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Entain ADR (GMVHY)
OTHER OTC:GMVHY
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Entain ADR
(OTC:GMVHY)
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Rating:49Neutral
Price Target:
$8.00
▼(-21.26% Downside)
Action:ReiteratedDate:03/07/26
The score is held back mainly by weak financial performance (revenue drop, net losses, and higher leverage) and a bearish technical trend. These are partly offset by positive cash generation and a generally constructive earnings outlook, though near-term regulatory/tax headwinds meaningfully constrain improvement.
Positive Factors
Improving cash generation
A clear cash-flow turnaround to positive adjusted cash flow in 2025, plus a credible target of £500m annual adjusted cash flow by 2028, strengthens the firm's ability to service debt, fund operations and invest. Durable cash generation reduces reliance on external financing and supports strategic flexibility over the medium term.
Profitable BetMGM JV
The BetMGM joint venture is delivering strong revenue and EBITDA growth and tangible cash returns to Entain, providing durable U.S. market exposure without full consolidation. Sustained JV profitability and distributions materially bolster group cash flow and ROI on earlier investments, aiding deleveraging and funding capacity over the medium term.
Diversified geographic footprint
Strong market positions across multiple regulated jurisdictions and a portfolio diversified by product reduce dependence on any single market. This structural diversification offers more predictable mid-term revenue growth, allows reallocation of marketing spend, and helps offset localized regulatory or margin shocks over the 2–6 month horizon and beyond.
Negative Factors
Materially higher leverage
The balance sheet is substantially more leveraged than in prior years, leaving the company sensitive to earnings volatility and limiting financial flexibility. Elevated leverage increases refinancing and covenant risk, constrains capacity for strategic M&A or shareholder returns, and makes recovery more dependent on sustained cash conversion.
UK gambling tax rise
A structural, sizeable tax increase in the UK—a core market—meaningfully raises the ongoing cost base and effective tax rate. This permanently reduces margins and cash available for deleveraging, raises the risk of customer migration to black‑market operators, and delays the company’s planned reduction in leverage and EPS recovery.
2025 revenue decline and net losses
A steep revenue decline and persistent net losses erode the equity base and reduce earnings cushions. This increases sensitivity to sports-margin swings, regulatory shifts and competitive promo intensity, making sustained recovery dependent on consistent top-line growth and margin restoration rather than one-off operational gains.
Entain ADR (GMVHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.99B
Dividend Yield2.55%
Average Volume (3M)193.00
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth8.03%
EPS Growth-11.05%
CountryUS
Employees19,272
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-1.19
Shares Outstanding639,603,760
10 Day Avg. Volume0
30 Day Avg. Volume193
Financial Highlights & Ratios
PEG Ratio-0.17
Price to Book (P/B)5.47
Price to Sales (P/S)0.94
P/FCF Ratio9.03
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue1.35
Enterprise Value/Gross Profit2.45
Enterprise Value/Ebitda6.47
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Entain ADR Business Overview & Revenue Model
Company DescriptionEntain PLC operates as a sports-betting and gaming company. The company provides online betting, casino, poker, and bingo services through mobile and web under the bwin; online and multi-channel betting under the Ladbrokes; street and online betting under the Coral; sports betting, casino, game, and poker under the Sportingbet; online bingo, sportsbook, casino, and poker access under the Betboo; and sports betting, poker, and casino games under the Crystalbet brands, as well as Gamebookers, a full-service sportsbook. It also offers software and technology for race book and sportsbook under the Stadium; online sports betting, casino, and gaming under the Eurobet; sports action and horse racing under the Neds; online bingo under the Gala Bingo; casino and live casino under the Gala Casino; virtual sports under the AGT brands, as well as partypoker, which provides online poker; PartyCasino that provides online casino; and Gala Spins, a gaming application. In addition, the company provides Foxy Bingo that provides online bingo; Foxy Games, which offers slot games, jackpots, and various table games; casino and live casino games under the Casino Las Vegas brand; playtech casino under the Casino King brand; Ladbrokes.be, a shop and newsagent outlet; Ladbrokes.com.au, an online betting site; online betting and gaming under the Optibet; online casino and betting under the NinjaCasino brand; gender-neutral mobile-first casino and bingo under the Laimz brand; online sports, casino, and poker under the BetMGM brand; online sports and gaming under the Borgata brand; and Danske Spil that provides online gaming. Further, it operates an online casino website for German-speaking markets under the CasinoClub brand; Gioco Digitale, a gaming site; and Cheeky Bingo, a bingo platform. Additionally, the company offers PMU that offers online poker; betting in the shop estates; and telephone betting services. Entain PLC was founded in 2004 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyEntain makes money primarily through its online sports betting and gaming operations, which generate revenue from customer wagers and gaming activities. Key revenue streams include sportsbook operations, where customers place bets on various sports events, and gaming revenue from online casino games and poker. The company also benefits from partnerships with various sports leagues and teams, enhancing its brand presence and customer engagement. Additionally, Entain utilizes advanced technology and data analytics to optimize its offerings and improve customer retention, further contributing to its earnings.
