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.
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