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Entain plc
(LSE:ENT)
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Rating:56Neutral
Price Target:
423.00 p
▼(-21.67% Downside)
Action:Reiterated
Date:08/17/26
The score is primarily supported by strong and improving free cash flow and a constructive earnings-call outlook with reiterated guidance, cost actions, and planned deleveraging. Offsetting these positives are weak and inconsistent profitability (including recent net losses), still-elevated leverage, and only neutral technical momentum with the stock below its 200-day moving average.
Positive Factors
Online growth and margin guidance
Sustained online growth across multiple quarters indicates durable customer engagement and platform relevance, while the reiterated margin target provides a framework for disciplined profitability. Continued digital expansion can support cross-selling and improve operating leverage over the medium term.
Negative Factors
Persistent earnings weakness
Recurring net losses and unstable margins weaken the quality and predictability of earnings despite positive EBIT and revenue resilience. If this pattern persists, it can constrain reinvestment, reduce the reliability of shareholder returns and make the business more sensitive to operating setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Online growth and margin guidance
Sustained online growth across multiple quarters indicates durable customer engagement and platform relevance, while the reiterated margin target provides a framework for disciplined profitability. Continued digital expansion can support cross-selling and improve operating leverage over the medium term.
Read all positive factors
Entain plc (ENT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.63B
Dividend Yield4.86%
Average Volume (3M)5.03M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth0.26%
EPS Growth-13.90%
CountryUK
Employees29,832
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.91
Shares Outstanding639,990,700
10 Day Avg. Volume7,305,002
30 Day Avg. Volume5,029,530
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
£984.55Price Target Upside82.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)0.54
Revenue Forecast (FY)£5.06B
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 primarily makes money by earning gross gaming revenue (GGR)—the net amount retained after paying out customer winnings—across its betting and gaming products, delivered through both online platforms and, where applicable, retail betting sho...
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
Positive
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
Income Statement
46
Neutral
Balance Sheet
50
Neutral
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.18B | 5.26B | 5.09B | 4.77B | 4.30B | 3.83B |
| Gross Profit | 2.52B | 2.59B | 3.12B | 2.35B | 2.36B | 2.07B |
| EBITDA | 1.38B | 1.15B | 554.70M | -1.80M | 741.00M | 837.60M |
| Net Income | -578.60M | -666.70M | -452.70M | -928.60M | 24.20M | 249.30M |
Balance Sheet | ||||||
| Total Assets | 9.12B | 9.40B | 10.14B | 10.85B | 8.74B | 7.25B |
| Cash, Cash Equivalents and Short-Term Investments | 453.60M | 554.10M | 390.60M | 400.60M | 658.50M | 487.10M |
| Total Debt | 3.98B | 3.99B | 3.96B | 3.63B | 3.39B | 2.58B |
| Total Liabilities | 7.91B | 8.07B | 8.12B | 8.06B | 5.42B | 4.08B |
| Stockholders Equity | 800.30M | 889.90M | 1.55B | 2.27B | 3.13B | 3.17B |
Cash Flow | ||||||
| Free Cash Flow | 646.00M | 549.90M | 281.00M | 187.50M | 431.80M | 455.60M |
| Operating Cash Flow | 723.10M | 656.80M | 579.30M | 448.10M | 643.80M | 631.80M |
| Investing Cash Flow | -298.80M | -338.50M | -316.50M | -1.52B | -921.50M | -849.30M |
| Financing Cash Flow | -371.60M | -375.50M | -58.70M | 829.30M | 442.30M | -30.40M |
Entain plc Technical Analysis
Negative
540.00
Price Trends
509.45
Negative
527.10
Negative
562.70
Negative
Market Momentum
-28.16
Positive
18.95
Positive
3.69
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ENT, the sentiment is Negative. The current price of 540 is above the 20-day moving average (MA) of 469.77, above the 50-day MA of 509.45, and below the 200-day MA of 562.70, indicating a bearish trend. The MACD of -28.16 indicates Positive momentum. The RSI at 18.95 is Positive, neither overbought nor oversold. The STOCH value of 3.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | £83.41M | 15.91 | 15.29% | ― | >-0.01% | -27.70% | |
63 Neutral | £1.09B | 220.19 | -1.45% | 151.49% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | £348.04M | 11.72 | 7.83% | 4.76% | 4.98% | -32.77% | |
56 Neutral | £2.63B | -4.56 | -68.47% | 4.86% | 0.26% | -13.90% | |
51 Neutral | £193.58M | -0.35 | 76.91% | 0.04% | 0.07% | -388.74% |
* Consumer Cyclical Sector Average
GB:ENT
Entain plc
413.40
-427.13
-50.82%
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Entain plc Corporate Events
Regulatory Filings and Compliance
Entain CFO boosts stake with fresh share purchase
Positive
Oct 2, 2026
Entain plc has disclosed that Chief Financial Officer Michael Snape has increased his personal stake in the company through a purchase of 24,013 ordinary shares on 1 October 2026. The transaction, executed on the London Stock Exchange at a price o...
Business Operations and StrategyRegulatory Filings and Compliance
Entain Updates Share Capital After Employee Share Awards Vest
Neutral
Oct 1, 2026
Entain plc has issued 43,605 new ordinary shares to satisfy the vesting of employee awards under its UK and International Sharesave plans and its 2017 Long Term Incentive Plan. The newly issued shares, which are fungible with existing stock and ad...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Entain Holds 2026 Profit Guidance Despite Brazil’s Sudden Online Betting Ban
Negative
Sep 28, 2026
Entain plc, a global sports betting and gaming operator with a broad stable of online and retail brands and a 50/50 U.S. joint venture in BetMGM, derives revenue from a diversified geographic footprint focused on regulated markets. The group devel...
Regulatory Filings and Compliance
Entain CFO Michael Snape Boosts Shareholding with Major Purchase
Positive
Sep 21, 2026
Entain plc disclosed that its Chief Financial Officer, Michael Snape, has significantly increased his personal stake in the company. Snape purchased 51,815 ordinary shares at 482.47 pence each on 18 September 2026, lifting his total holding to 64,...
Business Operations and StrategyRegulatory Filings and Compliance
Entain Updates Share Capital After LTIP Share Issuance
Neutral
Sep 1, 2026
Entain plc has issued 38,906 new ordinary shares to satisfy the vesting of awards under its 2017 Long Term Incentive Plan, with these shares admitted to trading on the London Stock Exchange under existing block admissions. Following this issuance,...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Entain to Appoint Deloitte as New Auditor from 2027
Neutral
Aug 13, 2026
Entain plc has selected Deloitte LLP to become its external auditor for the financial year ending 31 December 2027, following a comprehensive and competitive audit tender overseen by its Audit Risk Committee. The appointment, which complies with ...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Entain Beats H1 Revenue Forecasts and Starts Exit From CEE Unit
Positive
Aug 13, 2026
Entain reported first-half 2026 net gaming revenue up 5% on a constant-currency basis, beating expectations as both online and retail businesses outperformed, particularly in the U.K. and Ireland and Australia. Online NGR rose 7%, volumes grew str...
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...
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.