Entain ADR Key Performance Indicators (KPIs)
Any
Operating Profit by Segment
Reveals the profitability of each business segment, highlighting which areas are driving earnings and which may need strategic adjustments.
Reveals the profitability of each business segment, highlighting which areas are driving earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyEntain ADR Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and financial outperformance against material regulatory headwinds. Highlights include broad-based revenue and volume growth, EBITDA and EPS beats, a cash flow turnaround to GBP 151m, strong BetMGM profitability and distributions, margin gains driven by efficiency programs (Project Romer) and a credible plan to target GBP 500m annual adjusted cash flow by 2028. Offsetting these positives are the substantial UK gambling tax increases (which raise the group's ETR, depress 2026 margins and delay deleveraging), regulatory friction in markets such as Brazil and the Netherlands, and risks from the black market and promotional dynamics. Overall the company presented strong execution and a clear mitigation roadmap, while acknowledging significant near-term headwinds.Q4-2025 Updates
Positive Updates
Strong revenue and volume momentum
Total revenue (including 50% of BetMGM) rose to GBP 6.4bn, up 8% year‑on‑year; online NGR ex U.S. was GBP 3.9bn, up 6% y/y (would have been 7% excluding adverse Q4 sports results). Online volumes grew 7% for 2025 and 9% in Q4, with 7 consecutive quarters of online revenue growth.
EBITDA and EPS outperformance
Entain EBITDA (ex U.S.) was GBP 1.16bn, up 8% y/y; group EBITDA including BetMGM was GBP 1.244bn (up ~28% constant currency / ~25% reported). EPS more than doubled, rising to 62p.
Adjusted cash flow turnaround
Adjusted cash flow moved from an outflow in 2024 to an inflow of GBP 151m in 2025, ahead of expectations, driven by Entain EBITDA beats and higher-than-expected cash returns from BetMGM.
BetMGM inflection to profitability and cash returns
BetMGM delivered a strong year: revenues up ~33%, EBITDA up by >$460m y/y, online revenue growth ~34%, and returned $270m of cash to parents in 2025. Management expects ~ $500m adjusted EBITDA at BetMGM in 2027, underscoring a strong ROI on ~ $1bn net investment.
Margin improvement and efficiency gains
Online EBITDA margin beat guidance, up 0.4 percentage points y/y despite a 1.4pp drag from Brazil taxes (implying ~1.8pp underlying improvement). Project Romer delivered over GBP 100m annual savings and online gross profit margin improved ~1pp (c. GBP 40–60m benefit).
Improved leverage and liquidity
Look‑through leverage fell to 3.6x (from 4.3x a year earlier); reported leverage remained 3.1x. Available cash stayed strong at over GBP 900m and net debt was GBP 3.6bn with a healthy maturity profile.
Broad-based geographic and product diversification
Growth was broad-based: UK&I online +15%, double-digit growth in markets such as Spain, Canada, Greece, Georgia and New Zealand. Management highlights podium positions in 13 of its 16 largest online markets and 97% of revenue from markets expected to grow at least mid-single-digit CAGR.
