Entain reported a robust first half for 2026, posting a 5% increase in net gaming revenue (NGR) year-on-year, reaching €3.0 billion. This growth was fueled by sustained online business activity and strong retail performance. However, profitability faced pressure from increased gambling taxes and regulatory costs, which limited earnings growth despite the favorable revenue figures.
The company's performance surpassed management's expectations, with online revenue rising by 7% on a constant-currency basis and a 1% increase in retail revenue. The UK & Ireland, Australia, and Canada were particularly strong markets, benefiting from enhanced player engagement and ongoing product innovations. In Europe, Spain shone as Entain's fastest-growing online market, boasting a 28% rise in NGR in constant currency.
Entain attributed much of this growth to product enhancements rolled out ahead of the 2026 FIFA World Cup, which included significant upgrades to its sportsbook and mobile platform. The UK and Ireland saw double-digit growth across both sports betting and gaming, alongside ongoing expansion in Canada, indicating effective execution in several of Entain's major regulated markets.
CEO Stella David commented that the results reflect the resilience of Entain's operating model and the advantages of continuous investment in product and technology.
Despite the revenue surge, profitability declined due to new gambling tax regulations. Underlying EBITDA fell by 2% to €560.7 million, primarily impacted by increased gambling duties in the UK and other regulated regions, which began under a new remote gambling duty framework implemented in April.
Entain's effective tax rate escalated from 30.3% to 34.4%, with total tax payments exceeding €108.9 million, which contributed to the downward pressure on operating margins despite higher revenues. Underlying operating profit dropped by 10% to €372.1 million, while gross margin eased to 60%. The company maintained a high level of marketing investment during the World Cup, spending €18.7 million to engage customers more effectively.
Additional items disclosed reached €218.8 million, including €112.5 million allocated for legal provisions related to ongoing claims from German players. In a brighter note, Entain achieved a return to pre-tax profitability, recording a profit of €54.3 million compared to a loss of €77.6 million in the same period of 2025. The group's after-tax loss also showed a significant narrowing.
In Brazil, performance remained difficult as the newly regulated market proved to be highly competitive, resulting in a 25% decline in constant-currency NGR due to intensified promotional efforts and adverse sportsbook margins early in the year. However, customer engagement improved over the period, with total sports wagers increasing by 10%. Entain emphasized that it would prioritize profitability over market share, with a strategy focused on stable customer acquisition, placing Sportingbet at the core of its Brazilian operations.
Entain also progressed on its previously stated exit from Central and Eastern Europe, agreeing to sell a 20% stake in Entain CEE to EMMA Capital for €425 million, which values this segment at around €2.1 billion. The regional business reported €314.7 million in NGR and €111.2 million in underlying EBITDA during the first half. The completion of this transaction is expected in the fourth quarter of 2026. Management indicated that total proceeds from the full divestment would bring down group leverage to below three times EBITDA before considering future shareholder returns.
Looking ahead, Entain maintained its full-year guidance despite rising regulatory expenses. The company continues to forecast online NGR growth between 5% and 7% and an underlying EBITDA between €1.06 billion and €1.12 billion for 2026. Entain reaffirmed its long-term target of generating €585 million in annual adjusted cash flow by 2028, reflecting confidence in sustainable growth driven by ongoing operational improvements and disciplined capital allocation.
