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Entain plc (GB:ENT)
LSE:ENT
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Entain plc (ENT) AI Stock Analysis

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GB:ENT

Entain plc

(LSE:ENT)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
553.00 p
▼(-0.07% Downside)
Action:Reiterated
Date:08/07/26
The score is led by solid and improving cash flow and a constructive earnings-call outlook (including BetMGM profitability progress), partially offset by ongoing profitability inconsistency and a weak technical setup with the share trading below key moving averages. Valuation support is limited by the negative P/E, though the dividend yield provides some cushioning.
Positive Factors
Free Cash Flow Strength
Entain has consistently positive free cash flow and a material FCF expansion in 2025, demonstrating durable cash generation. Strong cash conversion supports investment in product, marketing and deleveraging, funds dividends/capital return and increases financial optionality over the medium term.
Negative Factors
U.K. Gambling Tax Increase
The large U.K. gaming tax hike is a structural cost shock that reduces online EBITDA margins and shifts the group’s profitability baseline lower in 2026. It delays deleveraging, forces sustained mitigation actions and may permanently compress returns from a core regulated market absent further policy changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Entain has consistently positive free cash flow and a material FCF expansion in 2025, demonstrating durable cash generation. Strong cash conversion supports investment in product, marketing and deleveraging, funds dividends/capital return and increases financial optionality over the medium term.
Read all positive factors

Entain plc (ENT) vs. iShares MSCI United Kingdom ETF (EWC)

Entain plc Business Overview & Revenue Model

Company Description
Entain plc (ENT) is a global sports-betting and gaming group operating in the online and retail gambling sector. It owns and operates betting, casino, poker, bingo, and gaming brands across multiple regulated markets, offering products through dig...
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:Aug 13, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Mar 11, 2027
Earnings Call Sentiment Positive
The call communicated a clear net-positive operational performance: consistent online momentum, strong market-level wins (notably U.K., Australia, Spain, Canada and New Zealand), improved cash generation and concrete strategic actions (CEE divestment, GBP 100m cost savings target, CapEx discipline). However, material headwinds remain — notably the sharp U.K. tax increase (GBP 56m H1 EBITDA impact), sports margin volatility, marketing cost phasing, ongoing challenges in Brazil, and elevated net debt/leverage. Management has reiterated guidance and outlined credible mitigation and value-unlocking measures (cost savings, asset sale proceeds to reduce debt and targeted reinvestment), so while near-term risks are real, the balance of evidence points to operational resilience and a constructive medium-term trajectory.
Positive Updates
Consistent Online Momentum
Online NGR (continuing operations) up 7% with volume growth of 9%; marks ninth consecutive quarter of online growth despite tough comparatives.
Negative Updates
Significant U.K. Tax Headwind
U.K. gaming tax increase from 21% to 40% created a GBP 56m negative impact to EBITDA in H1 and contributed to reported EBITDA being down 2% year-on-year.
Read all updates
Q2-2026 Updates
Negative
Consistent Online Momentum
Online NGR (continuing operations) up 7% with volume growth of 9%; marks ninth consecutive quarter of online growth despite tough comparatives.
Read all positive updates
Company Guidance
Entain reiterated FY‑26 guidance of online NGR growth of 5–7% in constant currency and an online margin of 21–22%, and said it remains comfortable with consensus EBITDA, while reaffirming a target to deliver GBP 500m of adjusted cash flow by 2028 (including the remaining 47.5% of CEE and BetMGM contribution). Management reiterated plans to end FY26 net debt below 2025 levels (H1 net debt ~GBP 3.6bn) after completion of the Q4 20% CEE sale (initial tranche EUR 425m), noting H1 continuing metrics of group NGR +5%, online +7% (volume +9%), group EBITDA GBP 479m (including GBP 7m BetMGM parent fee), EPS ex‑CEE 20.3p, H1 adjusted cash flow GBP 43m (or GBP 77m including net cash from 67.5% CEE), interim dividend 10.3p (+5%), and leverage ~3.1x (3.3x including the DPA). The group also reiterated mitigation and efficiency targets—mitigations on track to offset c.25% of the UK tax step‑up this year and GBP 100m of net annualized run‑rate savings by end‑2027 (targeted to offset at least 50% of the UK tax impact).

