Entain Exceeds UK Expectations; Budget Pinpointed for Losses Reported

Entain has released its latest full-year financial results for 2025, and they appear to be making significant headway in the UK and Ireland. The published report, which came out this morning, suggests that, at first glance, the company seems to be in robust shape.

Indeed, the prominent global sports betting and gaming group, which owns Ladbrokes and Coral, and holds a 50% stake in BetMGM, appears to be adjusting to a new and challenging betting landscape.

However, there was also an underlying concern that emanated from the report, which will need to be addressed by the board.

Performing beyond expectations

On the face of it, the 2025 results were hugely promising. The group’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of £1.16 billion represented an 8% uptick compared to the previous 12 months, defying expectations.

Across the board, total group net gaming revenue (NGR), which includes its 50% share of BetMGM, surged by 7%. Among the other highlights that arose from the report were as follows:

• Online growth of 15% reported in the UK and Ireland.
• An adjusted cashflow of £151 million beat expectations, and that was down to Entain’s underlying EBITDA being stronger than originally envisaged.
• Entain expects Financial Year (FY) 2026 to have consistent online NGR growth of 5-7%.
• Expectations upgraded so the company can offset more than 50% of the increased UK tax burden in 2027.
• The company is confident of generating at least £500m in annual adjusted cashflow from 2028.

Budget puts losses into sharp focus

While there was plenty to celebrate, the impact of the November budget delivered by the Chancellor of the Exchequer, Rachel Reeves, may have tempered some of the excitement. With Remote Gaming Duty (RGD) set to rise to 40% on online casino betting from April, and further increases on duty paid on digital sports betting to come into effect in April 2027, this had a noticeable effect on Entain.

Yes, Entain recorded a group statutory loss after tax of £681m, compared to the £461m loss in 2024, and that incorporated a £488m impairment charge relating to the gambling tax hikes.

More pertinently, the UK’s Office for Budget Responsibility (OBR) has lowered its forecast for betting and gaming receipts to £3.8 billion for 2025-26, indicating the tax increases will impinge upon operators.

Business “never been in better shape”

Apart from the budget, there have been increasing concerns about the level of influence exerted by black market operators over the past few months. Entain has been vocal on the matter, and they have called on the United Kingdom Commission (UKGC) to stymie their influence.

But as far as the financial results are concerned, while there are obstacles to overcome, Entain’s CEO, Stella David, preferred to emphasise the positives. Reacting to the report, she said:

“We are continuing to drive strong underlying momentum and I’m immensely proud of our strategic and operational progress and the results it is delivering.

“Entain’s diverse and globally scaled portfolio of podium positions is more important than ever to ensure we are a long-term winner in our industry. The business has never been in better shape and is well-positioned to not only navigate the tax and regulatory challenges facing our industry, but to seize them as opportunities.

“I’m excited about the future as we evolve our strategic priorities, accelerate our performance, and maintain our focus on sustainable growth and cash generation.”