Entain reiterated its full-year 2026 financial guidance on Thursday after reporting a 2% increase in third-quarter group net gaming revenue (NGR), as growth in online gaming and the UK and Ireland helped offset adverse sports results and challenges in Brazil.
The sports betting and gaming group said online NGR rose 3% in the three months to September 30, compared with the same period last year, while gaming revenue increased 8%. Customer-friendly football results weighed on sports performance, which declined 3%.
Excluding Brazil, online NGR grew 5%, supported by a 7% increase in volumes. Year-to-date online NGR growth stood at 8% on the same basis.
Entain expects full-year online NGR to grow by 4% to 6% on a constant-currency basis. Excluding Brazil, it expects growth at the upper end of its 5% to 7% forecast range.
The company maintained its forecast for full-year underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding parent fees, at the lower end of the £910 million to £960 million range. Its online underlying EBITDA margin is also expected to be at the lower end of the 21% to 22% range.
“I am pleased with our Q3 performance which reflects the strength of our execution and reinforces the resilience of our globally scaled business as well as its ability to consistently deliver high-quality growth,” Entain CEO Stella David said.
David said the group’s underlying momentum across its diverse portfolio supported its decision to maintain its full-year outlook.
UK and Ireland net gaming revenue increased 8%, ahead of expectations, with online revenue rising 14%. Online gaming revenue in the region grew 17%, while sports revenue increased 3%. Online volumes rose 15%, reflecting continued momentum and market share gains.
Retail NGR in the UK and Ireland increased 3% on a like-for-like basis, with the company reporting growth across both sports and gaming.
International NGR fell 4%, including a 3% decline online and a 12% drop in retail revenue, largely reflecting challenges in Brazil. Excluding Brazil, international online NGR increased 1%.
Brazilian NGR declined 36%, which Entain attributed to disciplined marketing and player engagement amid an increasingly challenging market, ahead of an immediate online gambling ban announced on September 25.
In other international markets, online NGR in Australia rose 1%, while Italy’s total NGR declined 6%, with online revenue down 5% and retail revenue down 8%. Strong volumes in Italy were offset by favourable football results for customers, which reduced sports margins by 3.1 percentage points year-on-year.
New Zealand, Spain and Canada delivered double-digit online NGR growth.
The group also reiterated that the announced sale of an initial 20% stake in Entain CEE, as part of its phased exit from the business, remained on track to close in the fourth quarter of 2026.
According to the company, its full-year outlook assumed that Brazil’s immediate online gambling ban would remain in place for the rest of 2026.
Its 47.5%-owned joint venture BetMGM also maintained its full-year guidance, expecting net revenue of $2.9 billion to $3.1 billion and adjusted EBITDA of $300 million to $350 million, with both measures expected to land towards the lower end of their respective ranges.
Entain continued to expect the group, including its 47.5% minority stake in Entain CEE, to generate £500 million in annual adjusted cash flow in 2028, despite uncertainty over potential tax and regulatory developments.
David also urged the UK government to consider the potential consequences of further gambling tax increases.
“Both online and retail are important parts of our business and valued contributors to tax revenues and local communities. We strongly urge the UK Government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods,” she said.