Entain is targeting three out of the 15 available iGaming licenses in New Zealand, as stated by CEO Stella David during the FY25 results call. The call revealed that the group’s net gaming revenue increased by 8%, reaching £5.3 billion.
In her remarks on potential growth markets, David mentioned that New Zealand was not part of Entain's forecasts for 2026 or 2027. However, CFO Rob Wood indicated that the company anticipates capturing up to half of the country’s projected £600 million market. The New Zealand iGaming market is expected to launch in 2027, with the licensing process beginning in July, according to the country’s Department of Internal Affairs. David emphasized that Entain, through its exclusive betting brand TAB, is uniquely positioned as the only online operator capable of cross-selling between sports and iGaming.
There had been previous discussions about whether TAB could apply for an iGaming license since it holds a betting monopoly. However, both David and Wood expressed strong optimism about the opportunities this represents for the company.
In other developments, David introduced a new plan for Entain to achieve £50 million in savings aimed at countering the anticipated financial repercussions of increased Remote Gaming and Remote Betting duties in the UK. Initially, the company had a savings target of £25 million, which has now been doubled. David explained that Entain’s focus has had to adjust “to reflect the next stage in its journey,” emphasizing an increased emphasis on cash generation. The company expects to deliver £500 million in annual adjusted cash flow by 2028.
Part of this strategy includes ongoing refinements to bonusing aimed at enhancing player retention and closing product gaps. David reported that the customer acquisition rate is comfortably above 15% and noted that further improvements are needed in terms of “cost of sales and optimizing marketing rates as a percentage of NGR.”
The CEO also highlighted the AI-enablement program as a contributor to cost savings, noting its role in enhancing the customer experience and accelerating technological developments.
Due to these initiatives, Entain expects to maintain a trajectory of single-digit growth in 2026 and aims to capture additional market share in the UK, especially as smaller competitors face challenges.
In the UK & I market, Entain achieved a 15% growth online during 2025, driven by an 18% increase in gaming NGR, while sports NGR rose by 7% over the same 12-month period, influenced by results in Q4. The operator reported an increase in its market share in the UK this year and secured podium positions in 13 of its 16 live markets globally.
When asked about its position in the UK, where one analyst noted that Entain is “materially outperforming its largest competitor,” David attributed the growth to improved customer journeys and a refreshed Ladbrokes experience, including the recent introduction of a bet builder for racing.
For the 12-month period, Entain’s gross profit reached £3.2 billion, a 3% increase compared to 2024, while underlying EBITDA grew by 7% to £1.2 billion. The company’s profitability and cash flow benefited from better-than-expected returns from BetMGM.
Looking ahead to 2026, Wood expects online NGR growth of 5-7% year-on-year, alongside “broad-based growth across the portfolio.” He anticipates that total group EBITDA, including contributions from BetMGM, will remain stable despite the significant rise in UK taxes.
