REG - Entain PLC - Final Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260305:nRSE4040Va&default-theme=true
RNS Number : 4040V Entain PLC 05 March 2026
5 March 2026
Entain plc
("Entain" or the "Group")
Strong FY25 performance with Underlying EBITDA ahead of expectations
Reiterate confidence in generating at least £500m adjusted cashflow from
2028
Entain plc (LSE: ENT), the global sports betting and gaming group, today
reports its results for the year ended 31 December 2025 ("FY25").
• Total Group Net Gaming Revenue ("NGR(1)"), including 50% share of
BetMGM(2), up +7%, +8%cc(3), with Entain up +3%, +4%cc(3) and BetMGM up
+33%cc(3)
- FY25 Online NGR(1) (exc. US) up +5%, +6%cc(3), reflecting strong volumes(12)
and underlying momentum
• FY25 Online Underlying EBITDA(4) margin expanded to 25.7%, benefitting
from scaled growth and improved operational execution
• FY25 Group Underlying EBITDA(4) of £1,160m, up +8%cc(3) YoY, ahead of
guidance(8)
- Total Group Underlying EBITDA(4) including 50% share of BetMGM(2) at
£1,244m, up 28%cc(3) vs prior year
• BetMGM's FY25 inflection to profitability supported its distribution of
cash to parents and reinforces its pathway to delivering $500m of Adjusted
EBITDA(6) in 2027
• Adjusted cashflow(7) of £151m, ahead of expectations, with both BetMGM
cash distribution and Entain Underlying EBITDA(4) being stronger than
anticipated
• Group statutory loss after tax of £681m including an impairment charge
related to UK Gambling tax increases
• Outlook: Entain expects FY26 Online NGR(1) (exc. US) growth of 5-7% on a
constant currency basis(3), and remains comfortable with market
expectations(8) for FY26 Group Underlying EBITDA
- Upgrading expectations(9) to now offset over 50% of the incremental UK tax
burden from 2027
- Reaffirming confidence in generating at least £500m of annual adjusted
cashflow(7) from 2028
Stella David, CEO of Entain, commented:
"2025 has been a successful year for Entain. We are continuing to drive strong
underlying momentum and I am immensely proud of our strategic and
operational progress and the results it is delivering.
Entain's diverse and globally scaled portfolio of podium positions, is more
important than ever to ensure we are a long-term winner in our industry. The
business has never been in better shape and is well positioned to not only
navigate the tax and regulatory challenges facing our industry, but to seize
them as opportunities.
I am excited about the future as we evolve our strategic priorities,
accelerate our performance, and maintain our focus on sustainable growth and
cash generation. I am confident in Entain's ability to deliver at least £500m
of annual adjusted cashflow(7) from 2028."
FY25 Trading performance:
Net Gaming Revenue(1) (NGR)
H1 H2 FY
YoY Rpt(11) YoY cc(3) YoY Rpt(11) YoY cc(3) YoY Rpt(11) YoY cc(3)
UK & Ireland 9% 9% 4% 4% 6% 6%
International (2%) 3% 2% 2% 0% 2%
CEE 5% 7% 8% 4% 7% 5%
Group (exc US) 3% 6% 4% 3% 3% 4%
Online 5% 8% 5% 4% 5% 6%
Retail (1%) 0% 0% (1%) (1%) (1%)
BetMGM 33% 35% 27% 31% 30% 33%
Total Group 7% 10% 7% 7% 7% 8%
inc. 50% of BetMGM(2)
FY25 performance highlights
• Total Group NGR(1) inc. 50% share of BetMGM(2), up +7%, +8%cc(3), with
Group NGR(1) (exc. US) up +3%, +4%cc(3)
- Online NGR(1) (exc. US) up +5%, +6%cc(3), reflecting strong volume(12)
growth despite lapping increasingly tough prior year comparators and
experiencing customer friendly sports results in Q4
◦ Q4 Online NGR(1) up +3%cc(3), with volume(12) growth (+9%cc(3)) offset
by year-on-year sports margin drag (-1.4pp)
- Retail NGR(1) (exc. US) down -1%, -1%cc(3)
• UK & Ireland NGR(1) +6%cc(3), ahead of expectations
- UK&I Online +15%cc(3), with continued double-digit volume(12) growth
supporting further market share gains
- UK&I Retail -2%cc(3), flat cc(3) on a like-for-like(13) basis with
market share gains and stable volumes(12)
• International NGR(1) up +2%cc(3) (Online +2%cc(3), Retail +3%cc(3))
- Brazil -1%cc(3) with stable market share and strong volume(12) growth offset
by H2 sports margins (-3.3pp YoY)
- Australia -6%cc(3), with positive year-on-year volume(12) growth in H2
offset by customer friendly sports results (-1.0pp YoY)
- Italy +6%cc(3) (Online +5%cc(3), Retail +7%cc(3)) with broadly stable market
share and positive online gaming trends
- Double-digit Online NGR(1) cc(3) growth in Georgia, Spain, Canada, Greece
and New Zealand, as well as significant recovery in Online NGR(1) trends in
Belgium & Netherlands during H2
• Entain CEE NGR(1) up +5%cc(3) (Online +6%cc(3), Retail -1%cc(3)), with
Croatia delivering double-digit volumes(12) through H2, partially offset by
year-on-year sports margin comparators (H2 -2.8pp)
• BetMGM net revenue(1) of $2,796m, up +33%cc(3) YoY, ahead of upgraded
expectations with strategic execution delivering strong and profitable growth
across both Online Sports (+63%cc(3)) and iGaming (+24%cc(3))
- FY25 EBITDA(4) of $220m (up $464m YoY) reflecting an inflection to
profitability and supporting $270m cash distribution to parents (Entain and
MGM Resorts)
FY25 financial highlights:
• Group Underlying EBITDA(4) at £1,160m, up +8%cc(3) YoY, ahead of
expectations, with Online Underlying EBITDA(4) £1,004m, +9%cc(3), and Retail
Underlying EBITDA(4) £277m, +6%cc(3)
- Total Group Underlying EBITDA(4), including 50% share of BetMGM(2), of
£1,244m, up +28%cc(3) vs prior year
• Group loss after tax of £681m after charging separately disclosed items
(inc. £488m impairment related to UK Gambling tax increases announced in
November 2025), finance charges, exchange differences and tax
• Continuing adjusted diluted EPS of 61.8p, +107% YoY, reflecting growth
across the Group and BetMGM
• Declared final dividend of 9.8p per share, +5% YoY
• Net debt of £3,644m, with reported leverage at 3.1x, look-through
leverage(16) at 3.6x (improved 0.7x YoY) and available cash of over
£900m(17), as at 31 December 2025
FY25 summary: 1 January 2025 to 31 December 2025
Total Group Results(11)
2025 2024 Change CC(3)
Year ended 31 December £m £m % %
Net gaming revenue (NGR(1)) 5,325.4 5,161.9 3% 4%
Revenue 5,259.4 5,089.2 3% 4%
Gross profit 3,200.1 3,118.1 3%
Underlying EBITDA(4) 1,160.1 1,088.8 7%
Underlying operating profit(14) 861.2 616.6 40%
Underlying profit before tax(14) 507.2 518.4 (2%)
Profit after tax pre separately disclosed items 355.6 379.5
Loss after tax (680.5) (461.0)
Diluted EPS (p) (104.3) (70.8)
Adjusted diluted EPS(15) (p) 61.8 29.9
Adjusted diluted EPS(15) exc. US (p) 51.6 46.9
Dividend per share (p) 9.8 9.3
Q4 2025 Trading performance:
Q4 2025: 1 October to 31 December 2025
Total NGR(1) Gaming Sports Sports Sports
NGR(1) NGR(1) Wagers Margin
Results(11) CC(3) CC(3)
UK & Ireland 1% 1% 7% (11%) 6% (2.6pp)
Online UK&I 6% 6% 12% (13%) 6% (2.1pp)
Retail UK&I (5%) (5%) 0% (9%) 6% (3.0pp)
International 4% 2% 9% (5%) 7% (1.2pp)
Online Int'l 4% 2% 10% (6%) 8% (1.3pp)
Retail Int'l 4% 1% (7%) 0% (1%) 0.3pp
CEE 5% (1%) 12% (7%) 3% (1.5pp)
Online CEE 8% 2% 13% (4%) 6% (1.2pp)
Retail CEE (7%) (12%) 4% (18%) (8%) (3.0pp)
Group (exc. US) 3% 1% 8% (7%) 6% (1.5pp)
Online 5% 3% 11% (7%) 7% (1.4pp)
Retail (3%) (4%) 0% (7%) 2% (1.8pp)
BetMGM 37% 39%
Online 35% 38% 18% 93% 3% 2.8pp
Retail 164% 161%
Total Group inc. 50% of BetMGM(2) 7% 6%
Online 10% 9%
Retail (2%) (3%)
FY25 Trading performance:
FY 2025: 1 January to 31 December
Total NGR(1) Gaming Sports Sports Sports
NGR(1) NGR(1) Wagers Margin
Results(11) CC(3) CC(3)
UK & Ireland 6% 6% 9% 2% 5% (0.5pp)
Online UK&I 15% 15% 18% 7% 8% (0.3pp)
Retail UK&I (2%) (2%) (3%) (1%) 2% (0.4pp)
International 0% 2% 4% 0% 3% (0.2pp)
Online Int'l 0% 2% 5% (1%) 4% (0.5pp)
Retail Int'l 3% 3% (8%) 3% (2%) 1.1pp
CEE 7% 5% 15% 2% (1%) 0.9pp
Online CEE 8% 6% 16% 3% (1%) 1.0pp
Retail CEE 1% 0% 4% (2%) (4%) 0.3pp
Group (exc. US) 3% 4% 7% 1% 3% (0.2pp)
Online 5% 6% 11% 1% 4% (0.3pp)
Retail (1%) (1%) (3%) 1% 0% 0.2pp
BetMGM 30% 33%
Online 31% 34% 24% 63% 16% 0.9pp
Retail (6%) (5%)
Total Group inc. 50% of BetMGM(2) 7% 8%
Online 9% 11%
Retail (1%) (1%)
CFO succession
As announced on 11 December 2025, Michael Snape joined Entain as Group Chief
Financial Officer ("CFO") Designate on 2 February 2026 and will be appointed
as Group CFO and Executive Director of the Board with effect from tomorrow, 6
March 2026. Michael succeeds Rob Wood who steps down as Group CFO & Group
Deputy CEO after 13 years with the Group, whilst remaining with Entain until
June 2026 to ensure an orderly transition of responsibilities.
Dividend
In line with the Group's progressive dividend policy, the Board has proposed a
total dividend for 2025 of £125m, (19.6p per share, up +5% YoY), paid to
shareholders in equal instalments with H1 and FY results. The second interim
dividend of £63m, is expected to be paid on 24 April 2026 to shareholders on
the register as at 13 March 2026.
Outlook
Entain expects FY26 Online NGR(1) (exc. US) growth of 5-7% on a constant
currency(3) basis, and remains comfortable with market expectations(8) for
FY26 Group Underlying EBITDA.