Entain plc Financial Statement Overview

Summary
Cash generation is the main strength, with improved operating cash flow and sharply higher free cash flow in 2025 alongside consistently positive FCF over the period shown. However, the income statement remains pressured by recurring net losses and volatile margins despite steady revenue growth. Balance-sheet risk looks improved due to the sharp reduction in debt in 2025, but the declining equity base and recent negative returns temper the improvement.
Income Statement
46
Neutral
Balance Sheet
50
Neutral
Cash Flow
68
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.18B5.26B5.09B4.77B4.30B3.83B
Gross Profit2.52B2.59B3.12B2.35B2.36B2.07B
EBITDA1.38B1.15B554.70M-1.80M741.00M837.60M
Net Income-578.60M-666.70M-452.70M-928.60M24.20M249.30M
Balance Sheet
Total Assets9.12B9.40B10.14B10.85B8.74B7.25B
Cash, Cash Equivalents and Short-Term Investments453.60M554.10M390.60M400.60M658.50M487.10M
Total Debt3.98B3.99B3.96B3.63B3.39B2.58B
Total Liabilities7.91B8.07B8.12B8.06B5.42B4.08B
Stockholders Equity800.30M889.90M1.55B2.27B3.13B3.17B
Cash Flow
Free Cash Flow646.00M549.90M281.00M187.50M431.80M455.60M
Operating Cash Flow723.10M656.80M579.30M448.10M643.80M631.80M
Investing Cash Flow-298.80M-338.50M-316.50M-1.52B-921.50M-849.30M
Financing Cash Flow-371.60M-375.50M-58.70M829.30M442.30M-30.40M

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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£82.81M15.2215.38%10.22%-32.00%
64
Neutral
£493.72M14.429.03%3.13%4.98%-32.67%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
£3.57B-5.36-57.07%3.54%0.26%-13.90%
54
Neutral
£1.12B-7.8599.57%
51
Neutral
£207.49M-0.38125.82%0.07%-388.74%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ENT
Entain plc
557.20
-300.59
-35.04%
GB:GMR
Gaming Realms
30.60
-18.90
-38.18%
GB:RNK
Rank Group plc
105.40
-29.90
-22.10%
GB:PTEC
Playtech
382.40
-38.10
-9.06%
GB:EVOK
888 Holdings
46.25
-13.75
-22.92%

Entain plc Corporate Events

Business Operations and StrategyFinancial Disclosures
BetMGM posts modest Q2 growth and trims expectations to lower end of 2026 guidance
Neutral
Jul 28, 2026
BetMGM, the North American sports betting and iGaming venture jointly owned by Entain and MGM Resorts, reported second-quarter net revenue of $711 million, up 3% year on year, driven by 8% growth in iGaming while online sports revenue was flat. Ad...
Business Operations and StrategyExecutive/Board Changes
Entain Announces Board Change as Non-Executive Director Rahul Welde Retires
Neutral
Jul 27, 2026
Entain plc has announced that Non-Executive Director Rahul Welde will step down and retire from the board effective 31 July 2026, with Chair Pierre Bouchut and Welde both highlighting his contribution and the company’s strong positioning. Fo...
Business Operations and StrategyFinancial Disclosures
Entain and MGM’s BetMGM set Q2 update ahead of earnings season
Neutral
Jul 14, 2026
BetMGM, the North American sports betting and iGaming joint venture between Entain and MGM Resorts, will release its business update for the second quarter of 2026 on 28 July. Management will host an audio webcast and investor QA the same day, giv...
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...
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.Date of analysis: Aug 07, 2026