Entain Raises FY 2025 Guidance Following Strong H1 Performance

Strong First Half of the Year for Entain

Sports betting and gaming leader Entain has released its interim report for the first half of the year, revealing results that surpassed company expectations. Following this strong performance, Entain has revised its financial outlook, raising its forecasts for the full year 2025.

Impressive Revenue Growth and Market Performance

During the first six months, Entain’s total net gaming revenue, which includes its 50% stake in BetMGM, rose by 7% overall (10% on a constant currency basis). Entain’s core businesses grew by 3% (6% cc), while BetMGM markedly increased revenue by 35%, both exceeding initial projections.

The second quarter was particularly notable, especially when considering the tough comparisons from the same period last year due to the Euro soccer tournament.

Excluding the United States, Entain’s online net gaming revenue climbed 5% (8% cc), driven by robust betting and gaming activity. The company saw strong 21% constant currency growth in both its longstanding UK & Ireland market and emerging Brazilian market, demonstrating its ability to expand in diverse regions.

Improved Profitability and Updated Financial Targets

The favorable revenue mix resulted in higher online EBITDA margins, surpassing previous expectations. Consequently, Entain raised its EBITDA margin guidance to between 25% and 26%. For context, group EBITDA for the half was GBP 583 million, an 11% increase year-over-year. This includes online EBITDA of GBP 502 million (up 13%) and steady retail EBITDA of GBP 141 million. When factoring in BetMGM’s contribution, total EBITDA reached GBP 625 million, a 32% rise compared to the previous year.

BetMGM’s performance supports Entain’s goal for the brand to achieve EBITDA exceeding $500 million in 2025.

For the full fiscal year 2025, Entain now anticipates net gaming revenue growth of approximately 7%, with group EBITDA expected to fall between GBP 1.1 billion and GBP 1.15 billion. The company also projects generating an adjusted annual cash flow of around GBP 0.5 billion in the medium term.

Leadership Confidence and Strategic Appointments

Entain’s CEO, Stella David, expressed satisfaction with the report’s results and highlighted the progress made amid a challenging regulatory and financial environment. She emphasized that these outcomes strengthen their confidence in sustaining growth and generating substantial cash flow going forward.

“Our business is getting stronger, fitter and faster, with these results reinforcing our confidence in driving sustainable underlying growth and generating more than £0.5bn of cash annually in the medium term.”

Stella David, CEO, Entain

David took on the CEO role in April following the departure of Gavin Isaacs. The company also confirmed Pierre Bouchut’s appointment from interim to permanent non-executive chairperson, underscoring Entain’s dedication to stable and experienced leadership.

Additionally, Entain declared an interim dividend of 9.8p per share, marking a 5% increase compared to the previous year.