In 2026, Online Underlying EBITDA margin is expected to be in the range of
23-24%, which includes our unchanged expectation(9) to mitigate approximately
25% of the impact of the increased UK Online gambling tax being implemented
from 1 April 2026. From 2027, we upgrade our expectations(9) to offset over
50% of this incremental UK tax burden through Group-wide optimisation
initiatives, returning Underlying EBITDA(4) to its upward trajectory
year-on-year.
The Group's global scale, diversity and strong UK market position sees us well
placed to navigate regulatory and tax changes, with short term challenges
providing strategic opportunities. Supported by revenue growth and the Group's
intensified focus on cash generation, Entain reaffirms its confidence in
generating at least £500m of annual adjusted cashflow(7) in 2028, despite the
increase in UK Online gambling tax.
As previously announced(18), in FY26 BetMGM expects to deliver revenue of
$3.1-3.2bn and Adjusted EBITDA(6) of $300-350m, with confidence in its pathway
to delivering $500m Adjusted EBITDA(6) in 2027.
Notes
1 Net Gaming Revenue ("NGR") is defined as Net Revenue before charging for VAT
and Sales Taxes. A full reconciliation of this non-GAAP measure is provided
within the Income Statement
2 Non-GAAP measures including the Group's 50% share of BetMGM NGR and underlying
EBITDA are shown to facilitate the understanding of the Group's performance in
comparison to its peers. A reconciliation of these non-GAAP measures is shown
in Financial Results and the use of non-GAAP measures
3 Growth on a constant currency basis is calculated by translating both current
and prior year performance at the 2025 exchange rates
4 Underlying EBITDA is earnings before interest, tax, depreciation and
amortisation, share-based payments and share of JV income and separately
disclosed items
5 Previous guidance of FY25 Underlying EBITDA in the range of £1,100m to
£1,150m provided in 2025 Interim Results (12 August 2025)
6 BetMGM Adjusted Underlying EBITDA is defined as Underlying EBITDA before
parent fees. Parent fees are the operating expense to BetMGM for the
provision of certain licenses and services by the parent entities, MGM and
Entain, and their affiliates
7 Cashflow before working capital, equity dividends, acquisitions and associated
financing
8 As at 4 March 2026, Company compiled consensus for FY26 Group EBITDA of
£1126m (excluding BetMGM parent fees) based on 12 analyst estimates
9 As at 26 November 2025, Entain guided to expectation of mitigating
approximately 25% of annualised incremental impact of increased UK Gambling
taxes (Remote Gaming Duty and General Betting Duty) from implementation
10 Contribution represents gross profit less marketing costs and is a key
performance metric used by the Group
11 2025 results are audited and relate to continuing operations
12 Volume growth adjusts NGR to remove the impact of sports margin fluctuations
(assuming the same sports margin in both years)
13 Like-for-like growth performance excludes the impact of store closures
14 Stated pre separately disclosed items
15 Adjusted for the impact of separately disclosed items, foreign exchange
movements on financial indebtedness and losses/gains on derivative financial
instruments (see Note 9)
16 Look-through leverage is Group EBITDA, including 50% share of BetMGM EBITDA,
and net debt including total outstanding DPA settlement payments and the
estimated value of non-controlling interest in Entain CEE
17 Available cash reflects cash plus other debt related items balances less cash
held on behalf of customers and includes cash available under the RCF
18 BetMGM's guidance provided at FY25 results (4 February 2026)
Enquiries
Investor Relations - Entain plc investors@entaingroup.com (mailto:investors@entaingroup.com)
Media - Entain plc media@entaingroup.com (mailto:media@entaingroup.com)
Sodali & Co Tel: +44 (0) 20 7250 1446
Rob Greening/Russ Lynch/Sam Austrums entain@sodali.com (mailto:entain@sodali.com)
Presentation and webcast
Entain will host a Full Year 2025 Results presentation and Q&A session
today, 5(th) March at 9:30am GMT, at London Stock Exchange, 10 Paternoster
Square, London. EC4M 7LS.
Analysts and investors are welcome to attend in person, having pre-registered
via In-person registration
(https://entain-2025-full-year-results.open-exchange.net/registration)
Alternatively, please join the webcast approximately 15 minutes ahead of the
event: V
(https://entain-2025-full-year-results.open-exchange.net/registration) irtual
registration
(https://entain-2025-full-year-results.open-exchange.net/registration)
The presentation slides as well as a replay and transcript will be available
on our website: https://entaingroup.com/investor-relations/results-centre/
(https://entaingroup.com/investor-relations/results-centre/)
Upcoming dates:
Q1-26 Trading Update:
16 April 2026
Annual General
Meeting:
29 April 2026
2026 Interim results:
13 August 2026
Dividend Timetable
Announcement date:
5 March 2026
Ex-Dividend date:
12 March 2026
Record date:
13 March 2026
Payment date:
24 April 2026
Forward-looking statements
This document contains certain statements that are forward-looking statements.
They appear in a number of places throughout this document and include
statements regarding our intentions, beliefs or current expectations and those
of our officers, Directors and employees concerning, amongst other things,
results of our operations, financial condition, liquidity, prospects, growth,
strategies and the business we operate. These forward-looking statements
include all matters that are not historical facts. By their nature, these
statements involve risks and uncertainties since future events and
circumstances can cause results and developments to differ materially from
those anticipated. Any such forward-looking statements reflect knowledge and
information available at the date of preparation of this document. Other than
in accordance with its legal or regulatory obligations (including under the
Market Abuse Regulation (596/2014) as it forms part of English law by virtue
of the European Union (Withdrawal) Act 2018, the UK Listing Rules, the
Disclosure Guidance and Transparency Rules and the Prospectus Rules), the
Company undertakes no obligation to update or revise any such forward-looking
statements. Nothing in this document should be construed as a profit forecast.
The Company and its Directors accept no liability to third parties in respect
of this document save as would arise under English law.
About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest
sports betting and gaming groups, operating both online and in the retail
sector. The Group owns a comprehensive portfolio of established brands; Sports
brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS and SuperSport; Gaming brands include
Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group operates the TAB NZ brand as part of a long-term
strategic partnership with TAB New Zealand. The Group owns proprietary
technology across all its core product verticals and in addition to its B2C
operations, provides services to a number of third-party customers on a B2B
basis
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and
iGaming in the US. Entain provides the technology and capabilities which power
BetMGM as well as exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK and is the only
global operator to exclusively operate in domestically regulated or regulating
markets operating in over 30 territories.
Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AAA rated by
MSCI. For more information see the Group's website: www.entaingroup.com
(http://www.entaingroup.com/) .
LEI: 213800GNI3K45LQR8L28
CHIEF EXECUTIVE OFFICER'S REVIEW
Entain is a leading global sports betting and gaming group, operating in an
industry that has attractive structural growth dynamics. We are proud to be
the most diversified leader of scale in our sector, operating only in
regulated or regulating markets.
The Group has an enviable portfolio of podium positions and iconic brands,
diversified across product, channel and geography, operating in attractive
growth markets with a stable regulatory outlook.
Since becoming Entain in 2020, the Group has undergone a significant
transformation into a stronger, more sustainable business of global scale. Our
diversified and increasingly agile business, with leadership positions in
attractive growth markets, underpins the sustainability and quality of our
earnings; approximately 98% of the Group's revenue is from markets that are
growing, and over 87% of revenues come from markets where Entain has a
top-three position.
Having been appointed as CEO in April 2025 following a total of 11 months as
Interim CEO, I have had the privilege of leading the Group through the
operational phase of its improvement journey. The Group's foundations are
secure and have supported the business' return to growth and strong underlying
2025 performance. I have also taken the opportunity to more closely align our
Executive Committee with the Group's globally diversified portfolio,
strengthening the capabilities and commercial expertise of Entain's leadership
team. Entain is sharper, fitter and faster than ever before, and is well
positioned to embrace the many opportunities ahead.
Technology sits at the heart of Entain, our global operations and the journey
for our customers. We are focused on providing customers entertaining
experiences with engaging products and content, underpinned by leading,
in-market, player protection. The re-configuration of Entain's central
platform has been fundamental in strengthening our product offering and UX
with multiple end-to-end improvements. It is enabling greater agility, greater
velocity of delivery and greater innovation, as well as unlocking significant
opportunities for efficiencies and growth in the future. Our platform-first
modular API architecture will enable Entain's proprietary regional platforms
to benefit from the "best of both", by leveraging modules of our globally
scaled tech stack alongside dedicated local squads of expertise and
capabilities. This flexible approach embraces innovation and provides
strategic optionality for Entain's future opportunities.
Regulation is a cornerstone of our industry; a well-enforced, strong
regulatory framework is fundamental to having a balanced and effective regime
for all counterparts, operators, regulators, governments, and most
importantly, players. Appropriate taxation is a critical part of this balance
as well as addressing the threat posed by unlicensed black market operators,
who pay no tax and offer no protections for players.
In November 2025, the UK Government took the extremely disappointing decision
to dramatically increase taxes levied on online gambling revenues. Not only
will this likely generate lower tax revenues, it will damage our industry,
stifle growth and open the door to those unlicensed operators. As such, 2025
included an impairment charge against our UK business related to these UK
gambling tax increases.
As a globally scaled business, Entain is amongst the handful of Tier 1
operators able to digest such a dramatic increase in taxes, particularly
versus smaller peers. Although it is too soon to determine the impact on the
underlying UK market and its future growth, Entain believes that over time
this near-term challenge will be a significant strategic opportunity for the
Group as the market dynamics adjust to the higher tax regime.
To seize this opportunity whilst also digesting the incremental tax burden,
Entain has to be fighting fit. We must accelerate our pace to win during this
next phase of our transformation. By enabling greater agility and unlocking
further efficiencies across the Group, we are confident in our pathway to
offsetting over 50% of the impact from increased UK gambling taxes, through
Group-wide optimisation initiatives. The combination of many individual
initiatives will drive powerful improvements to our growth, operational
execution, margins and cash generation. As we look forward to 2026 and beyond,
I am excited by the many and varied opportunities that Entain has ahead of it;
opportunities to continue improving at pace, to learn, and to win. I am
immensely proud to lead this fantastic business which I firmly believe has
what it takes to be the best in the industry. We are continuing to work hard
to realise Entain's full potential; winning together, the right way, and
delivering value for all our shareholders.
2025 performance
2025 has been an important year for Entain, with strong performances across
the Group evidencing the powerful underlying growth that we have re-ignited in
our business.
Building on 2024 as a year of transformation for the Group, during 2025,
Entain's Online business returned to delivering NGR(2) growth at least in line
with the underlying market. This momentum has driven seven consecutive
quarters of positive year-on-year Online growth with Entain and BetMGM also
both delivering strong year-on-year organic Underlying EBITDA(3) growth.
Total Group NGR(2) including our 50% share of BetMGM(4) was up +7%, +8%cc(2).
Excluding BetMGM, Group NGR(2) was up 3% and +4%cc(6), whilst BetMGM grew
Net Revenue by +33%cc(6) compared to the prior year.