Clear cash-focused outlook and targets
Guidance for 2026: online NGR growth 5–7% (constant currency) and online EBITDA margin 23–24% (after UK tax changes). Management reiterated a target to deliver at least GBP 500m of annual adjusted cash flow from 2028 and expects to mitigate over 50% of the UK tax impact from 2027 onwards.
Negative Updates
Significant UK gambling tax increase and near-term impact
UK gaming duty rose materially (management referenced an increase from 21% to 40%), creating a major headwind: online EBITDA margin is guided lower for 2026 (23–24%) and the effective tax rate (ETR) is expected to rise to 30%. Management expects the U.K. tax change to delay deleveraging by a year and materially raises the cost of operating in the U.K.
Brazil regulatory taxes and sports margin volatility
Brazil experienced adverse sports margins (down c.3 percentage points in H2), which drove H2 NGR decline and acted as a 1.4pp drag on online margins for the group, despite volumes being +13% for the year.
Netherlands/Belgium regulatory effects
Prior regulatory changes (notably in the Netherlands and Belgium) created significant prior-period headwinds (Netherlands reported ~‑30% at one point, improving to ~‑2% by Q4). Duty increases and affordability checks continue to create friction and revenue volatility in those markets.
2026 cash flow and deleveraging pressure
Although adjusted cash flow improved in 2025, guidance implies look‑through leverage will be broadly stable in 2026 (not deleveraging) because Entain EBITDA is expected to be slightly down and BetMGM cash returns in 2026 are expected to be broadly neutral after the large 2025 distribution.
Black market risk and prediction market concerns
Management warned that higher UK taxes open the door to an expanding illegal black market (operators without licenses or player protections). Prediction market activity in the U.S. also represents regulatory and participation risk and is viewed as more acute in the U.S. than in other markets.
Margin volatility from sporting results and market-specific softness
Q4 online sports win margin was down c.1.4pp, suppressing NGR (online NGR +3% in Q4 versus volumes +9%). Australia saw customer‑friendly results that suppressed NGR in H2 despite volume gains.
Higher effective tax rate weighing on earnings
Group ETR guidance of ~30% (including U.S.) is higher than 2025 as the UK tax rise shifts profit mix away from lower‑ETR jurisdictions, which will reduce EPS upside relative to pre‑tax performance.
Promotional and competitive uncertainty around marketing
2026 is a World Cup year with ~55% of marketing weighted to H1; potential for competitive promotional activity and uncertainty over how aggressively peers and the black market will advertise may pressure acquisition economics and marketing phasing.
Company Guidance
Management guided 2026 online NGR growth of 5–7% (constant currency) with online EBITDA margin of 23–24%, implying a small Entain EBITDA decline year‑on‑year but total group EBITDA (including BetMGM) broadly stable y/y; they expect to mitigate ~25% of the U.K. gaming tax impact in 2026 and >50% from 2027. BetMGM is targeting ~$500m adjusted EBITDA in 2027 (after delivering 33% revenue growth and an EBITDA uplift of >$460m in 2025) and returned $270m to parents in 2025. Cash and capital metrics: adjusted cash flow turned to an inflow of £151m in 2025 (vs an outflow in 2024) with a target of at least £500m annual adjusted cash flow from 2028, year‑end net debt £3.6bn, reported leverage 3.1x and look‑through leverage 3.6x (down from 4.3x), available cash >£900m, next material debt maturity ~20% not until 2028, and an ETR guide of 30% (including U.S.) with a deferred tax asset expected in 2026 that will boost EPS; marketing is weighted ~55% into H1 for the World Cup and the Board declared a final dividend of 9.8p (+5%), noting 2025 EPS of 62p.Entain ADR Financial Statement Overview
Summary
