Entain PLC (LSE:ENT) (LSE) delivered a stronger-than-expected first-half performance as growth across its online and retail businesses lifted net gaming revenue, while the Ladbrokes and Coral owner reiterated its 2026 earnings guidance and plans to generate around £500 million in annual adjusted cash flow by 2028.
Group net gaming revenue (NGR) from continuing operations increased 5% year-on-year on a constant-currency basis during the six months to June 30, 2026, with online NGR up 7%.
The online performance reflected 9% growth in gaming NGR and a 4% increase in sports, supported by 9% underlying volume growth and stronger customer engagement around the Men's World Cup.
Underlying group EBITDA was £479 million, down 2% year-on-year, or £473 million excluding fees received from the BetMGM joint venture.
Entain reported a loss after tax of £11.4 million from continuing operations, an improvement of £74 million compared with the previous corresponding period.
Adjusted diluted earnings per share were 20.3p, while the board declared a 10.3p interim dividend, up 5% year-on-year.
Online and retail operations drive growth
The UK and Ireland remained a key contributor, with NGR increasing 8% on a constant-currency basis during the half.
Across the wider group, online NGR rose 7%, reflecting improved player engagement and product performance. Entain said first-time depositors during the Men's World Cup were double those recorded during comparable major sporting events.
Retail NGR increased 1% on a constant-currency basis, while retail underlying EBITDA rose 6% to £142 million.
Online underlying EBITDA was £395 million, down 5% year-on-year.
Chief executive Stella David said the first half demonstrated continued momentum and volume growth across the group, adding that management remained focused on improving operational performance and cash generation.
Entain progresses CEE exit
Entain also highlighted its planned phased exit from Central and Eastern Europe as part of efforts to simplify the business and reduce debt.
The company agreed in June to sell a 20% stake in Entain Holdings CEE to joint venture partner EMMA Capital for around €425 million, comprising €395 million payable on completion and an additional payment in early 2027 linked to 2026 financial performance.
The transaction values Entain CEE at an enterprise value of around €2.1 billion and is expected to complete in the fourth quarter of 2026, subject to regulatory approvals.
Proceeds will be directed toward debt reduction, with Entain estimating around £20 million in annual interest savings. The company intends to evaluate options for exiting its remaining CEE holding, with future proceeds expected to support a reduction in group leverage below 3 times and potential capital returns to shareholders.
At June 30, Entain had net debt of £3.60 billion and reported leverage of 3.1 times, alongside around £900 million of available cash.
BetMGM maintains profitable growth
Entain's 50%-owned BetMGM joint venture generated first-half net revenue of around US$1.4 billion, up 4% year-on-year, and adjusted EBITDA of US$99 million.
BetMGM has maintained its 2026 guidance for net revenue of US$2.9 billion to US$3.1 billion and adjusted EBITDA of US$300 million to US$350 million, although it expects results toward the lower end of those ranges.
The North American business held a 13% gross gaming revenue market share across its active markets, including 20% in iGaming and 8% in online sports betting.
Next steps
Entain reiterated guidance for 2026 online NGR growth of 5%-7% on a constant-currency basis and group underlying EBITDA, excluding BetMGM parent fees, of £910 million to £960 million.
Management also reaffirmed its target of generating around £500 million in annual adjusted cash flow in 2028.
Near-term attention will centre on maintaining online growth through the second half, completing the initial Entain CEE divestment in the fourth quarter and progressing options for a full exit from the business.
