Entain Beats H1 Expectations As UK Tax Hike Bites Into Profit
Entain beat expectations in the first half of 2026, with group net gaming revenue up 5% on a constant-currency basis, but a steep rise in UK gambling taxes weighed on profit.
The FTSE 100 operator, whose brands include ladbrokes, Coral and bwin, published interim results for the six months to June 30, 2026 on August 13, 2026.
The Headline Numbers
Group underlying earnings before interest, tax, depreciation and amortisation came in at £479 million, down 2% year on year but ahead of expectations.
Online underlying EBITDA fell 5% to £395m while retail rose 6% to £142m. The group reported a loss after tax of £11.4m, an improvement of £74m on the same period last year, and lifted its interim dividend 5% to 10.3p per share.
Net debt stood at £3,599m, with leverage flat at 3.1 times.
The Tax Man Delivers A Reality Check
The decline in the online margin reflected the UK remote gambling tax rate increase from 21% to 40%, which took effect on April 1, 2026 and was only partially offset by revenue growth.
Adjusted diluted earnings per share fell 19% to 20.3p, hit by lower underlying EBITDA, reduced income from the BetMGM joint venture and a higher effective tax rate.
Chief executive Stella David said the group was making strong progress "particularly the strong growth in the UK, our largest market, as we adapt to the significant and disappointing remote gambling tax increases."
She added that Entain remained "well positioned to capture potential opportunities as the wider market adjusts to the higher tax regime."
UK Growth Leads The Way
UK and Ireland net gaming revenue rose 8% on a constant-currency basis, with online up 13% and retail up 2%, both ahead of expectations as the business gained market share.
Entain credited a successful men's World Cup campaign on betting sites, reporting first-time depositors at double the level seen during the 2022 tournament.
Australia online grew 13%, with Canada up 11%, New Zealand up 21% and Spain up 28%. Brazil revenue fell 25% in an intensely competitive market, though player metrics improved through the half.
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Exiting Central And Eastern Europe
Entain is pursuing a phased exit of its Central and Eastern European business, Entain CEE, with an initial 20% divestment agreed at €425m.
That implies a total enterprise value of about €2.1 billion, or roughly 10 times EBITDA, with completion expected in early in the fourth quarter of 2026.
The company said future proceeds from a full exit would be used to cut group leverage below three times, with excess capital returned to shareholders, as set out in its interim results.
