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Entain plc
(LSE:ENT)
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Rating:55Neutral
Price Target:
534.00 p
▼(-15.61% Downside)
Action:Reiterated
Date:03/24/26
The score is driven primarily by solid and improving cash flow plus improved leverage (financial performance), supported by generally positive earnings-call guidance and execution momentum (including BetMGM). These positives are tempered by inconsistent profitability and a weak technical setup (negative MACD and below key longer-term moving averages), while valuation support is mixed due to a negative P/E despite a ~3.6% dividend yield.
Positive Factors
Improved free cash flow generation
Entain's materially improved operating and free cash flow in 2025 demonstrates durable cash conversion capability. Reliable FCF supports sustained deleveraging, dividend policy and reinvestment in product and marketing, providing flexible funding to hit multi-year cash targets and withstand regulatory shocks.
Negative Factors
Material UK gambling tax increase
A structural rise in U.K. gaming duty is a lasting regulatory shock that depresses margins and pauses deleveraging for at least a year. Higher taxes reduce cash flow headroom, force margin remediation measures, and raise the risk of customer migration to unregulated operators, constraining long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow generation
Entain's materially improved operating and free cash flow in 2025 demonstrates durable cash conversion capability. Reliable FCF supports sustained deleveraging, dividend policy and reinvestment in product and marketing, providing flexible funding to hit multi-year cash targets and withstand regulatory shocks.
Read all positive factors
Entain plc (ENT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.57B
Dividend Yield2.24%
Average Volume (3M)1.47M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth3.34%
EPS Growth-47.20%
CountryUK
Employees29,832
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-1.04
Shares Outstanding639,908,200
10 Day Avg. Volume1,926,593
30 Day Avg. Volume1,471,241
Financial Highlights & Ratios
PEG Ratio-0.16
Price to Book (P/B)5.51
Price to Sales (P/S)0.93
P/FCF Ratio8.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£935.67Price Target Upside47.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)0.6
Revenue Forecast (FY)£5.57B
Entain plc Business Overview & Revenue Model
Company Description
Entain Plc operates as a sports-betting and gaming company in the United Kingdom, Ireland, Italy, rest of Europe, Australia, New Zealand, and internationally. It provides online and multi-channel betting under the Ladbrokes name; street and online...
How the Company Makes Money
Entain makes money primarily by taking a share of customer wagering and gaming activity across its online and retail products. In sports betting, revenue is generated from the difference between stakes taken and winnings paid out (often referred t...
Entain plc Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance in 2025 with broad-based organic growth, a clear BetMGM profitability inflection, meaningful margin and cash flow improvement, and a credible multi-year plan (including cost/AI initiatives) targeting at least GBP 500m adjusted cash flow by 2028. The principal near-term headwind is the sharp U.K. tax increase and related regulatory/black-market risks, which depress margins in 2026 and delay a year of deleveraging; management has detailed mitigation workstreams and expects to offset over 50% of the U.K. tax impact from 2027. Overall, the positive operational momentum, strong BetMGM contribution and improved cash generation outweigh the significant but manageable regulatory headwinds.Positive Updates
Strong Group EBITDA Performance
Entain reported ex-U.S. EBITDA up 8% year-on-year to GBP 1.16 billion and total group EBITDA (including 50% of BetMGM) up 28% year-on-year to GBP 1.244 billion, driven by organic growth and efficiency improvements.
Negative Updates
Significant U.K. Gambling Tax Increase
The U.K. government's dramatic tax increases (gaming duty rising materially, cited example from 21% to 40% on gaming) will materially increase costs, reduce online EBITDA margin in 2026 and delay deleveraging (look-through leverage broadly stable in 2026).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Group EBITDA Performance
Entain reported ex-U.S. EBITDA up 8% year-on-year to GBP 1.16 billion and total group EBITDA (including 50% of BetMGM) up 28% year-on-year to GBP 1.244 billion, driven by organic growth and efficiency improvements.
Read all positive updates
Company Guidance
Management guided 2026 online NGR growth of 5–7% (constant currency) with an online EBITDA margin of 23–24% (reflecting mitigation of ~25% of the U.K. gaming tax impact in 2026 and management’s upgraded expectation to mitigate >50% from 2027), which implies a small YoY decline in Entain EBITDA but total group EBITDA (including BetMGM) broadly stable year‑on‑year; BetMGM is on track for ~$500m adjusted EBITDA in 2027 (it returned $270m to parents in 2025), Entain targets at least GBP 500m of annual adjusted cash flow from 2028 (adjusted cash flow was GBP 151m in 2025), look‑through leverage was 3.6x at year‑end (reported 3.1x; net debt GBP 3.6bn; available cash >GBP 900m), the new blended ETR guidance is 30% (including the U.S.) with a deferred tax asset recognition expected in 2026 to boost EPS, and marketing is phased for 2026 with ~55% of spend in H1 for the World Cup.Entain plc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
50
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.26B | 5.09B | 4.77B | 4.30B | 3.83B |
| Gross Profit | 2.59B | 3.12B | 2.35B | 2.36B | 2.07B |
| EBITDA | 1.15B | 554.70M | -1.80M | 741.00M | 837.60M |
| Net Income | -666.70M | -452.70M | -928.60M | 24.20M | 249.30M |
Balance Sheet | |||||
| Total Assets | 9.40B | 10.14B | 10.85B | 8.74B | 7.25B |
| Cash, Cash Equivalents and Short-Term Investments | 554.10M | 390.60M | 400.60M | 658.50M | 487.10M |
| Total Debt | 3.99B | 3.96B | 3.63B | 3.39B | 2.58B |
| Total Liabilities | 8.07B | 8.12B | 8.06B | 5.42B | 4.08B |
| Stockholders Equity | 889.90M | 1.55B | 2.27B | 3.13B | 3.17B |
Cash Flow | |||||
| Free Cash Flow | 549.90M | 281.00M | 187.50M | 431.80M | 455.60M |
| Operating Cash Flow | 656.80M | 579.30M | 448.10M | 643.80M | 631.80M |
| Investing Cash Flow | -338.50M | -316.50M | -1.52B | -921.50M | -849.30M |
| Financing Cash Flow | -375.50M | -58.70M | 829.30M | 442.30M | -30.40M |
Entain plc Technical Analysis
Positive
632.80
Price Trends
551.63
Positive
559.71
Negative
643.75
Negative
Market Momentum
-4.82
Negative
50.78
Neutral
66.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENT, the sentiment is Positive. The current price of 632.8 is above the 20-day moving average (MA) of 550.75, above the 50-day MA of 551.63, and below the 200-day MA of 643.75, indicating a neutral trend. The MACD of -4.82 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 66.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ENT.