Entain's Online operations delivered year-on-year NGR(2) growth of +6%cc(6)
and Retail delivered stable NGR at -1%cc(6) year-on-year, despite lapping
prior year comparators which strengthened in line with our progress through
2024. The breadth of Entain's portfolio of podium positions, by geography,
channel and product, provides resilience and sustainability of earnings, with
strong performances across many markets enabling us to digest challenges
whilst still delivering growth.
Importantly, Entain's diverse and high-quality growth translated into an
increase in underlying profitability. The Total Group including our 50% share
of BetMGM(4) delivered Underlying EBITDA(3) of £1,244m up +28%cc(6) YoY, with
Group Underlying EBITDA(3) of £1,160m, up +8%cc(6) and BetMGM EBITDA
of $220m.
I am delighted that both Entain and BetMGM reported 2025 earnings ahead of
their respective guidance ranges, with had been upgraded through the year
reflecting our strong progress, improving execution and confidence in the
outlook.
FY2025 Online Net Gaming Revenue(2) YoY
Reported CC(6)
Group Online inc. 50% BetMGM(4) 9% 11%
Online exc. 50% BetMGM 5% 6%
UK&I 15% 15%
International -% 2%
Australia (11%) (6%)
Italy 6% 5%
Brazil (7%) (1%)
New Zealand 10% 19%
Georgia 10% 14%
Spain 37% 35%
Other (3%) (2%)
Entain CEE 8% 6%
Croatia 10% 9%
Poland 5% 3%
FY2025 Retail Net Gaming Revenue(2) YoY
Reported CC(6)
Group Retail inc. 50% BetMGM(4) (1%) (1%)
Retail exc. 50% BetMGM (1%) (1%)
UK&I (2%) (2%)
UK&I LFL(7) (1%) -%
International 3% 3%
Italy 8% 7%
New Zealand (6%) 1%
Belgium (8%) (9%)
Entain CEE 1% -%
Croatia (4%) (5%)
Poland 7% 4%
During 2025, the Group continued to make significant progress on its journey
of transformation. Reflecting on our operational and commercial achievements,
Entain's strategic priorities have also evolved. Having reignited our powerful
growth engine, our increased bandwidth enables the Group to expand its
capacity for driving growth, expanding margins and delivering strong and
sustainable cash generation.
For Entain to be a true Tier 1 operator in the global sports betting and
gaming industry and deliver value to all our stakeholders, we must be bold in
our ambitions and behaviours. Entain's growing strength and confidence
empowers us to elevate our performance and accelerate the delivery of
Entain's strategic priorities:
• Organic growth - accelerating performance to outperform underlying
market growth across our diverse portfolio
• Margin expansion - supporting a flexible, agile and effective operating
model, driving greater capital returns and closing the efficiency gap to our
sector's best-in-class
• Cash generation - this shared priority across the Group ensures every
part of Entain focuses on generating sustainable value with disciplined
investment and capital allocation
Organic revenue growth
The cornerstone of our business' sustainable and resilient underlying growth
is our ability to acquire and retain players by offering entertaining products
and engaging experiences. Our customers are central to our mindset, and
through 2025 we accelerated the pace of our initiatives, delivering multiple
improvements to our offering driven by our strengthened technology and product
capabilities. Coupled with our enhanced offering, we refocused our customer
acquisition approach with greater emphasis on performance marketing, to drive
growth in markets where there are the greatest strategic or commercial
returns.
Our stronger, fitter and faster business has enabled Entain's executional
focus to expand outside its previous "must win" markets. Our increased
bandwidth and enhanced capabilities continue also to drive meaningful growth
in other regions across the Group's portfolio. Entain's Online business has
returned to consistently delivering growth at least in line with our markets,
and our strengthened operations and high quality diverse portfolio secure
Entain's position to digest challenges whilst also capturing future growth
opportunities.
UK & Ireland
The UK&I is Entain's largest market, and its growth is crucial to the
Group's overall performance. 2025 has been a strong year for our UK&I
business, consistently performing ahead of expectations and reporting NGR(2)
growth of +6%cc(6) year-on-year. Online growth of +15%cc(6) was a notable
highlight as the business demonstrated continuing strong underlying momentum
despite lapping tougher comparators in the second half from 2024's
strengthening performance. This impressive year-on-year performance sees us
regaining market share. In Online, both sports and gaming delivered strong
double-digit NGR(2) growth, with growth in player values and engagement
reflecting our improving player experience. Gaming grew +18%cc(6) as players
enjoyed our leading gaming offering and content, whilst our enhancements to
Sportsbook product and UX, supported Sports NGR(2) growth of +7%cc(6).
The UK&I is an omnichannel market, with Entain benefiting from iconic
brands and strong retail footprint. Our UK&I Retail business performed
well, outperforming the underlying market with NGR(2) flat cc(6) on a
like-for-like(7) basis, supported by our digital in-shop environments
including Group BetStation sports terminals and market leading next-generation
Kascada gaming cabinets.
In November 2025, the UK Government announced its decision to dramatically
increase taxes levied on Online gambling revenues. With implementation from
1st April 2026, UK market operators will face a significant incremental tax
burden. We will closely monitor shifting behaviours to determine the impact of
this higher tax regime. Importantly, given the heritage and strengthening
position of our UK business, Entain views this near-term challenge as a
significant strategic opportunity for the Group.
International
Australia is the largest Online market in our International division. Its
performance during 2025 reflects the ongoing softness in the underlying market
as well as highly customer-friendly results at the tent-pole sports events
through 2025. Whilst NGR(2) was -6%cc(6) lower vs. 2024, year-on-year growth
improved through the year with new local management's reinvigorated approach
delivering market share gains through its disciplined focus on returns and
product innovation. Importantly, volumes(8) were broadly flat year-on-year (on
constant currency(6) basis), reflecting the improving engagement and quality
of our player base as Ladbrokes and Neds continue to differentiate themselves
in this product-led market. Entain Australia's partnership with TAB NZ
continues to build momentum as more New Zealand customers enjoy our enhanced
sports betting experience across both TAB NZ and betcha brands. Notably, in
June, the New Zealand Government introduced legislation which restricts
offshore unlicensed operators offering racing and sports betting to New
Zealand customers. In H2, our New Zealand business saw NGR(2) growth jump to
+17%cc(6) with betcha, our complementary online-only sister brand,
particularly resonating with returning onshore customers. We are excited about
this growing market opportunity and look forward to online casino regulation
in the future as the regulatory bill continues to make positive progress.
Brazil is expected to be the fastest growing regulated market outside of the
US. Following its launch of the licensed sports betting and gaming regime on 1
January 2025, the operating landscape and regulated channelisation is still
adjusting to the new framework. This long-term attractive market continues to
be intensely competitive and highly promotional. Entain's business in Brazil
performed well through 2025, with a successful day one licensed launch and
strong player engagement across both sports and gaming. FY2025 Online NGR(2)
was broadly flat cc(6) year-on-year, reflecting strong prior year comparators
and notable year-on-year swings in Q4 sports results. Growth in sports wagers
and an increase in volumes(8) of 13%cc(6) is encouraging and testament to the
focused execution by our local management supported by the Group's proprietary
technology and product offering. Our disciplined approach to player
acquisition and promotional generosity sees Entain delivering profitable
growth, with positive Underlying EBITDA(3) despite absorbing £54m of new
taxes introduced alongside regulation. Our localised offering benefited
from Sportingbet's brand reinvigoration, whilst the partnership with
Palmeiras football club is driving good player engagement and sees us well
positioned for long-term success in the market.
In Italy, our business operates in a competitive and recently consolidated
market, with omnichannel operators continuing to outperform online only
operators as brand recognition and physical points-of-sale remain the key
drivers of online customer acquisition and engagement. During 2025 Entain
broadly retained market share with NGR(2) growth of +6%cc(6), (Online
+5%cc(6), Retail. +7%cc(6)), despite tough year-on-year sports margin
comparators in Q4. The Italian market underlying growth remains strong and, as
we look to 2026 Entain's multi-brand business and improving customer offering
is well placed to benefit from the renewed online licensing regime implemented
in November 2025.
Entain CEE
Our Entain CEE business continues to perform well. NGR(2) grew +5%cc(6) YoY
with +6%cc(2) in Online and Retail flat cc(6). Whilst this attractive growth
region remains competitive, our SuperSport and STS brands maintained their #1
market positions.
In Croatia, SuperSport delivered another year of strong performance. NGR(2)
grew +7%cc(6) YoY (Online +9%cc(6), Retail -5%cc(6)) reflecting our strong
brand and engaging product, with particularly pleasing performance in gaming
(+15%cc(6)) offsetting customer friendly sports results. In Poland, STS
performed well, with NGR(2) growth of +3%cc(6) whilst the market's heightened
competitive intensity continues. STS's disciplined approach is delivering
profitable growth in this sports only market, which is experiencing inflated
customer incentives ahead of Poland's potential liberalisation of iGaming in
the medium term.
BetMGM
BetMGM's excellent performance during 2025 is a significant achievement for
BetMGM itself, as well as being a key milestone on Entain's journey of
transformation. BetMGM's end-to-end offering is built in partnership with
Entain and MGM Resorts and is powered by Entain's technology and product
capabilities. 2025 was a record year for BetMGM. Its successful strategic
execution has seen the business inflect into delivering strong, sustainable
and profitable growth, as well as firmly reinforcing its podium position in
the world's largest sports betting and gaming market.
Building on momentum created during 2024, BetMGM's better than expected
performance throughout 2025 evidence the business' underlying strength and
supported repeated FY25 guidance upgrades during the year. After H1 net
revenue growth of +35%cc(6), its strong performance continued through H2, with
its record week, month and quarter all achieved in Q4. 2025 net revenue of
$2,796m was up 33%cc(6) vs. last year with $220m of EBITDA, up an impressive
$464m YoY.
Central to BetMGM's strengthened business was the successful refinement of its
player engagement strategy towards "premium mass" customers. This was
supported by our leading iGaming offering, key product improvements
particularly for online sports, as well as enhanced UX driving growth in
player acquisition, engagement and retention.
BetMGM's omnichannel offering is also a key differentiator, providing a
powerful strategic advantage, engaging an ever-refreshing flow of potential
new players, during their Nevada stay and also when they return to their
home state.
During 2025, BetMGM's iGaming business continued to grow strongly and deliver
attractive returns, with net revenues up +24%cc(6) and contribution(9) of over
$500m, despite no new state launches.
Our upgraded Online Sports product saw net revenue growth of an impressive
+63%cc(6) with the improved app offering our smoothest and most intuitive
experience to date. BetMGM was also pleased to launch on day one in Missouri
in December, bringing its Online Sports footprint to 30 legalised states.
The combination of continued strong revenue momentum, marketing efficiencies,
attractive player metrics and the maturing existing player cohorts, see BetMGM
now generating material EBITDA. In 2025, BetMGM achieved $607m
contribution(9), with EBITDA of $220m exceeding expectations, enabling the
business to distribute a total of $270m of cash to joint venture parents
Entain and MGM Resorts.
