Entain (LSE: ENT) reported stronger-than-expected revenue growth in the first half of 2026, with performances across online and retail operations both contributing to the beat.
Net gaming revenue rose 5% on a constant-currency basis, exceeding market expectations, while online NGR advanced 7% over the same period.
Higher volumes and increased player engagement, including activity tied to the Men’s World Cup, helped drive the improvement across the group’s key markets.
Particularly strong trading was recorded in the UK and Ireland and Australia, providing meaningful support to the top-line result during the half.
However, increased UK taxation on online gambling placed pressure on profitability, resulting in underlying EBITDA finishing slightly below the level recorded in the corresponding period last year.
The group reported a loss after tax of £11.4 million, although this represented an improvement compared with the prior year’s equivalent figure.
Despite the earnings pressure, Entain raised its interim dividend by 5%, signalling continued confidence in the group’s ability to generate cash over the medium term.
Leverage stood at 3.1 times at the period end, while management maintained its full-year expectations for online growth and underlying EBITDA.
Alongside its first-half results, Entain outlined a significant portfolio move through a planned phased withdrawal from its Entain CEE operation.
The process will begin with the sale of a 20% interest in the business, with the transaction implying an enterprise value of €2.1 billion for Entain CEE.
The implied valuation provides a useful benchmark for the operation while giving Entain a structured route to gradually release capital from the asset over time.
Proceeds from future stages of the disposal are expected to be directed initially towards reducing debt, with management targeting leverage below three times before considering shareholder returns.
Once that deleveraging objective is achieved, additional proceeds could potentially be returned to shareholders depending on the group’s capital requirements and overall financial position.
The CEE exit forms part of Entain’s wider effort to simplify its portfolio and build a more focused, cash-generative business capable of delivering more predictable financial results.
Progress at BetMGM also provides some support for the broader outlook, with management highlighting improving profitability at the U.S. joint venture as it continues to mature.
Continued gains at BetMGM could strengthen Entain’s overall earnings and cash flow profile, providing an additional lever as the group pursues its strategic simplification.
Nevertheless, the higher UK online gambling tax burden, which rose from 21% to 40% from 1 April on online gambling duty, represents a meaningful and ongoing headwind for the group’s margins.
Technical indicators remain relatively weak, with Entain shares trading below important moving averages, limiting near-term valuation support amid the group’s current earnings position.
Entain is a London-listed global sports betting and gaming group operating across online and retail markets in regions including the UK and Ireland, Continental Europe, Australia, and other international territories.
The group says it remains focused on online growth, disciplined capital allocation, and improving cash generation as major sporting events continue to drive customer activity across its markets.