Entain plc Risk Analysis
Entain plc disclosed 12 risk factors in its most recent earnings report. Entain plc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Entain plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £83.04M | 14.88 | 15.38% | ― | 10.22% | -32.00% | |
65 Neutral | £1.16B | -8.06 | 99.57% | 163.36% | ― | ― | |
64 Neutral | £442.67M | 13.21 | 9.03% | 2.58% | 5.13% | 6.55% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £3.57B | -5.33 | -57.07% | 2.24% | 3.34% | -47.20% | |
51 Neutral | £209.73M | -0.39 | 125.82% | ― | 1.56% | -185.45% |
* Consumer Cyclical Sector Average
GB:ENT
Entain plc
554.40
-362.12
-39.51%
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Entain plc Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Entain Updates Share Capital After Small Sharesave Issuance
Neutral
Jul 1, 2026
Entain plc has issued 238 new ordinary shares of €0.01 each to satisfy vesting under its UK and International Sharesave Plans, with the shares admitted to trading on the London Stock Exchange under existing block admissions. Following this m...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Entain Begins Exit from CEE Unit with €425m Stake Sale to EMMA
Positive
Jun 25, 2026
Entain has agreed to sell a 20% stake in its Central and Eastern European business, Entain CEE, to joint venture partner EMMA Capital for a total cash consideration of about €425 million. The deal, which values Entain CEE at €2.1 billi...
Business Operations and StrategyExecutive/Board Changes
Entain reshapes board committees as director Amanda Brown steps down
Neutral
Jun 23, 2026
Entain has announced that non-executive director Amanda Brown will step down from its board on 30 June 2026, prompting a reshuffle of key governance roles. Chair Pierre Bouchut and Brown exchanged formal acknowledgements of her contribution, under...
Business Operations and StrategyExecutive/Board Changes
Entain Bolsters Board Committees With New Governance Appointments
Positive
Jun 15, 2026
Entain plc, the London-listed global sports betting and gaming operator, runs a wide portfolio of online and retail betting and gaming brands, including Ladbrokes, Coral, bwin and PartyCasino, and provides technology for its BetMGM joint venture i...
Regulatory Filings and Compliance
Entain Confirms Total Voting Rights at Nearly 640 Million Shares
Neutral
Jun 1, 2026
Entain has confirmed that as of 31 May 2026 it has 639,907,947 ordinary shares in issue, each carrying one vote, establishing the company’s current total voting rights. This figure provides investors with the denominator needed to assess and...
Other
Entain Issues Small Tranche of Shares Under Employee Savings Plans
Neutral
Jun 1, 2026
Entain plc has issued 95 new ordinary shares of €0.01 each to satisfy the vesting of awards under its UK and International Sharesave Plans, with the shares admitted to trading on the London Stock Exchange under existing block admissions. The...
Business Operations and StrategyExecutive/Board Changes
Entain adds gaming veteran Sheila Bangalore to board as independent director
Positive
May 28, 2026
Entain plc has strengthened its board by appointing Sheila Bangalore as an Independent Non-Executive Director with immediate effect, adding over two decades of experience in global gaming, hospitality and technology to its governance structure. Ba...
Business Operations and StrategyExecutive/Board Changes
Entain director Ricky Sandler to exit board as Eminence Capital unwinds stake
Positive
May 5, 2026
Entain plc, the FTSE 100 global sports betting and gaming operator behind brands such as Ladbrokes, Coral, bwin and PartyCasino, runs both online and retail platforms and supplies proprietary technology to its own businesses and external B2B clien...
Executive/Board Changes
Entain Grants Performance-Tied LTIP Awards to New CEO and CFO
Positive
Apr 30, 2026
Entain has granted significant long-term incentive plan awards in the form of conditional share grants to newly installed chief executive Stella David and chief financial officer Michael Snape. David has received 725,967 shares and Snape 413,913 s...
Business Operations and StrategyStock BuybackFinancial DisclosuresShareholder Meetings
Entain investors back all resolutions at 2026 AGM, reinforcing board mandate
Positive
Apr 29, 2026
Entain plc said that shareholders at its 2026 annual general meeting approved all resolutions, including the receipt of 2025 accounts, the directors’ remuneration report and policy, and the reappointment of KPMG as auditor. Investors also ba...
Business Operations and StrategyFinancial Disclosures
BetMGM Delivers Profitable Q1 Growth as It Trims 2026 Revenue Outlook
Positive
Apr 14, 2026
BetMGM reported first‑quarter 2026 net revenue of $696 million, up 6% year on year, driven by 9% growth in iGaming and 4% growth in online sports, while adjusted EBITDA rose 11% to $25 million despite a deliberate pullback in player acquisit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.