Entain Demonstrates Strong Growth in FY2025 with BetMGM Turning Profitable

Entain’s Financial Highlights for Fiscal Year 2025

Entain, a leading global betting and gaming company based in London, reported exceptional growth in fiscal year 2025. This success was largely driven by its expanding online presence and the notable profitability of its American venture, BetMGM. The company experienced increased earnings and healthier cash flow, marking its first full year of profitability in the U.S. market after years of considerable investment, signaling a robust shift towards sustained financial returns.

Encouraging Key Performance Indicators

The consolidated net gaming revenue for Entain’s group, including its U.S. operations, reached £6.4 billion (approximately $8.51 billion), reflecting a 7% year-over-year rise. When excluding the U.S., revenue stood at £5.3 billion ($7.05 billion), demonstrating steady growth across the diverse markets it serves. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 25% to £1.24 billion ($1.65 billion), while adjusted diluted earnings per share more than doubled to 61.8p (around $0.80).

Significant improvements were also seen in cash flow, with adjusted cash flow increasing to £151 million ($201 million), a remarkable recovery from the £22 million ($29.3 million) cash outflow registered in the previous year. This £173 million ($230.26 million) positive swing illustrates Entain’s enhanced capability to convert profits into cash while still investing in product innovation and market expansion. Additionally, the company improved its leverage ratio to 3.6 times, strengthening its financial health.

The improvement in operational efficiency and better profit margins within its digital segment were key factors contributing to these strong financial outcomes. Following these results, investor confidence surged, and Entain’s stock price jumped by over 6%, underscoring growing optimism about the company’s growth strategy bearing fruit.

Confidence in Future Growth

Entain’s online operations continue to be the cornerstone of its business, showing steady growth over the past seven quarters. The United Kingdom and Ireland markets were particularly strong, delivering 15% annual growth and making up nearly 25% of the company’s online revenue. While international markets presented a mixed picture, gains in Spain and other European countries balanced out a slight decrease in Australia.

The standout achievement for the year was in the U.S. market where BetMGM recorded an adjusted EBITDA of $220 million, marking its first profitable year after extensive investments in technology, marketing, and expanding its market share. Management is optimistic that BetMGM’s earnings will continue to grow, projecting adjusted EBITDA between $300 million and $350 million for 2026.

“The business has never been in better shape and is well-positioned not only to navigate the tax and regulatory challenges facing our industry but to turn them into opportunities.”

Stella David, Entain CEO

Looking forward to 2026, Entain anticipates online revenue growth of 5% to 7% in constant currency terms, with margins expected to remain stable. The company plans to maintain its focus on disciplined expansion, operational efficiency, and delivering stronger cash returns to shareholders. Instead of pursuing significant acquisitions, Entain aims to consolidate its existing market positions and enhance the quality of its products.