Entain reported a robust performance for the first half of 2026, with a 5% increase in net gaming revenue (NGR) year-on-year, reaching €3.0 billion. This growth stemmed from a thriving online business and steady retail results. However, the company faced challenges that affected profitability, including higher gambling taxes and increased regulatory expenses.
Revenue growth was bolstered by a 7% rise in online revenue on a constant-currency basis, alongside a 1% increase in retail sales. The UK, Ireland, Australia, and Canada showed the strongest performances as enhanced player engagement and continuous product upgrades led to more active customers. Notably, Spain emerged as Entain's fastest-growing online market in continental Europe, with NGR increasing by 28% on a constant-currency basis.
Entain attributed much of its success to various product enhancements rolled out before the 2026 FIFA World Cup, focusing on improvements in its sportsbook and mobile experience. Significant growth was observed in both sports betting and gaming sectors across the UK and Ireland, while Canada continued its sustained expansion, resulting in improved execution in key regulated markets.
CEO Stella David highlighted that the results reflect the strength of Entain’s operational model and the ongoing investments in technology and products.
Despite the uptick in revenue, profitability faced pressure due to the introduction of new gambling tax frameworks. Underlying EBITDA fell by 2% to €560.7 million, primarily due to increased gambling duties in the UK and other regions following the new remote gambling tax laws enacted in April.
Entain's tax obligations rose significantly, with the effective tax rate climbing to 34.4% from 30.3% the previous year. Total tax payments exceeded €108.9 million, which impacted operating profitability despite revenue growth. Underlying operating profit declined by 10% to €372.1 million and the gross margin decreased to 60%. The company also maintained high marketing expenditures, totaling €18.7 million during the World Cup to take advantage of increased customer engagement.
Additional disclosed expenses came to €218.8 million, which included €112.5 million allocated for legal provisions tied to ongoing claims from German players. In a positive turnaround, Entain achieved a pre-tax profit of €54.3 million, compared to a loss of €77.6 million in the same period in 2025, while the after-tax loss decreased significantly.
Challenges persisted in Brazil, where the newly regulated market struggled due to stiff competition. Constant-currency NGR in Brazil dropped by 25%, attributed to aggressive promotional efforts and unfavorable sportsbook margins in the first quarter. However, customer engagement saw a 10% increase in total sports wagers during this timeframe. Entain plans to focus on profitability versus market share, maintaining a careful strategy for customer acquisition and positioning Sportingbet as a key part of its Brazilian operations.
Additionally, the company made progress in its planned exit from Central and Eastern Europe, agreeing to sell an initial 20% stake in Entain CEE to EMMA Capital for €425 million, valuing the business at around €2.1 billion. This segment generated €314.7 million in NGR and €111.2 million in underlying EBITDA during the first half. The transaction is anticipated to conclude in the fourth quarter of 2026, with the management indicating that proceeds from a complete sale would bring group leverage below three times EBITDA, even before considering future capital returns to shareholders.
Looking ahead, Entain maintained its full-year expectations, projecting online NGR growth between 5% to 7% and underlying EBITDA ranging from €1.06 billion to €1.12 billion for 2026. The company reiterated its long-term goal of achieving €585 million in annual adjusted cash flow by 2028, reflecting confidence in ongoing operational enhancements and disciplined capital management supporting sustained growth.
