Entain (LON:ENT) reported third-quarter growth in online revenue, supported by market-share gains in the U.K. and double-digit expansion in several international markets, while customer-friendly sports results and continued uncertainty in Brazil weighed on reported performance.
Group net gaming revenue, or NGR, rose 2% at constant currency during the quarter. Online NGR increased 3%, while retail revenue was flat on a like-for-like basis. Excluding Brazil, online NGR increased 5%, driven by a 7% rise in volumes. For the year to date, online NGR excluding Brazil was up 8%, ahead of the company’s prior 5% to 7% growth guidance range.
Gaming Growth Offsets Sports Margin Pressure
Gaming NGR rose 8% in the quarter, while sports NGR declined 3% as customer-friendly results more than offset a strong finish to the World Cup in July. Retail NGR declined 2%, despite a 2% increase in volumes, reflecting the same sports-margin pressure.
“Those headline growth rates belie much stronger underlying performance,” Snape said, pointing to the impact of sports results and challenges in Brazil.
In the U.K. and Ireland, online NGR rose 14%, with volumes up 15%. Online sports revenue grew 3% despite the adverse margin impact, while gaming revenue accelerated 17%. Like-for-like U.K. retail NGR rose 3% as both sports and gaming performed well.
The company said its U.K. progress reflected improvements to its products and apps, more disciplined investment and operational execution. Management cited refreshed Ladbrokes app features, changes to the customer economics at the Foxy and Gala brands, and external benchmarking recognition for its Ladbrokes and Coral applications.
Entain said it had not yet seen a major shift in the U.K. competitive environment following higher gaming taxes introduced in April, although it expects effects on competitor investment and illegal-market activity to emerge over time. The higher tax on sports betting is scheduled to begin in April of the following year, according to management.
International Results Mixed as Brazil Remains Volatile
International NGR declined 4% and international online NGR fell 3%, reflecting Brazil’s market disruption and weak sports margins in Europe. Excluding Brazil, international online NGR rose 1%, while management said volumes in the rest of international markets were up about 3%.
Brazil was shut down under a provisional measure on Sept. 25, according to the company. Management said Entain had already taken a selective approach to investment in the country before the closure, choosing not to pursue volume growth at the expense of profitability.
The company said it is planning for multiple potential outcomes as Brazil’s regulatory situation develops. Management expects the market could reopen in some form, but said it would return with “proportionate and sensible” investment. Entain’s Sportingbet brand has long-standing recognition in Brazil and is predominantly focused on sports betting, management said.
In Italy, sports margins fell by more than three percentage points year over year, though volumes rose 9%. Snape said Entain has installed a new team to review the Eurobet brand’s retail operations, online technology, marketing deployment and use of group-wide tools. He said the company expects to provide a more detailed update at its full-year results.
Elsewhere, Spain, New Zealand and Canada each delivered double-digit growth despite unfavorable sports outcomes. Australia grew in line with expectations, and Entain CEE posted 4% online growth alongside double-digit volume growth.
New Zealand Opportunity and Regulatory Considerations
Entain said it secured the three New Zealand licenses it sought and expressed confidence in the opportunity, citing its existing relationship through TAB New Zealand, where it is the sole sports-betting provider. Management said it did not expect the New Zealand market to develop in a manner comparable to Brazil.
On Austria, Snape said a proposed nine-month cooling-off period for operators could take effect at some point in 2027 if adopted. While this could affect online NGR growth, he said the EBITDA impact would be “pretty de minimis,” as the business’s recent profitability has been pressured by player claims. He added that Entain believes it is well positioned to compete if Austria becomes properly regulated.
Cash Generation, Costs and U.K. Retail Tax Risk
Entain reiterated its £500 million 2028 free-cash-flow target, although Snape said the company expects to articulate the cash-generation outlook differently at its full-year update. He emphasized that management remains focused on optimizing costs, improving cash generation and reducing leverage.
The company does not plan to announce a separate large-scale cost-savings initiative, according to Snape. Instead, he said cost optimization is being incorporated into day-to-day management of the business, following prior headcount reductions and other efficiency actions.
Management also warned against a potential increase in U.K. machine gaming duty from 20% to 40%, which has been the subject of media speculation. Entain said 630 betting shops have already closed across the industry since the prior year, and cited independent analysis suggesting that a higher rate could lead to roughly 1,500 additional industry shop closures and about 16,000 lost jobs.
While the company said it has mitigation plans should tax changes occur, it remains focused on lobbying against an increase. Management said Entain’s U.K. retail estate and online brands would be comparatively well positioned to manage disruption and potentially gain share, but stressed that shop customers do not necessarily migrate to online betting.
Looking ahead, Entain maintained confidence in its 2026 guidance. Snape noted that the company expects a somewhat softer fourth quarter after the strong year-to-date performance excluding Brazil, while emphasizing that sports-margin volatility remains outside management’s control.
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.
