Entain Raises Forecasts After Strong First Half Performance

Entain, the owner of Ladbrokes and Coral, has upgraded its full-year expectations following impressive results in the first half of the year, with significant growth in the UK and Ireland. The company now anticipates online net gaming revenue to grow by around 7 per cent on a constant currency basis for 2025, revising its previous projection of a mid-single-digit increase. Entain has also raised the forecast for its earnings margin to between 25 and 26 per cent, up from 25 per cent.

For the six months to June, net gaming revenue increased by 6 per cent year-on-year, reaching £2.6 billion. Underlying earnings rose by 11 per cent to £583 million, surpassing market expectations. The UK and Irish markets saw net gaming revenue rise by 9 per cent, a notable achievement given last year’s strong comparative period marked by the mens Euros competition.

The company attributes its growth to an enhanced betting experience and a more balanced regulatory landscape, which had previously hampered customer engagement. Chief executive Stella David noted that customers are responding positively to recent improvements, leading to a marked rise in multi-bet participation and in the options available to punters. Betting activity surged during the women’s Euros competition in July, with Entain accepting more wagers on this event than any prior tournament, and recording higher bets per match than during the 2023 Women’s World Cup.

Strong interest was also observed in the Club World Cup, especially in Brazil, where activity around the tournament was double that of the 2024 Copa America. Brazilian clubs such as Botafogo, Flamengo, Fluminense and Palmeiras – the latter sponsored by Entain – made it to the last-16, with Chelsea ultimately claiming victory. Brazil’s newly regulated sports betting and online gaming market has contributed to a 21 per cent rise in Entain’s online net gaming revenue, measured in constant currency.

In contrast, Australia – Entain’s largest international market for online operations – experienced a 7 per cent decline in online net gaming revenue, weighed down by a sluggish market and customer-friendly horse racing outcomes. Chief executive Stella David remarked on the unpredictability of the market, citing Australia’s poor margins as a result of favourable results for punters.

Despite strong UK performance, there are concerns regarding a potential hike in gaming taxes under the next Labour budget. Proposals to substantially raise the remote gambling duty rate could, experts warn, push players towards unregulated markets and diminish government revenue. Entain already ranks among the UK’s top taxpayers and emphasises the need for a balanced approach to regulation and taxation to avoid fuelling the growth of black market gambling with its lack of player protections.

The company also announced that Pierre Bouchut has been confirmed as permanent non-executive chair. Stella David, who took over as interim chief executive in February, was formally appointed to the permanent role in April following her predecessor’s resignation after five months in the position.