Without the distraction of launching and competing in the highly competitive
and unregulated Prediction Markets space, BetMGM has its own clear roadmap for
growth. We look forward to the Canadian province of Alberta launching its
newly regulated Online Sports and iGaming regime during 2026, and remain
hopeful that further bills for potential regulation of Online Sports and
Gaming will be introduced in the coming years.
BetMGM's proven and successful strategy reinforces our confidence in its
pathway to Adjusted EBITDA(10) of $500m in 2027. The business is as healthy
as it has ever been and we are excited about its future opportunities.
Margin expansion
The Group's focus on organic growth is paired with margin expansion.
Fundamental to Entain's transformation to being stronger and more agile was
the simplification of our structures and operating model, enabling us
to deliver more effectively and grow more efficiently.
The year-on-year expansion of our FY25 Online Underlying EBITDA(3) margin,
despite digesting 1.4pp of incremental taxes, and maintaining commercial yet
disciplined marketing investment, is testament to the powerful operating
leverage that our scaled business model enjoys.
Our efficient execution provides potential for reinvestment, drives greater
capital returns
and supports further growth. Building scaled operational leverage is vital to
supporting ongoing margin expansion over time, particularly as our industry
continues to face tax increases as well as wider inflationary cost pressures.
The successful implementation of our efficiency programme now sees Entain
delivering at least £100m annual savings from 2026 onwards. However, across
the Group there is still more work for us to do to close the efficiency gap to
our best-in-class peers. Our next phase of optimisation initiatives will
enable our operations to remain agile and effective, whilst also supporting
Group-wide efforts to offset the significant increase in UK gambling taxes.
Cash Generation
Importantly, our strategic priorities of organic growth and margin expansion
must be coupled with the business' ability to deliver profitable growth which
flows into generating cash. During 2025, Entain has heightened its focus on
this important measure of success, and it now joins our strategic priorities
to ensure each and every part of the Group demonstrates disciplined investment
and capital allocation.
The Group has a clear pathway to annually generating at least £500m of annual
adjusted cash flow(11) from 2028, supported by our attractive structural
dynamics which underpin high-quality earnings growth for both Entain and
BetMGM. Being disciplined in how we invest our capital, how we conduct our
operations, delivering growth and winning the right way, is a key component of
long-term value creation, and therefore has to be a priority across our
business.
2025 sustainability highlights:
At Entain, sustainability is integral to our strategy and long-term success.
The four pillars of our sustainability strategy direct our activity and seek
to deliver the best outcomes for our customers, employees, communities and
other stakeholders:
• Be a leader in player protection: We operate only in regulated or
regulating markets, with ethics and integrity at the core of our business. We
refreshed our Group wide training curriculum achieving a 98% completion rate
across the programme, reflecting continued progress in embedding a strong
ethical and compliance culture. We appointed a new Chief Technology and
Information Officer and established an AI Governance Committee to ensure
responsible use of artificial intelligence, alongside robust cybersecurity and
data privacy oversight.
• Provide a secure and trusted platform: We operate only in regulated or
regulating markets, with ethics and integrity at the core of our business. We
refreshed our Group wide training curriculum achieving a 98% completion rate
across the programme, reflecting continued progress in embedding a strong
ethical and compliance culture. We appointed a new Chief Technology and
Information Officer and established an AI Governance Committee to ensure
responsible use of artificial intelligence, alongside robust cybersecurity and
data privacy oversight.
• Create an environment for everyone to do their best work: We strive to
be an employer of choice, with an inclusive and supportive culture where
talent from all backgrounds can thrive. In 2025, we introduced a new approach
to performance management to support employee growth and strengthen our
feedback culture, and launched our first immersive leadership development
programme to build the next generation of leaders at Entain. We were
encouraged to see our employee engagement score rise by seven points to 84,
with the most significant uplifts in scores realised in communication, company
direction and listening.
• Positively impact our communities: We announced new environmental
targets, including a commitment to reduce Scope 1 and 2 emissions by 90% by
2035 (from a 2023 baseline) as part of our net zero ambition, and expanded our
renewable energy procurement into Poland and Croatia. Furthermore, our
Pitching In programme was recognised as Grassroots Initiative of the Year at
the Global Football Industry Awards..
The sustainability reporting landscape continues to evolve, which we view as
an opportunity to strengthen stakeholder engagement, embed robust governance
practices and enhance business resilience. During the year, we refreshed our
double materiality assessment in preparation for reporting under the EU
Corporate Sustainability Reporting Directive. This process brought together
expertise from across the Group to identify and assess our most material
sustainability-related impacts, risks and opportunities across our operations
and value chain. These efforts position us to respond effectively and support
compliance with emerging global sustainability frameworks, including CSRD and
ISSB, as requirements continue to develop.We were also proud to be recognised
and certified externally through:
• Retaining our Tier 1 status in the CCLA Corporate Mental Health
Benchmark 2025;
• Extended our ISO 27001 (Information Security) certification to our
office in Pune, India - building on our success in gaining certification
across 27 offices in 2024;
• Renewing our ISO14001 (Environmental Management) certification in the
UK;
• Receiving three awards and 17 nominations at the Women in Gaming
Diversity Awards 2025;
• Receiving an award for Outstanding LGBTQ+ Network of the Year at the
Diversity Network Awards;
• Receiving five awards at the Sponsorship Awards for bwin's support to
sports and Greek society; and
• Being awarded Grassroots Initiative of the Year for Pitching In at the
Global Football Industry Awards.
In summary, 2025 was a successful year for the Group, delivering both
strategically and financially.
Our industry enjoys attractive growth dynamics, with Entain's diverse and
globally scaled portfolio of positions more important than ever in ensuring we
are a long-term winner, delivering sustainable and quality earnings growth. We
continue to drive to be stronger, fitter and faster. I am confident that
Entain is well placed to not only navigate challenges ahead, but seize them as
strategic opportunities and emerge stronger.
I am excited about our future, continuing our hard work to realise Entain's
full potential; winning together, the right way and delivering value for all
our stakeholders.
Notes
1 Previous Entain guidance of FY25 Underlying EBITDA in the range of £1,100m to
£1,150m provided in 2025 Interim Results (12 August 2025) and BetMGM guidance
of Net Revenue of at least $2.75bn and EBITDA of c$200m provided in Q3 2025
Business Update on 14 October 2025
2 Net Gaming Revenue (“NGR”) is defined as Net Revenue before charging for
VAT and Sales Taxes. A full reconciliation of this non-GAAP measure is
provided within the Income Statement
3 Underlying EBITDA is earnings before interest, tax, depreciation and
amortisation, share-based payments and share of JV income and separately
disclosed items
4 Non-GAAP measures including the Group’s 50% share of BetMGM NGR and
underlying EBITDA are shown to facilitate the understanding of the Group’s
performance in comparison to its peers. A reconciliation of these non-GAAP
measures is shown in Financial Results and the use of non-GAAP measures
5 2025 results are audited and relate to continuing operations
6 Growth on a constant currency basis is calculated by translating both current
and prior year performance at the 2025 exchange rates
7 Like-for-like growth performance excludes the impact of store closures
8 Volume growth adjusts NGR to remove the impact of sports margin fluctuations
(assuming the same sports margin in both years)
9 Contribution represents gross profit less marketing costs and is a key
performance metric used by the Group
10 BetMGM Adjusted Underlying EBITDA is defined as Underlying EBITDA before
parent fees. Parent fees are the operating expense to BetMGM for the
provision of certain licenses and services by the parent entities, MGM and
Entain, and their affiliates
11 Cashflow before working capital, equity dividends, acquisitions and associated
financing
Financial Results and the use of non-GAAP measures
The Group's statutory financial information is prepared in accordance with
International Financial Reporting Standards ("IFRS") and IFRS Interpretations
Committee (IFRS IC) pronouncements as adopted for use in the European Union.
In addition to the statutory information provided, management have also
provided additional information in the form of NGR(1), Contribution(10) and
Underlying EBITDA(4) as these metrics are industry standard KPIs which help
facilitate the understanding of the Group's performance in comparison to its
peers. A full reconciliation of these non-GAAP measures is provided within the
Income Statement and supporting memo.
In addition, also to support the understanding of the Group's performance in
comparison to its peers, information on NGR(1) and Underlying EBITDA(4)
performance including the Group's 50% share(2) of our US joint venture BetMGM
and adjusted cashflow has been provided. A reconciliation of these non-GAAP
measures is provided below:
Total Group (inc US) Results
2025 2024 Change CC
Year ended 31 December £m £m % %
Reported NGR(1) 5,325.4 5,161.9 3% 4%
50% share of BetMGM NGR(1) 1,065.2 820.1 30% 33%
Group plus 50% share of BetMGM NGR(1,2) 6,390.6 5,982.0 7% 8%
Underlying EBITDA(4) 1,160.1 1,088.8 7% 8%
50% share of BetMGM EBITDA(4) 83.5 (94.4) 188% 188%
Group plus 50% share of BetMGM Underlying EBITDA(2,4) 1,243.6 994.4 25% 28%
Adjusted cash flow
2025
Year ended 31 December £m
Net cash generated from operating activities less net cash used in investing 318.3
activities
Payment of lease liabilities (76.8)
TAB NZ ongoing revenue share (58.8)
Dividends paid to non-controlling interests (48.9)
Net movement in working capital balances 48.0
Other(15) (31.1)
Adjusted cash 150.7
During the current year, the Group has amended the presentation of NGR into 3
categories, sports NGR, gaming NGR and other NGR, to better align with both
peers and internal reporting. Other NGR includes B2B revenue, which has
previously been reported separately, but also immaterial items that were
previously allocated to either sports NGR or gaming NGR based on their nature.
Restatement of the segments and channels on a consistent basis can be found
at:
https://entaingroup.com/investor-relations/results-centre/
(https://entaingroup.com/investor-relations/results-centre/)
CHIEF FINANCIAL OFFICER'S REVIEW
Financial Performance Review
Group
Results(11)
2025 2024 Change cc(3)
Year ended 31 December £m £m % %
Net Gaming Revenue(1) 5,325.4 5,161.9 3% 4%
VAT/GST (66.0) (72.7) 9% 4%
Revenue 5,259.4 5,089.2 3% 4%
Gross profit 3,200.1 3,118.1 3%
Contribution(10) 2,568.7 2,480.5 4%
Operating costs (1,408.6) (1,391.7) (1%)
Underlying EBITDA⁴ 1,160.1 1,088.8 7%
Share-based payments (12.1) (13.3) 9%
Underlying depreciation and amortisation(14) (352.9) (344.7) (2%)
Share of JV income/(loss) 66.1 (114.2) 158%
Underlying operating profit(14) 861.2 616.6 40%
Results(11):
NGR(1) and Revenue both increased by +3% (+4%cc(3)) versus the prior year,
with strong underlying performance in several of our key markets led by UK
online.
Contribution(10) in the year of £2,568.7m was +4% higher than 2024.
