Entain Maintains Fiscal Guidance with Strong Q1 Revenue Growth

Entain has reaffirmed its guidance for fiscal year 2026, aiming for 5% to 7% online net gaming revenue (NGR) growth, following a reported 3% increase in NGR for the first quarter. In the three months ending March 31, 2026, the group's NGR aligned with expectations, driven by an 8% increase in volume. Online NGR rose by 5%, with iGaming particularly strong at a 9% increase, which counteracted a 1% decline in the sports segment due to lower sports margins. The UK and Ireland markets showed impressive growth, with online revenues up 13%, matched by similar results in Australia. Entain highlighted that performance in these regions exceeded expectations. Volume across online operations also grew by 10% year-on-year, indicating positive trends across all core markets. As a result, Entain reiterated its forecast for FY26 online NGR growth between 5% and 7% on a constant currency basis. The company expressed satisfaction with market projections for a FY26 group EBITDA of £1.13 billion, excluding fees from BetMGM’s parent company, as well as annual adjusted cash flow of at least £500 million by 2028. CEO Stella David emphasized that a strong start to the year showcases the company’s confidence in its strategic approach to strengthen its operations. David stated, “We entered 2026 with strong momentum which has continued in Q1, with strong volume growth across our diversified portfolio. This further demonstrates our ongoing strategic execution and strengthening operations, and also highlights the growth embedded in our globally scaled business. Our strong and resilient business has started the year well, and we continue to build on this momentum. Our sharper focus and optimisation initiatives reinforce our conviction in delivering sustainable growth and improving cash generation. Entain remains well positioned to be a long-term industry winner, seizing the many opportunities ahead, and I am confident in our future.” In terms of regional performance, the UK and Ireland NGR across both online and retail segments rose by 6%. The 13% online growth reflected ongoing market share gains and offset a 1% slip in retail performance. In April, Entain announced the closure of 39 Irish Ladbrokes shops, constituting over one-third of its locations in Ireland. Despite the retail decline, Entain continued to exceed the overall UK and Ireland market, showing growth in gaming by 2% and volume by 4%. Internationally, NGR saw a 1% rise, with online growth at 2% while retail faced a 4% decrease. However, volume growth of 9% faced challenges due to favorable sports results for customers, especially in Italy and Brazil. Looking ahead, the company aims to secure three of the 15 available iGaming licenses in New Zealand for 2027 following its FY26 results. However, the Central and Eastern European (CEE) operations reported a setback, with NGR declining 6%. Online operations in the CEE dipped by 1%, but retail saw a notable 30% year-on-year drop. In another noteworthy update, BetMGM, a joint venture between Entain and MGM Resorts International, reported a 6% increase in net revenue for Q1, reaching $696 million. BetMGM's iGaming segment grew by 9%, and online sports betting increased by 4%. The joint venture's adjusted EBITDA for Q1 was $25 million, and it revised its FY26 revenue forecast to range between $2.9 billion and $3.1 billion, with adjusted EBITDA projected to meet the lower end of its previous guidance of $300-350 million.