Shares in Entain PLC (LSE:ENT) jumped 5.7% to 611p after the Ladbrokes, Coral and Foxy Bingo owner reported full-year results ahead of expectations and struck an upbeat tone on its ability to absorb a looming increase in UK gaming duty.
The bookmaker's group net gaming revenue rose 3% to £5.3 billion in 2025, with online up 5% to £3.9 billion in line with forecasts.
Group EBITDA climbed 8% to £1.16 billion on a constant currency basis, with online EBITDA of £1 billion and retail of £277 million both beating consensus.
Chief executive Stella David said the FTSE 100 business had "never been in better shape" and was well positioned to navigate tax and regulatory headwinds, with Entain now expecting to offset more than 50% of the incremental UK gaming duty burden from 2027, upgraded from a previous commitment to offset some of the increase.
The group reaffirmed confidence in generating at least £500 million of annual adjusted cashflow from 2028 and guided for online NGR growth of 5-7% in 2026 on a constant currency basis.
Peel Hunt analyst Ivor Jones said: "The UK, the US and Italy were strong for Entain in FY25, and there is enough diversity in the portfolio to be confident of revenue growth in FY26E.
"We intend to review our 'add' recommendation and 850p target price after the analysts’ meeting."