Entain reported stronger-than-expected results for the first half of 2026, with net gaming revenue (NGR) rising 5% year-on-year to £2.55 billion. Online operations grew 7% on a constant-currency basis, while retail revenue increased 1%.
The group benefited from stronger player engagement and product improvements during the World Cup. As a result, the UK and Ireland and Australia both recorded 13% growth, while Canada increased 11%. Spain also stood out as Entain’s fastest-growing European market, with online NGR climbing 28%.
However, performance varied across markets. Brazil recorded a 25% decline in NGR on a constant-currency basis, mainly due to adverse sports margins and intense competition. Despite the decline, sports wagers increased 10%. Entain said it continues to prioritise returns over aggressive marketing in the market.
Entain CEE Delivers Strong H1 Contribution
Entain CEE, in which Entain is reducing its stake, generated £269 million in NGR and £95 million in EBITDA during the first half.
The business now appears as a discontinued operation as Entain moves forward with the transaction. The group expects the deal to complete in early Q4.
Higher Taxes Weigh on EBITDA
Despite revenue growth, Entain’s underlying EBITDA declined 2% to £479.3 million. Higher taxes, including the UK’s increase in Remote Gaming Duty from April, put pressure on profitability.
Entain’s corporate tax charge increased from £19.5 million to £57.8 million, pushing its effective tax rate from 30.3% to 34.4%. Meanwhile, group tax receipts more than doubled to £93.1 million, largely because of the UK tax increase.
Operating profit also fell 10% to £318.9 million, while group operating profit reached £131.9 million. Gross profit margins narrowed to 60%.
Nevertheless, Entain increased marketing investment to £16 million during the World Cup despite its efforts to absorb higher tax costs. The company also recorded £187 million in separately disclosed items, including £96.1 million in legal provisions related to German player claims and £16 million in technical upgrades under Project Romer.
Pre-Tax Loss Narrows Significantly
Despite the pressure on profitability, Entain substantially improved its bottom line. Pre-tax profit reached £46.4 million, compared with a £66.3 million loss in the first half of 2025.
Moreover, the group reduced its loss after tax from £85.8 million to £11.4 million.
Entain CEO Stella David said the company entered 2026 with strong momentum, higher volumes, and solid player engagement throughout the World Cup. She attributed the performance to strengthening operations and focused execution across the group.
David also described Entain as a “sharper, fitter, and better connected” business, adding that its focus on disciplined growth and optimisation should support future cash generation.
Entain Maintains Full-Year Guidance
Entain has reaffirmed its full-year outlook despite the tax pressure. The group continues to target 5% to 7% online NGR growth on a constant-currency basis and underlying EBITDA of £910 million to £960 million.
The company also expects online EBITDA margins to reach 21% to 22%. In addition, Entain aims to mitigate around 25% of the impact from the UK’s higher online gambling tax during 2026.
Looking further ahead, the group continues to target £500 million in annual adjusted cash flow from 2028. Entain plans to balance continued growth with tax mitigation, debt reduction, and shareholder returns.
Overall, Entain’s H1 performance highlights the group’s ability to deliver revenue growth despite rising tax costs. While higher duties continue to pressure margins, stronger player engagement, product improvements, and disciplined market strategies provide a foundation for its full-year targets.