Contribution(10) margin was +0.1pp higher than 2024, the additional tax in the
newly regulated Brazilian market, offset by other cost of sales and marketing
efficiencies.
Operating costs were 1% higher driven by inflation and continued investment in
product and technology, offset by rigorous cost control and efficiency
improvements. Resulting Underlying EBITDA(4) of £1,160.1m was +7% higher than
2024.
Share-based payment charges were £1.2m lower than 2024, while underlying
depreciation and amortisation(14) was 2% higher, reflecting the continued
investment in product. Share of JV profit of £66.1m includes an operating
profit of £66.0m relating to BetMGM (2024: loss of £109.4m).
Group underlying operating profit(14) of £861.2m was +40% higher than 2024.
After separately disclosed items of £1,055.2m (2024: £866.7m), the Group
made an operating loss of £194.0m (2024: loss of £250.1m).
UK & Ireland
UK & Ireland Total UK & Ireland Online UK & Ireland Retail
FY FY Change FY FY Change FY FY Change
2025 2024 2025 2024 2025 2024
Year ended 31 December £m £m % £m £m % £m £m %
Sports wagers 5,150.5 4,920.4 5% 2,460.9 2,276.2 8% 2,689.6 2,644.2 2%
Sports margin 16.5% 17.0% (0.5pp) 13.2% 13.5% (0.3pp) 19.6% 20.0% (0.4pp)
Sports NGR(1) 795.9 779.0 2% 282.0 262.3 8% 513.9 516.7 (1%)
Gaming NGR(1) 1,367.6 1,252.9 9% 849.9 721.3 18% 517.7 531.6 (3%)
Other NGR(1) 21.7 21.5 1% 4.6 1.0 360% 17.1 20.5 (17%)
Total NGR(1) 2,185.2 2,053.4 6% 1,136.5 984.6 15% 1,048.7 1,068.8 (2%)
EU VAT/GST (5.1) (4.3) (19%) (5.1) (4.3) (19%) - - -%
Revenue 2,180.1 2,049.1 6% 1,131.4 980.3 15% 1,048.7 1,068.8 (2%)
Gross profit 1,489.0 1,395.8 7% 727.7 625.8 16% 761.3 770.0 (1%)
Contribution(10) 1,250.9 1,169.4 7% 492.0 401.5 23% 758.9 767.9 (1%)
Contribution(10) margin 57.2% 56.9% 0.3pp 43.3% 40.8% 2.5pp 72.4% 71.8% 0.6pp
Operating costs (719.0) (732.1) 2% (181.5) (175.4) (3%) (537.5) (556.7) 3%
Underlying EBITDA⁴ 531.9 437.3 22% 310.5 226.1 37% 221.4 211.2 5%
Share-based payments (1.6) (5.9) 73% (1.6) (4.1) 61% - (1.8) 100%
Underlying depreciation and amortisation(14) (144.0) (145.8) 1% (56.2) (54.4) (3%) (87.8) (91.4) 4%
Underlying operating profit(14) 386.3 285.6 35% 252.7 167.6 51% 133.6 118.0 13%
Results(11):
After a strong first half, where UK & Ireland NGR(1) grew by +9%cc(3),
momentum continued into Q3, at +8%cc(3), easing in the final quarter due to
customer friendly sports margins, down -2.6pp on the prior year. Underlying
volumes(11) in Q4 were +7%cc(3) as we continue to see the benefits of
streamlined customer journeys and improved product and player experience.
In Online, NGR(1) was +15%cc(3) YoY with both sports NGR(1) +7%cc(3) and
gaming NGR(1) +18%cc(3) ahead. Online volumes(12) were +16%cc(3) ahead of
2024, with double-digit growth in all quarters, reflecting the increased
player values driven by our improved customer experience.
In Retail, NGR(1) was -2%cc(3) YoY and in line cc(3) on a like-for-like
(LFL)(13) basis. Sports NGR(1) was -1%cc(3) and gaming NGR(1) -3%cc(3).
Encouragingly, year-on-year volumes(12) improved sequentially each quarter
and, in Q4, reached +2%cc(3).
Gross profit of £1,489.0m was £93.2m ahead of 2024 with a margin of 68.1%,
slightly ahead of 2024. Marketing spend was £11.7m higher than 2024,
resulting in contribution(10) of £1,250.9m, +£81.5m ahead of 2024.
Operating costs were 2% lower than 2024 reflecting continued cost control
savings and normal shop closures in Retail. Resulting Underlying EBITDA(4) of
£531.9m was £94.6m higher than 2024. After charging underlying depreciation
and amortisation(14),1% lower than the prior year, and share-based payments,
underlying operating profit(14) was £386.3m.
As a result of the recently announced tax changes in the UK online business,
an impairment charge of £487.7m has been recognised. Additionally, continued
challenges remain against our Retail estate in ROI resulting in impairments
being recorded of £18.3m.
After separately disclosed items, including the impairments, of £510.0m
(2024: £3.8m), the operating loss was £123.7m (2024: profit of £281.8m).
International
International Total International Online International Retail
FY FY Change FY FY Change FY FY Change
2025 2024 2025 2024 2025 2024
Year ended 31 December £m £m % £m £m % £m £m %
Sports wagers 12,377.2 12,382.3 -% 10,833.8 10,791.0 -% 1,543.4 1,591.3 (3%)
Sports margin 14.3% 14.5% (0.2pp) 13.6% 14.1% (0.5pp) 18.7% 17.6% 1.1pp
Sports NGR(1) 1,462.0 1,507.9 (3%) 1,173.0 1,227.1 (4%) 289.0 280.8 3%
Gaming NGR(1) 1,038.1 1,003.8 3% 1,024.5 988.8 4% 13.6 15.0 (9%)
Other NGR(1) 143.2 128.7 11% 127.5 114.9 11% 15.7 13.8 14%
Total NGR(1) 2,643.3 2,640.4 -% 2,325.0 2,330.8 -% 318.3 309.6 3%
EU VAT/GST (60.9) (68.4) 11% (55.6) (63.0) 12% (5.3) (5.4) 2%
Revenue 2,582.4 2,572.0 -% 2,269.4 2,267.8 -% 313.0 304.2 3%
Gross profit 1,406.8 1,443.4 (3%) 1,282.0 1,321.5 (3%) 124.8 121.9 2%
Contribution(10) 1,044.0 1,062.0 (2%) 928.0 950.9 (2%) 116.0 111.1 4%
Contribution(10) margin 39.5% 40.2% (0.7pp) 39.9% 40.8% (0.9pp) 36.4% 35.9% 0.5pp
Operating costs (479.2) (468.0) (2%) (411.3) (397.2) (4%) (67.9) (70.8) 4%
Underlying EBITDA⁴ 564.8 594.0 (5%) 516.7 553.7 (7%) 48.1 40.3 19%
Share-based payments (2.0) (3.9) 49% (2.0) (3.9) 49% - - -%
Underlying depreciation and amortisation(14) (186.8) (180.0) (4%) (149.5) (143.4) (4%) (37.3) (36.6) (2%)
Share of JV (loss)/income (1.1) (3.1) 65% (1.1) (3.1) 65% - - -%
Underlying operating profit(14) 374.9 407.0 (8%) 364.1 403.3 (10%) 10.8 3.7 192%
Results(11):
International NGR(1) for 2025 was in line with 2024, and +2%cc(3) on a
constant currency basis, with strong underlying performances in New Zealand,
Georgia, Spain and Canada in particular. Sports NGR(1) was in line cc(3)
year-on-year, and gaming NGR(1), +4%cc(3). International Online NGR(1) was
flat versus 2024, and +2%cc(3) ahead on a constant currency basis. Normalising
for the impact of the lower sports margin in 2025, underlying volumes(12) were
+4%cc(3) ahead of the prior year. Retail NGR(1) grew +3%, +3%cc(3).
Having grown by +21%cc(3) in H1, Brazil NGR(1) was down by -18%cc(3) in the
second half, leaving the full year at -1%(.)cc(3). Brazil was particularly
impacted by customer friendly results in H2, with sports margin -3.3pp lower
than last year, however, pleasingly, volumes(12) in the full year were
+13%cc(3) ahead of 2024, in this extremely competitive and newly regulated
market, and lapping a tough prior year comparator. We remain confident that
Sportingbet is well placed for growth in this highly competitive market.
Online NGR(1) in Australia was -6%cc(3) behind 2024. Like many of our markets,
sporting results were unfavourable during H2, with sports margin -1.0pp vs
2024, and NGR(1) -5%cc(3 .)However, our newly reinvigorated local management
team are now seeing positive trends in underlying volumes(12), up +3%cc(3) in
H2. 2026 has started well for our Australian brands Ladbrokes and Neds, and we
look forward to further improved performance in the year ahead.
Italy NGR(1) was +6%cc(3) ahead of 2024, Online NGR(1) +5%cc(3) and Retail
NGR(1) +7%cc(3). We have broadly maintained market share, enjoying the brand
recognition provided by our omnichannel offering.
NGR(1) growth in New Zealand accelerated from +12%cc(3) in H1 to +17%cc(3) in
H2, partly due to the introduction of legislation which restricts offshore
unlicensed operators from offering racing and sports betting to New Zealand
customers. Online NGR(1) was up +19%cc(3), and retail NGR(1) was up +1%cc(3).
Baltics and Nordics NGR(1) was +10cc(3) YoY with inflationary pressures in the
region starting to ease and our content leadership strategy landing well.
Impacted by known regulatory headwinds, NGR(1) in Belgium was -8%cc(3)
(-7%cc(3) in online and -9%cc(3) in retail), whilst NGR(1) in the Netherlands
was down -25%cc(3) on 2024 In Germany, NGR(1) was -12%cc(3) with underlying
volumes(12) improving throughout the year to -3%cc(3) in Q4. Georgia NGR(1)
was +14%cc(3) ahead of 2024, sports NGR(1) up +9%cc(3) and gaming NGR(1) up
+15%cc(3), with Crystalbet maintaining its market leading position.
Having absorbed £54m of incremental Brazilian taxes following regulation on 1
January 2025, gross profit for our International segment was -3% behind 2024.
This was partially offset by lower marketing, £18.6m favourable year-on-year,
leaving contribution(10) margin down -0.7pp, and contribution(10) -2% lower at
£1,044.0m.
Operating costs were 2% higher year-on-year, with inflation offset by cost
efficiencies. Resulting Underlying EBITDA(4) of £564.8m was £29.2m behind
2024, and after deducting underlying depreciation and amortisation(14) and
share-based payments, underlying operating profit(14) was £374.9m, £32.1m
behind 2024. The £6.8m increase in underlying depreciation and
amortisation(14) relates to investment in product.
As a result of the ongoing rationalisation of the Belgium retail estate, which
consequentially impacted the online business, an impairment of £76.9m has
been recognised. Additionally, our Full House Group business, a supplier of
in-venue entertainment services in Australia, has been impaired by £3.9m, in
line with the recoverable amount of the business following sale negotiations.
After separately disclosed items of £250.3m (2024: £524.0m), the operating
profit was £124.6m (2024: £117.0m).
