Entain (LON:ENT) executives used the company’s 2025 results presentation to highlight broad-based online growth, higher EBITDA, a swing to positive adjusted cash flow, and an increasingly explicit focus on cash generation as the group prepares to absorb higher U.K. gambling taxes in 2026.
2025 results: EBITDA ahead of expectations and cash flow turns positive
Management described 2025 as a “strong year” for the group, with growth supported by higher volumes across online operations and improved efficiency. Online volumes rose 7% year-over-year in 2025 and were up 9% in the fourth quarter, with the company logging seven consecutive quarters of online revenue growth.
Entain’s EBITDA excluding the U.S. came in at GBP 1.16 billion, up 8% year-over-year in constant currency and ahead of guidance, despite what Wood described as new taxes in Brazil following the country’s regulatory regime. Including Entain’s share of BetMGM, group EBITDA totaled GBP 1.244 billion, up 28% year-over-year in constant currency. Wood said EPS “more than doubled” to GBP 0.62.
Adjusted cash flow swung from an outflow in 2024 to an inflow of GBP 151 million in 2025, which Wood said was “comfortably ahead of expectations.” He attributed the outperformance to Entain’s EBITDA beat, higher-than-expected cash from BetMGM, and a favorable movement in other cash items including lower interest costs following refinancing efforts.
Market performance: U.K. strength, international mix, and BetMGM profitability
Executives pointed to strong performance in the U.K. and Ireland, where online growth reached 15% and the company said it continued to regain market share. Wood added that U.K. retail gained share as Entain was flat on a like-for-like basis in a market that declined by mid-single digits.
International online NGR rose 2%, trailing 4% volume growth due to “soft margins,” particularly in Brazil and Australia. Wood said international volumes accelerated from 1% growth in the first half to 7% in the second half, helped by lapping regulatory changes in Belgium and the Netherlands from 2024.
In Brazil, Wood said poor sports margins in the second half reduced NGR, leaving full-year growth flat, but volumes increased 13% and market share was maintained. Australia saw customer-friendly sports results that weighed on NGR; Wood said volume growth was better and that a refreshed management team was helping improve performance and profitability. Italy posted online growth of 5% and retail NGR growth of 7%, while Wood said Italy EBITDA grew 8%.
CEE operations in Croatia and Poland delivered growth in both NGR and EBITDA, retaining market leadership, according to Wood.
BetMGM was a major focus. Wood said the joint venture delivered “outstanding” performance, with 33% revenue growth and EBITDA improving by more than $460 million year-over-year as the business moved into profitability. That shift triggered cash returns to parents, with $270 million distributed in 2025, including excess cash from the 2024 year-end. Wood said BetMGM remains on track to deliver approximately $500 million of adjusted EBITDA in 2027.
Margins, efficiency, and what drove the EBITDA beat
Wood said online EBITDA margin exceeded guidance and increased 0.4 percentage points year-over-year, despite a 1.4 percentage point drag from Brazil taxes. He characterized this as an underlying 1.8 percentage point margin improvement driven by scale growth and operational execution.
In Q&A, management was asked how online EBITDA held up despite a weaker fourth-quarter sports win margin (down 1.4 percentage points year-over-year) that left online NGR up only 3% in the quarter while volumes rose 9%. Wood said the key factor was gross profit margin improvement driven largely by cost-of-sales efficiencies, citing savings initiatives including work on payment service providers. He added that marketing spend was in line with plans in the second half.
U.K. tax increases and mitigation plans
CEO Stella David opened the presentation by calling the U.K. government’s decision to “dramatically increase taxes” on the gambling sector “extremely disappointing,” warning it could open the door to illegal black-market operators. She said Entain would continue to invest in the U.K. and seek to gain share from “subscale operators” that are “ill-equipped” to withstand the impact.
For 2026, Wood guided to online NGR growth of 5% to 7% in constant currency, with “broad-based growth across the portfolio.” He said online EBITDA margin is expected to fall to 23% to 24% in 2026 due to higher U.K. gaming taxes, with Entain expecting to mitigate approximately 25% of that cost in 2026. David later said the company has upgraded its mitigation expectation to offset “over 50%” of the U.K. tax impact from 2027 onwards, up from the prior 25% estimate, citing a more detailed roadmap of initiatives.
David said Entain’s priorities are evolving toward more disciplined capital allocation and cash generation, reiterating confidence in achieving at least GBP 500 million in annual adjusted cash flow from 2028. She said cash generation has become an explicit strategic priority, including within incentive structures.
2026 outlook: stable group EBITDA, marketing phasing, leverage, and tax rate
Wood said that while Entain EBITDA (before Parent Fee income that begins in 2026) is expected to show a small year-over-year decline based on current market expectations, EBITDA including the U.S. is expected to be “broadly stable” year-over-year when combined with growth in BetMGM. He said the U.K. tax rise would also delay deleveraging, with look-through leverage expected to be broadly stable in 2026 before improving thereafter.
Additional 2026 items highlighted included:
- Marketing phasing: With 2026 a World Cup year, management expects about 55% of marketing spend in the first half, consistent with prior tournament years, while also noting marketing is expected to increase in absolute terms and can be modeled broadly in line with revenue.
- Effective tax rate: With BetMGM sustainably profitable, Entain’s guidance shifts to an including-U.S. basis, with an expected ETR of 30%, higher than 2025 due to the U.K. tax increase and resulting mix shift.
- BetMGM cash returns: Wood said that while BetMGM EBITDA is expected to grow, cash to parents in 2026 is expected to be broadly neutral compared with 2025 because 2025 included a distribution of 2024 surplus cash.
Management also discussed market-specific themes in Q&A, including the Netherlands (where performance improved from down around 30% at Q3 to down 2% in Q4, according to Wood), and New Zealand, where Entain said it is the government partner and currently the only licensed sports betting operator. David said New Zealand is expected to open to licensed iGaming operators at the end of 2026 or beginning of 2027, with 15 licenses to be issued and Entain expecting to secure three, though she said the opportunity has not been explicitly factored into guidance.
Wood concluded by reiterating that 2026 total group EBITDA, including BetMGM, is expected to be stable year-over-year despite the significant increase in U.K. taxes, supported by what he described as Entain’s diversified podium positions and structural growth profile.
About Entain (LON:ENT)
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world’s largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US.
