose 7% at constant currency, driven by 9% volume growth and stronger than expected performances in the UK and Ireland (up 13%) and Australia (up 13%). The group swung to a loss after tax of £11.4m, an improvement of £74m year-on-year, largely reflecting a net benefit from financial instruments and foreign exchange movements. Entain declared an interim dividend of 10.3p per share, up 5% year-on-year, in line with its progressive dividend policy. Net debt stood at £3,599m, with leverage flat year-on-year at 3.1 times and available cash of £0.9bn at period end.
"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", said chief executive Stella David.
Entain agreed an initial 20% divestment of its Entain CEE joint venture at €425m, implying a total enterprise value of €2.1bn, with completion expected in early in the fourth quarter. Proceeds from a full exit will go toward cutting group leverage below 3 times, with excess capital returned to shareholders.
Entain reiterated full-year guidance for online net gaming revenue growth of 5-7% at constant currency, and group underlying EBITDA (excluding parent fees) of £910m to £960m, in line with market expectations.
News Intelligence what this means for the company
Entain beat revenue expectations with 5% net gaming revenue growth at constant currency in H1, driven by 7% online growth and strong performances in the UK, Ireland, and Australia. The company is executing a phased exit from Central and Eastern Europe via a €425m initial 20% divestment (implying €2.1bn total value), with proceeds earmarked to reduce leverage below 3x and return excess capital to shareholders—a capital-efficient deleveraging path that addresses the structural headwind of the UK's increased online gambling tax, which offset revenue gains and cut underlying EBITDA 2% to £479m.
The revenue beat and maintained full-year guidance (5–7% online growth, £910–960m EBITDA) show resilience despite UK tax headwinds. The CEE exit at a €2.1bn enterprise value and commitment to sub-3x leverage signals disciplined capital allocation, though the £3.6bn net debt position and flat 3.1x leverage year-on-year mean deleveraging remains a multi-quarter process dependent on execution of the full divestment.
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Richard Hunter, analyst at interactive investor, said that Entain shows pockets of operational strength but remains constrained by regulation.
The broker rates the stock as a "strong buy", and Thursday's call highlights phased disposals - including the CEE stake sale - as the central route to cut net debt and free up capital for shareholders. Hunter, meanwhile, cautions that delivery is the main risk and adds that intensified US competition may push back BetMGM's earnings timetable despite a currently respectable c.3.6% yield.