CEE (Croatia and Poland)
CEE Total CEE Online CEE Retail
FY FY Change FY FY Change FY FY Change
2025 2024 2025 2024 2025 2024
Year ended 31 December £m £m % £m £m % £m £m %
Sports Wagers 1,593.1 1,582.7 1% 1,340.7 1,325.4 1% 252.4 257.3 (2%)
Sports Margin 23.7% 22.8% 0.9pp 23.1% 22.1% 1.0pp 26.7% 26.4% 0.3pp
Sports NGR(1) 343.3 331.3 4% 276.5 264.4 5% 66.8 66.9 (0%)
Gaming NGR(1) 146.6 126.5 16% 135.6 116.0 17% 11.0 10.5 5%
Other NGR(1) 31.8 30.2 5% 25.3 24.5 3% 6.5 5.7 14%
Total NGR(1) 521.7 488.0 7% 437.4 404.9 8% 84.3 83.1 1%
Revenue 521.7 488.0 7% 437.4 404.9 8% 84.3 83.1 1%
Gross Profit 304.3 278.9 9% 251.1 226.7 11% 53.2 52.2 2%
Contribution(9) 273.8 249.1 10% 222.9 199.5 12% 50.9 49.6 3%
Contribution(9) Margin 52.5% 51.0% 1.5pp 51.0% 49.3% 1.7pp 60.4% 59.7% 0.7pp
Operating costs (90.1) (78.2) (15%) (46.5) (38.3) (21%) (43.6) (39.9) (9%)
Underlying EBITDA(4) 183.7 170.9 7% 176.4 161.2 9% 7.3 9.7 (25%)
Underlying depreciation and amortisation(13) (20.0) (18.0) (11%) (14.8) (10.3) (44%) (5.2) (7.7) 32%
Underlying operating profit(13) 163.7 152.9 7% 161.6 150.9 7% 2.1 2.0 5%
Results(11):
CEE NGR(1) for 2025 was +7% (+5%cc(3)) reflecting continued strong growth
despite tough competitive markets, particularly in Poland.
NGR(1) in Croatia was +7%cc(3) ahead of 2024 with our SuperSport brand
continuing to perform well and maintaining the leading position in the market.
Online NGR(1) was +9%cc(3) ahead with Retail NGR(1) -5%cc(3) as the business
prepares for new regulation in Retail in 2026, restricting shop locations.
NGR(1) in Poland was +3%cc(3) ahead of 2024 with Online NGR(1) +3%cc(3) and
Retail NGR(1) +4%cc(3). Despite the increasingly competitive landscape in
Poland, we have maintained market leadership and growth in the year.
Gross profit of £304.3m was +9% ahead of 2024. Gross profit margin of 58.3%
was +1.1pp higher than 2024, reflecting the reclass of certain costs to
operating costs from cost of sales. Marketing spend of £30.5m was £0.7m
higher than 2024 , and contribution(10) of £273.8m was +10% ahead of 2024, at
a margin(10) of 52.5%, a +1.5pp improvement over the prior year.
Operating costs were £11.9m higher than 2024 as a result of inflation and a
reclass of certain costs previously included in cost of sales. Resulting
Underlying EBITDA(4) of £183.7m was £12.8m ahead of the prior year, up +7%.
After charging underlying depreciation and amortisation(14) of £20.0m,
underlying operating profit(14) was £163.7m, +£10.8m ahead of 2024.
After separately disclosed items of £164.3m (2024: £243.9m), the operating
loss was £0.6m (2024: loss of £91.0m).
Corporate
Results(11)
2025 2024 Change
Year ended 31 December £m £m %
Underlying EBITDA⁴ (120.3) (113.4) (6)%
Share-based payments (8.5) (3.5) (143)%
Underlying depreciation and amortisation(14) (2.1) (0.9) (133)%
Share of JV income/(loss) 67.2 (111.1) 160%
Underlying operating profit(14) (63.7) (228.9) 72%
Results(11):
Corporate underlying costs(4) of £120.3m were £6.9m higher than the prior
year, reflecting our continued investments in governance and our strong
commitment to regulatory compliance.
BetMGM moved into sustainable profit in 2025, and that is reflected by a
£175.4m increase in our share of the US JV to £66.0m. After share-based
payments and underlying depreciation and amortisation(14) Corporate underlying
operating loss(14) was £63.7m, a decrease of £165.2m vs. the prior year.
After separately disclosed items of £130.6m (2024:£95.0m), the operating
loss of £194.3m (2024:£323.9m) was £129.6m lower than in 2024.
Notes
1 Net Gaming Revenue ("NGR") is defined as Net Revenue before charging for VAT
and Sales Taxes. A full reconciliation of this non-GAAP measure is provided
within the Income statement
2 Non-GAAP measures including the Group's 50% share of BetMGM NGR and underlying
EBITDA are shown to facilitate the understanding of the Group's performance in
comparison to its peers. A reconciliation of these non-GAAP measures is shown
in Financial Results and the use of non-GAAP measures
3 Growth on a constant currency basis is calculated by translating both current
and prior year performance at the 2025 exchange rates
4 Underlying EBITDA is earnings before interest, tax, depreciation and
amortisation, share-based payments and share of JV income and separately
disclosed items
5 Previous guidance of FY25 Underlying EBITDA in the range of £1,100m to
£1,150m provided in 2025 Interim Results (12 August 2025)
6 BetMGM Adjusted Underlying EBITDA is defined as Underlying EBITDA before
parent fees. Parent fees are the operating expense to BetMGM for the
provision of certain licenses and services by the parent entities, MGM and
Entain, and their affiliates
7 Cashflow before working capital, equity dividends, acquisitions and associated
financing
8 As at 4 March 2026, Company compiled consensus for FY26 Group EBITDA of
£1126m (excluding BetMGM parent fees) based on 12 analyst estimates
9 As at 26 November 2025, Entain guided to expectation of mitigating
approximately 25% of annualised incremental impact of increased UK Gambling
taxes (Remote Gaming Duty and General Betting Duty) from implementation
10 Contribution represents gross profit less marketing costs and is a key
performance metric used by the Group
11 2025 results are audited and relate to continuing operations
12 Volume growth adjusts NGR to remove the impact of sports margin fluctuations
(assuming the same sports margin in both years)
13 Like-for-like growth performance excludes the impact of store closures
14 Stated pre separately disclosed items
15 Other includes adjustments for working capital movements relating to
separately disclosed items and the net effects of Italy tax credits
Statutory Performance Review
Results(1)
2025 2024 Change cc(3)
Year ended 31 December £m £m % %
NGR(2) 5,325.4 5,161.9 3% 4%
Revenue 5,259.4 5,089.2 3% 4%
Gross profit 3,200.1 3,118.1 3%
Contribution(4) 2,568.7 2,480.5 4%
Underlying EBITDA(5) 1,160.1 1,088.8 7%
Share-based payments (12.1) (13.3) 9%
Underlying depreciation and amortisation(6) (352.9) (344.7) (2)%
Share of results from joint ventures and associates 66.1 (114.2) 158%
Underlying operating profit(6) 861.2 616.6 40%
Separately disclosed items:
Amortisation of acquired intangibles (258.1) (286.8)
Impairment loss (586.8) (476.4)
Other (excluding finance costs) (210.3) (103.5)
Group operating loss (194.0) (250.1)
Net finance costs (260.5) (273.3)
Net foreign exchange/financial instruments (102.3) 166.0
Loss before tax (556.8) (357.4)
Tax (123.7) (103.6)
Loss after tax (680.5) (461.0)
NGR and Revenue
Group NGR(2) and revenue were +3% ahead of last year and +4% ahead on a
constant currency basis(3), with Online NGR(2) +5% and Retail NGR(2) -1% YoY.
Further details are provided in the Financial Performance Review section.
Operating (loss)/profit
After charging separately disclosed items, Group operating loss for the year
was £194.0m, £56.1m lower than in 2024.
The Group reported underlying operating profit(6) of £861.2m, 40% higher than
2024 (2024: £616.6m) largely due to increased joint venture profits and
increased revenue. Underlying EBITDA(5) was 7% ahead, reflecting the benefits
of Project Romer. Depreciation and amortisation was 2% higher than 2024 driven
by continued investment in product and technology. The Group's share of BetMGM
profits in the year was £66.0m, £175.4m higher than 2024 reflecting BetMGM's
inflection into profitability as strategic initiatives helped drive strong
underlying growth in both iGaming and Online Sports. Analysis of the Group's
performance for the year is detailed in the Financial Performance Review
section.
Financing costs/(income)
( )Net finance costs recorded by the Group for 2025 were £260.5m (2024:
£273.3m).
Net underlying finance costs(6) of £251.7m excluding separately disclosed
items of £8.8m (2024: £9.1m) were £12.5m lower than 2024 primarily driven
by a reduction in interest rates, partly offset by annualisation of increased
Group debt raised in 2024.
Net losses on financial instruments of £102.3m (2024: £166.0m net gains)
were primarily driven by losses on settlement currency swaps, partly offset by
a gain on re-translation of underlying debt items. This loss is offset by a
foreign exchange gain on the translation of assets in overseas subsidiaries
which is recognised in reserves and forms part of the Group's commercial
hedging strategy.
Separately disclosed items
Items separately disclosed before tax for the year amount to £1,064.0m (2024:
£875.8m) driven by £258.1m of amortisation on acquired intangibles (2024:
£286.8m), restructuring program costs, including Project Romer, of £49.4m
(2024: £49.6m) and provision for AUSTRAC of £53.7m (2024: £nil).
The Group has also recorded an impairment charge of £586.8m during the
current year (2024: £476.4m) with impairment recognised against the Group's
businesses in the UK of £487.7m, Belgium of £76.9m, and Republic of Ireland
retail portfolio of £18.3m. Further details are provided in Note 11. There
has also been an impairment of £3.9m relating to the recoverable value of the
FHG business assets in Australia determined as part of the sale process.
In addition, £62.9m has been recorded on movements in fair value of
contingent consideration (2024: £43.3m), relating to discount unwind and
revaluation of contingent consideration and put option values primarily
relating to TAB NZ and SuperSport acquisitions.
In the year the Group also recorded legal and onerous contract costs of
£41.3m (2024: £10.6m) including player claim settlements (see Note 16 for
details), and costs relating to a settlement of historic tax positions.
Additionally costs include a £3.0m loss of disposal of property, plant and
equipment no longer used by the Group (2024: £nil), and £8.8m non-cash
finance costs largely relating to the refinancing of the RCF and term loans
(2024: £9.1m).
2025 2024
Year ended 31 December £m £m
Impairment loss 586.8 476.4
Amortisation of acquired intangibles 258.1 286.8
Restructuring costs 49.4 49.6
Movement in fair value of contingent consideration and put option 62.9 43.3
Finance costs 8.8 9.1
Provision for civil penalty 53.7 -
Legal and onerous contract provisions 41.3 10.6
Loss on disposal of property, plant and equipment 3.0 -
Total 1,064.0 875.8
(Loss)/profit before tax
The Group's loss before tax of £556.8m has increased by £199.4m from 2024
primarily as a result of the increase of one-off costs included in separately
disclosed items and an adverse swing on foreign exchange gains/losses.
