ii view: a buying opportunity as Entain slump continues?
Shares in this FTSE 100 company are down by close to a third so far in 2026. We assess prospects.
30th March 2026 11:42
by Keith Bowman from interactive investor
Full-year results to 31 December
- Currency adjusted Net Gaming Revenue (NGR) up 4% (ex BetMGM)
- Currency adjusted NGR up 8% (inc BetMGM)
- Adjusted profit (EBITDA) up 8% to £1.16 billion (ex BetMGM)
- Adjusted profit (EBITDA) up 28% to £1.24 billion (inc BetMGM)
- Loss of £680.5 million, up from the prior year’s loss of £461 million
- Loss includes a £488 million charge regarding new UK taxes
- Final dividend of 9.8p per share
- Total 2025 dividend payment up 5% to 19.6p per share
- Adjusted net debt and including lease liabilities of £3.64 billion, up from £3.55 billion in late June
Guidance:
- Remains comfortable with City forecasts for adjusted full year 2026 profits (EBITDA) and excluding BetMGM of around £1.13 billion
Chief executive Stella David said:
"2025 has been a successful year for Entain. We are continuing to drive strong underlying momentum and I am immensely proud of our strategic and operational progress and the results it is delivering.
“Entain's diverse and globally scaled portfolio of podium positions, is more important than ever to ensure we are a long-term winner in our industry. The business has never been in better shape and is well positioned to not only navigate the tax and regulatory challenges facing our industry, but to seize them as opportunities.
“I am excited about the future as we evolve our strategic priorities, accelerate our performance, and maintain our focus on sustainable growth and cash generation."
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ii round-up:
Sports betting and gaming company Entain (LSE:ENT) operates both online and via the High Street.
Entain’s sports betting brands include Ladbrokes, Coral, bwin and Sportingbet. Gaming related brands take in CasinoClub, Foxy Bingo, Gala and PartyCasino.
The FTSE 100 company also operates in the USA via a 50/50 joint venture with MGM Resorts International and under the brand BetMGM brand, as well as in more than 30 other markets across the world.
For a round-up these latest results announced on 5 March, please click here.
ii view:
Tracing its Ladbroke Coral history back to 1886, the former GVC Holdings today employs over 23,000 people. The online business generated most underlying operating profits over this latest financial year at 84%, with the Retail business which covers its high shops making up the balance of 16%. Geographically, the UK and Ireland accounted for most revenues during 2025 at 42%. That was followed by the rest of Europe at 38%, the rest of the world 11% and Australasia the balance of 10%.
For investors, stretched government finances globally, plus the relative political ease of raising taxes on gambling, is underlined by the £488 million charge taken during this latest financial year for new UK taxes. Heightened energy prices globally and pressured consumer spending may now reduce customer demand. Group adjusted net debt of £3.64 billion compares to a stock market value of £3.45 billion, while competition for the group’s BetMGM joint venture remains intense and includes rivals such as DraftKings Inc Ordinary Shares - Class A (NASDAQ:DKNG) and Flutter Entertainment (LSE:FLTR) business FanDuel.
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More favourably, targeted annual cost savings of at least £100 million per year are now being pursued. Entain’s geographical diversity includes exposure to the UK and Ireland, parts of Europe including Italy, Australasia, Brazil, Canada and the USA via BetMGM. Management remains confident in the outlook and expects at least £500 million of annual cashflows by 2028, while a forecast dividend yield near 4% compares to no payout at rivals Flutter or Evoke (LSE:EVOK).
In summary, Entain remains a volatile share and trades not far off a six-year low. So, while it may not be one for more cautious investors, last year it took less than four months for shares to recover from similar levels to the current consensus analyst fair value estimate above £10 per share. There's no guarantee the same will happen this time.
Positives:
- Diversity of business type and geographical locations
- Paying a dividend (not guaranteed)
Negatives:
- Increased UK taxes
- Pressured consumer spending
The average rating of stock market analysts:
Buy
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