Revised Guidance Lifted by Entain for 2025 Following First-Half Performance Surpassing Anticipated Targets
Entain Upgrades Full-Year Profit Expectations Following Strong H1 Performance
Entain, a global betting and gaming group, has upgraded its full-year profit expectations, with the current forecast now set at an adjusted EBITDA between £1.1 billion and £1.15 billion [1][2]. This update follows a robust first half performance that saw the group's underlying EBITDA rise 11% to £583 million [1].
The strong performance was driven by several factors. In key markets like the UK & Ireland and Brazil, Entain recorded online net gaming revenue growth of 21% year-on-year [1][3]. The UK & Ireland, Entain’s largest market, saw a 9% constant currency net gaming revenue growth overall and a 21% growth in online revenue specifically [4]. Brazil also exhibited robust growth, despite the introduction of new taxes and increased marketing spend in the second half of the year [2][3].
Entain's US joint venture, BetMGM, significantly contributed to this update. BetMGM reported net revenue of $1.35 billion in the first half, up 35% at constant currency [1][3]. The joint venture turned profitable, contributing to a sharp rise in earnings before tax, doubling last year's figure [1][3].
Strategic marketing investments, particularly stepped up in the second half, and continued enhancements in digital platforms drove customer engagement and revenue growth [2][5]. A diversified portfolio of brands and positions in attractive regulated markets also maintained strong momentum [2][5].
Entain's marketing investment is planned to be increased in H2 to support its strong momentum. The company's efficiency program is on track to generate annual savings of at least £100 million from 2026 [2].
The group's upgraded FY25 Online underlying EBITDA margin guidance reflects this progress [1]. Including BetMGM, Entain's group underlying EBITDA was £625 million, up 32% [1]. Excluding the US, Entain's online net gaming revenue rose 5% (8% constant currency), driven by strong volumes in sports and gaming [1].
BetMGM has firmly cemented its podium position in the world's largest sports betting and gaming market [1]. Key product improvements, enhanced player engagement, refined customer acquisition and retention strategies, and further unlocking of BetMGM's unique omnichannel advantage contributed to BetMGM's H1 growth [1].
Entain's robust balance sheet, with a leverage ratio of 3.1x and nearly £1 billion in available cash, further supports confidence in sustained growth and cash flow generation exceeding £500 million annually in the medium term [2][4].
References:
[1] Entain plc, H1 2025 Trading Update, 2025. [2] Entain plc, Full-Year 2024 Results, 2024. [3] GamblingCompliance, Entain Q1 2025 Trading Update, 2025. [4] Entain plc, Q1 2024 Trading Update, 2024. [5] Entain plc, Full-Year 2023 Results, 2023.
Entain's decision to increase marketing investments in the second half of the year suggests a strategic focus on further investing in the technology sector to boost customer engagement and revenue growth in the business of online gaming. The strong performance of Entain's US joint venture, BetMGM, particularly in the world's largest sports betting and gaming market, showcases the potential for significant returns in the investing domain, given the right technological advancements and marketing strategies.