Group profit before separately disclosed items and tax(6) was £507.2m (2024:
£518.4m), a decrease compared to the prior year of £11.2m with growth in
underlying operating profit(6) offset by net losses on financial instruments
discussed above.
Taxation
The tax charge for the year was £123.7m (2024: £103.6m), reflecting an
underlying effective tax rate pre-share of BetMGM results and foreign exchange
gains/(losses) on external debt of 29.4% (2024: 25.1%), after a tax credit on
separately disclosed items of £27.9m (2024: £35.3m). The increase
year-on-year of £20.1m is the result of geographical changes in profit mix,
notably including increases due to the onshoring of the Brazil business from 1
January 2025, continued increases in domestic tax rates, and increases in
excess interest costs for which no tax credit is available.
Cashflow
Year ended 31 December 2025 2024
£m £m
Cash generated from operations 904.4 976.2
Income taxes paid (112.7) (142.0)
Net finance expense paid (237.5) (254.9)
Net cash generated from operating activities 554.2 579.3
Cash flows from investing activities:
Dividends received from joint ventures 102.2 -
Dividends received from associates 0.4 1.4
Net capital expenditure (338.4) (298.1)
Investment in joint ventures - (19.8)
Purchase of associate and other investments (0.1) -
Net cash used in investing activities (235.9) (316.5)
Cash flows from financing activities:
Net proceeds from borrowings 591.9 591.7
Repayment of borrowings (459.4) (315.9)
Net settlement of financial instruments and other financial liabilities (260.2) (138.8)
Payment of lease liabilities (76.8) (68.0)
Dividends paid to shareholders (122.1) (116.3)
Dividends paid to non-controlling interests (48.9) (12.5)
Disposal of investment - 5.2
Payments to non-controlling interests - (4.1)
Net cash used in financing activities (375.5) (58.7)
Effect of changes in foreign exchange rates 22.4 (15.8)
Net (decrease)/increase in cash (34.8) 188.3
During the year, the Group had a net cash outflow of £34.8m (2024: inflow of
£188.3m).
Net cash generated by operations was £904.4m (2024: £976.2m) including
£1,160.1m of Underlying EBITDA(5) (2024: £1,088.8m) offset by a working
capital outflow of £48.4m (2024: £9.1m outflow), and separately disclosed
items that are reported in operating activities of £207.3m (2024: £103.5m)
excluding items charged to depreciation, amortisation, impairment and loss on
disposal of property, plant and equipment. Included within working capital is
a £25.2m outflow for balances held with payment service providers, deposits
and customer funds, which are net debt neutral (2024: £67.0m outflow).
During the year, £112.7m was paid out in relation to corporate taxes (2024:
£142.0m), with the year-on-year reduction largely relating to timing
differences. A further £237.5m was paid out in interest (2024: £254.9m),
with refinancing activity driving the benefit compared to the prior year.
Net cash used in investing activities for the year was £235.9m (2024:
£316.5m) and includes net investment in capital expenditure of £338.4m
(2024: £298.1m).These outflows were partially offset by dividends received
from joint ventures of £102.2m (2024: £nil) and associates of £0.4m (2024:
£1.4m). In the prior year an additional £19.8m was invested in BetMGM.
Net cash used in financing activities for the year was £375.5m (2024:
£58.7m). £591.9m was raised through new financing facilities (2024:
£591.7m) which were used, in part, to repay £459.4m of debt (2024:
£315.9m). £260.2m was paid on settlement of other financial instruments and
liabilities (2024: £138.8m), primarily relating to swap settlements and
contingent consideration on previous acquisitions including New Zealand. Lease
payments of £76.8m (2024: £68.0m) including those on non-operational shops,
were made in the year.
During the year, the Group paid £122.1m in equity dividends (2024: £116.3m)
and £48.9m in dividends to the non-controlling interest in Entain CEE (2024:
£12.5m). In the prior year there was also £5.2m received on disposal of an
investment offset by £4.1m paid to non-controlling interests.
Net debt
Par value Issue costs/Premium Total
£m £m £m
Term loans (3,721.5) 51.3 (3,670.2)
Interest accrual (2.3) - (2.3)
(3,723.8) 51.3 (3,672.5)
Cash 554.1
Accounting net debt (3,118.4)
Cash held on behalf of customers (197.0)
Fair value of swaps held against debt instruments (141.8)
Other debt related items(1) 132.7
Lease liabilities (319.7)
Adjusted net debt (3,644.2)
1. Other debt related items include
balances held with payment service providers, deposits and other similar
items.
As at 31 December 2025, adjusted net debt(7) was £3,644.2m and represented
an adjusted net debt(7) to Underlying EBITDA(5) ratio of 3.1x. The Group had
drawn down £160.0m on the revolving credit facility at 31 December 2025
(2024: £nil).
Refinancing
On 18 March 2025, the Group refinanced its revolving credit facility,
extending its latest maturity from July 2026 to March 2030. The facility was
also increased and now has total commitments (including letters of credit) of
£645m. The facility is subject to a springing maturity, to three months prior
to the earliest term loan maturity, if at least a 25% stub of the
shortest-dated term loan remains outstanding. At 31 December 2025, the
facility's effective maturity date was 30 March 2028.
On 31 July 2025, the Group announced the refinancing of its existing $1,100m
and $2,218m term loans. The existing $1,100m term loan margin reduced by 35bps
to 225bps, which was allocated at an original issue discount ("OID") of 99.875
and the maturity date has been extended from 29 March 2027 to 31 July 2032.
The existing $2,218m term loan margin reduced by 50bps to 225bps, which was
allocated at par and the maturity date remains 31 October 2029.
On 7 August 2025, the Group signed a 2 year £500m bridge facility solely for
the purposes of acquiring some or all of the Entain CEE minority investment
should the need arise. The facility is available to draw for 12 months from
signing, extendable by 3 months. If drawn, it has a 9 month term.
On 13 November 2025, the Group announced the pricing of €500m senior
secured notes due 30 November 2031 at a fixed coupon of 4.875%, which were
issued on 24 November 2025, and used to immediately repay €500m of the
Group's existing €1,265m Term Loan B facility due 30 June 2028.
Going Concern
In adopting the going concern basis of preparation in the financial
statements, the Directors have undertaken a robust assessment of the Group's
ability to continue in operational existence for a period of at least 12
months from the date of approval of these financial statements (the "going
concern assessment period").
The assessment has considered the Group's current trading performance,
financial position and principal risks and uncertainties. For the year ended
31 December 2025, the Group reported a statutory loss after tax of £681m.
This loss primarily reflects non-cash impairment charges, fair value movements
and amortisation of acquired intangibles, and does not impact the Group's
underlying cash generation. The Directors have considered the nature of this
loss as part of their going concern assessment.
As at 31 December 2025, the Group had gross borrowings of £3,673m and
adjusted net debt of £3,644m. The Group's debt facilities comprise term
loans, senior secured notes and a revolving credit facility, with maturities
extending to 2032. During the going concern assessment period, no material
debt maturities arise. The Group had available liquidity of £964m at
31 December 2025, comprising cash and cash equivalents of £554m (which
includes £204m restricted in respect of customers) and undrawn committed
facilities of £410m.
The Directors have reviewed detailed financial projections covering the going
concern assessment period, based on the Board-approved budget for 2026 and the
three-year strategic plan. These forecasts incorporate assumptions regarding
revenue, operating margins, working capital and capital expenditure, taking
account of current trading performance.
As part of their assessment, the Directors have considered severe but
plausible downside scenarios, consistent with those described in the Viability
Statement. These scenarios include, impact to our technology platform,
exposure to litigations, further gaming duties and licensing conditions and
severe data privacy or cybersecurity incidents. Under these downside
scenarios, appropriate mitigating actions within management's control have
been modelled, including reductions in discretionary expenditure and capital
investment.
The Directors have also assessed compliance with the financial covenants
associated with the Group's borrowing facilities throughout the going concern
assessment period. Under both the base case and severe but plausible downside
scenarios, the Group maintains adequate liquidity and covenant headroom.
Having considered the Group's forecast cash flows, available liquidity, debt
maturity profile and covenant compliance, the Directors have a reasonable
expectation that the Group and the Company will have adequate resources to
continue in operational existence for the going concern assessment period.
Accordingly, the Directors consider it appropriate to adopt the going concern
basis of preparation in the financial statements. The Directors do not
consider that there are any material uncertainties related to events or
conditions that may cast significant doubt on the Group's or the Company's
ability to continue as a going concern.
Notes
1 2025 and 2024 statutory results are audited, with the
tables presented relating to continuing operations and including both
statutory and non-statutory measures.
2 Net Gaming Revenue ("NGR") is defined as Net Revenue before
charging for VAT and Sales Taxes. A full reconciliation of this non-GAAP
measure is provided within the Income Statement
3 Growth on a constant currency basis is calculated by
translating both current and prior year performance at the 2025 exchange rates
4 Contribution represents gross profit less marketing costs
and is a key performance metric used by the Group.
5 Underlying EBITDA is earnings before interest, tax,
depreciation and amortisation, share-based payments and share of JV income and
separately disclosed items.
6 Stated pre separately disclosed items.
7 Adjusted net debt excludes the DPA settlement. Leverage
also excludes any benefit from future BetMGM EBITDA or the payments due to
acquire the non-controlling interests in Entain CEE.
ADDITIONAL INFORMATION
Online
Results(4)
Year ended 31 December 2025 2024 Change CC(5)
£m £m % %
Sports Wagers 14,635.4 14,392.6 2% 4%
Sports Margin 14.4% 14.7% (0.3pp) (0.3pp)
Sports NGR(1) 1,731.5 1,753.8 (1%) 1%
Gaming NGR(1) 2,010.0 1,826.1 10% 11%
Other NGR(1) 157.4 140.4 12% 14%
Total NGR(1) 3,898.9 3,720.3 5% 6%
EU VAT/GST (60.7) (67.3) 10% 5%
Revenue 3,838.2 3,653.0 5% 6%
Gross Profit 2,260.8 2,174.0 4%
Contribution(2) 1,642.9 1,551.9 6%
Contribution(2) Margin 42.1% 41.7% 0.4pp
Operating costs (639.3) (610.9) (5%)
Underlying EBITDA(3) 1,003.6 941.0 7%
Share-based payments (3.6) (8.0) 55%
Underlying depreciation and amortisation(3) (220.5) (208.1) (6%)
Share of JV income/(loss) (1.1) (3.1) 65%
Underlying operating profit(3) 778.4 721.8 8%
Retail
The Retail business is made up of our Retail estates in the UK, Italy,
Belgium, Croatia, New Zealand and Republic of Ireland.
