London-listed sports betting and gaming group Entain (LSE:ENT) reported group net gaming revenue up 2% at constant currency for the third quarter, the three months to 30 September, as strength in the UK and other international markets largely offset a sharp deterioration in Brazil.
Entain said online net gaming revenue rose 3% in the quarter, or 5% excluding Brazil, with gaming growth of 8% partly offset by customer-friendly sports results and the Brazilian market disruption.
UK & Ireland online net gaming revenue jumped 14% in the quarter, which Entain said was ahead of expectations, with volumes up 15%; New Zealand, Spain and Canada also delivered double-digit online growth. Brazil net gaming revenue fell 36% in the quarter, which Entain attributed to disciplined marketing and player engagement in an increasingly challenging market ahead of the government's immediate ban on online gambling announced on 25 September.
Entain confirmed Brazilian operations are complying with the ban, which requires Congressional approval within 120 days to remain in force.
It reiterated the guidance it issued on 28 September: full-year online net gaming revenue growth of 4-6% at constant currency, including the Brazil impact, with underlying EBITDA excluding parent fees expected at the lower end of its £910m to £960m range. Excluding Brazil, Entain said full-year online net gaming revenue growth is expected at the top end of its 5-7% range, with the online underlying EBITDA margin expected at the lower end of 21-22%.
Entain also said BetMGM, its US joint venture, has reconfirmed full-year net revenue guidance of $2.9bn to $3.1bn and adjusted EBITDA guidance of $300m to $350m, with both expected to land toward the lower end of those ranges.
The group's initial 20% divestment of its Entain CEE joint venture, agreed in August at a total enterprise value of €2.1bn, remains on track to close during the fourth quarter.
"The underlying momentum we are seeing across our diverse portfolio supports our confidence in reiterating FY26 guidance," said chief executive Stella David, adding that Entain "remains well positioned to be a long-term industry winner".
The Entain CEO also urged the UK government to "carefully consider any further gambling tax increases" that she said would threaten shops, jobs and livelihoods across the sector.
The bookmaker said it continues to expect the group, including its 47.5% minority stake in Entain CEE, will generate £500m of annual adjusted cashflow in 2028.