Entain Plc

On a continuing basis, group NGR rose 5% in H1 2026, with online up 7% and retail up 1%. Group EBITDA was GBP 479 million, reported down 2% year over year, and EPS excluding CEE was 20.3p. Adjusted cash flow was GBP 43 million for H1 on a continuing basis, or GBP 77 million including the net cash flow from the current 67.5% share of CEE; net debt was GBP 3.6 billion and leverage was 3.1x, or 3.3x including the DPA. Management reiterated FY26 online NGR growth of 5% to 7% constant currency, online margin guidance of 21% to 22%, comfort with EBITDA consensus, and said net debt should end the year below 2025 levels. The interim dividend was 10.3p per share, up 5%.

Stella David framed the quarter as evidence that Entain is becoming a stronger, sharper, and more connected business. She highlighted broad-based momentum in the UK, Spain, Canada, Australia and New Zealand, plus the World Cup as a meaningful customer-acquisition event with first-time deposits doubling versus the prior World Cup. Her tone was confident but measured: she repeatedly emphasized disciplined investment, better use of data and AI, and the importance of balancing growth with profitability amid tax and regulatory headwinds.

Michael Snape focused on the financial bridge from growth to cash. He pointed to GBP 479 million of EBITDA, a GBP 56 million hit from the UK tax increase, a GBP 16 million FX tailwind, GBP 22 million of online contribution, and GBP 7 million from retail, while noting higher marketing spend and GBP 18 million of other market tax increases. He said adjusted cash flow improved, CapEx guidance was tightened because lower spend reflects a more returns-led approach, and the group plans GBP 100 million of net annualized run-rate savings by end-2027, helped by the removal of 500 roles. He also said the CEE sale proceeds will go fully to debt, with the remaining CEE exit expected to support debt reduction and potentially shareholder returns later.

Analysts focused on how Entain still reaches the GBP 500 million adjusted cash flow target by 2028 after the CEE exit and a softer BetMGM outlook, why FY26 EBITDA guidance was only reiterated after an ahead-of-expectations H1, and whether Brazil and other markets could sustain online growth. Management said the CEE disposal is broadly cash neutral once reduced interest is considered, and that the cash target is supported by growth, cost optimization, and CapEx discipline. On Brazil, management stressed they will not chase growth at any cost because the regulatory and competitive environment remains unpredictable. On portfolio strategy and leverage, they said they are open to further value-creating actions, will use CEE sale proceeds to reduce debt, and want reported leverage below 3x over time.