ii view: little support for Coral owner Entain

Shares in this gambling giant have underperformed the FTSE 100 index by about 40% year-to-date. Analyst Keith Bowman assesses prospects.

10th September 2026 16:11

by Keith Bowman from interactive investor

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First-half results to 30 June

Total currency adjusted Net Gaming Revenue (NGR) up 5%
Online currency adjusted NGR up 7%
Adjusted profit (EBITDA) down 2% to £479 million
A pre-tax profit of £46.4 million, improved from a loss of £66.3 million last year
Interim dividend up 5% to 10.3p per share
Adjusted net debt and including lease liabilities of £3.6 billion versus £3.64 billion in late December

Guidance:

Continues to expect growth in full-year online NGR of 5-7%
Continues to expect annual adjusted profits (EBITDA) of £910-960 million

Chief executive Stella David said:

"I am pleased with Entain's start to 2026 with strong momentum and volume growth continuing as well as strong player engagement across the Group throughout the World Cup tournament. This performance reflects our strengthening operations and focused execution which reinforces the resilience of our globally scaled business and its ability to consistently deliver high-quality growth.

“We have continued to take decisive strategic actions to deliver shareholder value, including our phased exit of Entain Central and Eastern Europe (CEE) business. Entain is becoming a sharper, fitter, and better-connected business. I am confident our disciplined focus on growth and optimisation will deliver strong future cash-generation, and that Entain remains well positioned to be a long-term industry winner."

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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 sporting related betting brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction, STS and SuperSport.

Gaming related brands take in Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino.

The FTSE 100 company also operates in the USA via a 50/50 joint venture with MGM Resorts International (NYSE:MGM) 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 13 August, please click here.

ii view:

With a history dating back to 1886, the former GVC Holdings today employs over 23,000 people. The online business generated most adjusted profit during this latest period at 74%, with the Retail business covering its high street shops making up the balance of 26%.

Geographically, the UK and Ireland accounted for most revenues at 47%. That was followed by the rest of Europe at 22%, major European market Italy, 12%, Australasia 11%, and the rest of the world 8%.

For investors, stretched government finances globally and the relative political ease of raising taxes on gambling companies cannot be ignored, with Australia and UK Budget events both pending. A forecast share price-to-net asset value above the three-year average may suggest the shares are not obviously cheap. Group net debt of £3.6 billion compares to a stock market value of £3.2 billion, while there's competition for the group’s BetMGM joint venture from rivals such as DraftKings Inc Ordinary Shares - Class A (NASDAQ:DKNG) and Flutter Entertainment (NYSE:FLUT) business FanDuel.

On the upside, a review of the group’s business portfolio has seen a 20% stake in its Central and Eastern Europe (CEE) business sold to reduce net debt. Entain’s geographical diversity still includes exposure to the UK and Ireland, Spain, Belgium, the Netherlands, Germany, Brazil, Canada, as well as the USA via BetMGM. Management outlook confidence persists and includes at least £500 million of annual cashflows by 2028, while a forecast dividend yield of 4.1% compares to no existing payout at industry peers Flutter and Playtech (LSE:PTEC).

On balance, a consensus analyst fair value estimate above £9 per share might suggest optimism in the City. However, others clearly need convincing given the dire share price performance over the past few years.

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

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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