Overall fundamentals are pressured: a sharp 2025 revenue decline and ongoing net losses weigh heavily, and the balance sheet is materially more leveraged (debt-to-equity ~4.5x as equity contracted). Offsetting this, operating cash flow and free cash flow remain positive with a notable improvement in 2025, providing some resilience despite tighter debt coverage.Income Statement
Revenue has grown from 2020–2024 but fell sharply in 2025 (down ~40% year over year), signaling a major slowdown. Profitability is mixed: gross margin remains solid (~49% in 2025), and operating profit rebounded to positive in 2025 after 2024’s loss, but the company is still reporting sizable net losses (about -13% net margin in 2025) versus modest profits earlier in the period. Overall, the business shows some operating resilience, but the recent revenue decline and persistent net losses weigh heavily on the score.44
Neutral
Balance Sheet
Leverage has increased materially over time, with debt-to-equity rising from ~0.8x (2020–2021) to ~4.5x in 2025, driven by a large drop in equity. Returns to shareholders are deeply negative in recent years, consistent with ongoing net losses and a thinner equity base. While total assets remain sizable, the balance sheet has become meaningfully more leveraged and therefore more sensitive to earnings volatility and downturns.28
Negative
Cash Flow
Cash generation is a relative bright spot: operating cash flow and free cash flow are positive across all years shown, and free cash flow improved strongly in 2025 versus 2024. However, cash flow is not consistently strong relative to accounting losses, and operating cash flow covers only a modest portion of debt (coverage ratio ~0.26–0.54 over the period, including ~0.26 in 2025), which matters given the higher leverage. Overall, the company is producing real cash, but debt servicing capacity looks tighter after the balance-sheet deterioration.63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.14B | 5.09B | 4.77B | 4.30B | 3.83B |
| Gross Profit | 2.53B | 3.12B | 2.35B | 2.36B | 2.07B |
| EBITDA | 1.12B | 554.70M | -1.80M | 799.90M | 704.50M |
| Net Income | -652.09M | -452.70M | -928.60M | 24.20M | 249.30M |
Balance Sheet | |||||
| Total Assets | 9.38B | 10.14B | 10.85B | 8.74B | 7.25B |
| Cash, Cash Equivalents and Short-Term Investments | 553.13M | 390.60M | 400.60M | 658.50M | 487.10M |
| Total Debt | 3.99B | 3.96B | 3.63B | 3.39B | 2.58B |
| Total Liabilities | 8.05B | 8.12B | 8.06B | 5.42B | 4.08B |
| Stockholders Equity | 888.34M | 1.55B | 2.27B | 3.13B | 3.17B |
Cash Flow | |||||
| Free Cash Flow | 537.85M | 281.00M | 187.50M | 431.80M | 455.60M |
| Operating Cash Flow | 642.41M | 579.30M | 448.10M | 643.80M | 631.80M |
| Investing Cash Flow | -331.08M | -316.50M | -1.52B | -921.50M | -849.30M |
| Financing Cash Flow | -367.27M | -58.70M | 829.30M | 442.30M | -30.40M |
Entain ADR Technical Analysis
Neutral
10.16
Price Trends
8.72
Negative
9.42
Negative
10.60
Negative
Market Momentum
-0.24
Negative
44.08
Neutral
72.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMVHY, the sentiment is Neutral. The current price of 10.16 is above the 20-day moving average (MA) of 7.79, above the 50-day MA of 8.72, and below the 200-day MA of 10.60, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 44.08 is Neutral, neither overbought nor oversold. The STOCH value of 72.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GMVHY.
Entain ADR Risk Analysis
Entain ADR disclosed 12 risk factors in its most recent earnings report. Entain ADR 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 ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.90B | 55.90 | 27.50% | ― | 23.15% | ― | |
73 Outperform | $5.45B | 17.39 | 30.38% | 1.34% | 29.54% | 4389.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $364.44M | ― | 23.16% | ― | 1.79% | ― | |
51 Neutral | $1.50B | ― | -49.45% | ― | ― | ― | |
50 Neutral | $1.98B | ― | -34.58% | ― | 8.24% | -77.54% | |
49 Neutral | $4.99B | -7.45 | -57.07% | 2.55% | 8.03% | -11.05% |
* Consumer Cyclical Sector Average
GMVHY
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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.