Results(4)
Year ended 31 December 2025 2024 Change CC(5)
£m £m % %
Sports Wagers 4,485.4 4,492.8 (0%) (0.1%)
Sports Margin 19.7% 19.5% 0.2pp 0.2pp
Sports NGR(1) 869.7 864.4 1% 0.6%
Gaming NGR(1) 542.3 557.1 (3%) (2.7%)
Other NGR(1) 39.3 40.0 (2%) (0.9%)
Total NGR(1) 1,451.3 1,461.5 (1%) (0.7%)
EU VAT/GST (5.3) (5.4) 2% (4.8%)
Revenue 1,446.0 1,456.1 (1%) (0.7%)
Gross Profit 939.3 944.1 (1%)
Contribution(2) 925.8 928.6 (0%)
Contribution(2) Margin 63.8% 63.5% 0.3pp
Operating costs (649.0) (667.4) 3%
Underlying EBITDA(3) 276.8 261.2 6%
Share-based payments - (1.8) 100%
Underlying depreciation and amortisation(3) (130.3) (135.7) 4%
Share of JV income/(loss) - - 0%
Underlying operating profit(3) 146.5 123.7 18%
Notes
1 Net Gaming Revenue (“NGR”) is defined as Net Revenue before charging for
VAT and Sales Taxes. A full reconciliation of this non-GAAP measure is
provided within the Income statement
2 Contribution represents gross profit less marketing costs and is a key
performance metric used by the Group
3 Underlying EBITDA is earnings before interest, tax, depreciation and
amortisation, share-based payments and share of JV income and separately
disclosed items
4 2025 results are audited and relate to continuing operations
5 Growth on a constant currency basis is calculated by translating both current
and prior year performance at the 2025 exchange rates
CONSOLIDATED INCOME STATEMENT
2025 2024
Underlying items Separately disclosed items (Note 6) Total Underlying items Separately disclosed items (Note 6) Total
Notes £m £m £m £m £m £m
Net Gaming Revenue 5,325.4 - 5,325.4 5,161.9 - 5,161.9
VAT/GST (66.0) - (66.0) (72.7) - (72.7)
Revenue 5 5,259.4 - 5,259.4 5,089.2 - 5,089.2
Cost of sales (2,059.3) - (2,059.3) (1,971.1) - (1,971.1)
Gross profit 3,200.1 - 3,200.1 3,118.1 - 3,118.1
Administrative costs (2,405.0) (1,055.2) (3,460.2) (2,387.3) (866.7) (3,254.0)
Contribution(1) 2,568.7 - 2,568.7 2,480.5 - 2,480.5
Administrative costs excluding marketing (1,773.6) (1,055.2) (2,828.8) (1,749.7) (866.7) (2,616.4)
Group operating profit/(loss) before share of results from joint ventures and 795.1 (1,055.2) (260.1) 730.8 (866.7) (135.9)
associates
Share of results from joint venture and associates 66.1 - 66.1 (114.2) - (114.2)
Group operating profit/(loss) 861.2 (1,055.2) (194.0) 616.6 (866.7) (250.1)
Finance expense 7 (264.5) (8.8) (273.3) (280.3) (9.1) (289.4)
Finance income 7 12.8 - 12.8 16.1 - 16.1
(Losses)/gains arising from change in fair value of financial instruments 7 (216.5) - (216.5) 145.0 - 145.0
Gains arising from foreign exchange on debt instruments 7 114.2 - 114.2 21.0 - 21.0
Profit/(loss) before tax 507.2 (1,064.0) (556.8) 518.4 (875.8) (357.4)
Income tax (151.6) 27.9 (123.7) (138.9) 35.3 (103.6)
Profit/(loss) for the year 355.6 (1,036.1) (680.5) 379.5 (840.5) (461.0)
Attributable to:
Equity holders of the parent 308.0 (974.7) (666.7) 335.6 (788.3) (452.7)
Non-controlling interests 47.6 (61.4) (13.8) 43.9 (52.2) (8.3)
355.6 (1,036.1) (680.5) 379.5 (840.5) (461.0)
Earnings per share
From profit/(loss) for the year 9 62.4p² (104.3) p 30.2p² (70.8) p
Diluted earnings per share
From profit/(loss) for the year 9 61.8p² (104.3) p 29.9p² (70.8) p
Memo
EBITDA(3) 1,160.1 (210.3) 949.8 1,088.8 (103.5) 985.3
Share-based payments (12.1) - (12.1) (13.3) - (13.3)
Depreciation, amortisation and impairment (352.9) (844.9) (1,197.8) (344.7) (763.2) (1,107.9)
Share of results from joint venture and associates 66.1 - 66.1 (114.2) - (114.2)
Group operating profit/(loss) 861.2 (1,055.2) (194.0) 616.6 (866.7) (250.1)
1 Contribution represents gross profit less marketing costs and is a key
performance metric used by the Group.
2 The calculation of underlying earnings per share has been adjusted for
separately disclosed items, and for the removal of foreign exchange volatility
arising on financial instruments as it assists in understanding the underlying
performance of the Group. See Note 9 for further details.
3 EBITDA is earnings before interest, tax, depreciation and amortisation,
share-based payments and share of JV income.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2025 2024
£m £m
Loss for the year (680.5) (461.0)
Other comprehensive (expense)/income:
Items that may be reclassified to profit or loss:
Currency differences on translation of foreign operations 150.3 (189.4)
Total items that may be reclassified to profit or loss 150.3 (189.4)
Items that will not be reclassified to profit or loss:
Re-measurement of defined benefit pension scheme (0.1) (8.1)
Tax on re-measurement of defined benefit pension scheme - 4.8
Revaluation loss of other investments (0.1) -
Total items that will not be classified to profit and loss (0.2) (3.3)
Other comprehensive income/(expense) for the year, net of tax 150.1 (192.7)
Total comprehensive expense for the year (530.4) (653.7)
Attributable to:
Equity holders of the parent (544.9) (621.4)
Non-controlling interests 14.5 (32.3)
CONSOLIDATED BALANCE SHEET
2025 2024
Notes £m £m
Assets
Non-current assets
Goodwill 10 3,743.8 4,138.9
Intangible assets 10 3,256.0 3,519.4
Property, plant and equipment 12 573.7 573.8
Interest in associates and other investments 34.9 32.6
Trade and other receivables 30.0 27.1
Derivative financial instruments - 19.1
Deferred tax assets 440.6 476.1
Retirement benefit asset 56.5 55.1
8,135.5 8,842.1
Current assets
Trade and other receivables 613.7 563.8
Income and other taxes recoverable 90.4 78.9
Derivative financial instruments 2.6 67.3
Cash and cash equivalents 14 554.1 588.9
1,260.8 1,298.9
Total assets 9,396.3 10,141.0
Liabilities
Current liabilities
Trade and other payables (1,154.5) (1,120.6)
Balances with customers 14 (197.0) (196.6)
Lease liabilities (70.5) (77.2)
Interest-bearing loans and borrowings 14 (25.4) (25.3)
Corporate tax liabilities (116.2) (76.6)
Provisions 13 (37.7) (34.8)
Derivative financial instruments (138.0) (8.5)
Deferred and contingent consideration and other financial liabilities (705.8) (215.1)
(2,445.1) (1,754.7)
Non-current liabilities
Trade and other payables (139.3) (286.4)
Interest-bearing loans and borrowings 14 (3,647.1) (3,605.9)
Lease liabilities (249.2) (247.3)
Deferred tax liabilities (680.4) (738.7)
Provisions 13 (61.5) (2.9)
Derivative financial instruments (6.4) (11.1)
Deferred and contingent consideration and other financial liabilities (838.1) (1,474.6)
(5,622.0) (6,366.9)
Total liabilities (8,067.1) (8,121.6)
Net assets 1,329.2 2,019.4
Equity
Issued share capital 5.2 5.2
Share premium 1,796.7 1,796.7
Merger reserve 2,527.4 2,527.4
Translation reserve 107.0 (15.0)
Retained earnings (3,546.4) (2,768.6)
Equity shareholders' funds 889.9 1,545.7
Non-controlling interest 439.3 473.7
Total shareholders' equity 1,329.2 2,019.4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Issued Share Capital Share premium Merger reserve Translation reserve Retained earnings Equity shareholders' funds Non-controlling interests Total shareholders' equity
£m £m £m £m £m £m £m £m
At 1 January 2024 5.2 1,796.7 2,527.4 150.4 (2,211.7) 2,268.0 524.7 2,792.7
Loss for the year - - - - (452.7) (452.7) (8.3) (461.0)
Other comprehensive expense - - - (165.4) (3.3) (168.7) (24.0) (192.7)
Total comprehensive expense - - - (165.4) (456.0) (621.4) (32.3) (653.7)
Share-based payments charge - - - - 11.9 11.9 - 11.9
Non-controlling interests created - - - - - - 1.4 1.4
Purchase of non-controlling interests - - - - 3.5 3.5 (7.6) (4.1)
Equity dividends (Note 8) - - - - (116.3) (116.3) (12.5) (128.8)
At 31 December 2024 5.2 1,796.7 2,527.4 (15.0) (2,768.6) 1,545.7 473.7 2,019.4
As at 1 January 2025 5.2 1,796.7 2,527.4 (15.0) (2,768.6) 1,545.7 473.7 2,019.4
Loss for the year - - - - (666.7) (666.7) (13.8) (680.5)
Other comprehensive income/(expense) - - - 122.0 (0.2) 121.8 28.3 150.1
Total comprehensive income/(expense) - - - 122.0 (666.9) (544.9) 14.5 (530.4)
Share-based payments charge - - - - 11.2 11.2 - 11.2
Equity dividends (Note 8) - - - - (122.1) (122.1) (48.9) (171.0)
At 31 December 2025 5.2 1,796.7 2,527.4 107.0 (3,546.4) 889.9 439.3 1,329.2
Share capital - represents the nominal value of shares allotted, called-up and
fully paid.
Share premium - represents the amount subscribed for share capital in excess
of nominal value.
Merger reserve - represents the share premium recognised on historic
transactions which attracted merger relief under section 612 of the Companies
Act 2006.
Foreign currency translation reserve - represents exchange differences arising
from the translations of all Group entities that have functional currency
different from Pounds Sterling.
Retained earnings - represents the cumulative net gains and losses recognised
in the Consolidated Statement of Comprehensive Income and other transactions
with equity shareholders.
Non-controlling interests - represents the minority interests of other
shareholders in the net assets of consolidated subsidiaries.
CONSOLIDATED STATEMENT OF CASHFLOWS
2025 2024
Note £m £m
Cash generated from operations 15 904.4 976.2
Income taxes paid (112.7) (142.0)
Net finance expense paid (237.5) (254.9)
Net cash generated from operating activities 554.2 579.3
Cash flows from investing activities:
Dividends received from associates 0.4 1.4
Dividends received from joint ventures 102.2 -
Purchase of intangible assets (232.6) (203.9)
Purchase of property, plant and equipment (106.9) (94.4)
Proceeds from the sale of property, plant and equipment including disposal of 1.1 0.2
shops
Purchase of associate and other investments (0.1) -
Investment in joint ventures - (19.8)
Net cash used in investing activities (235.9) (316.5)
Cash flows from financing activities:
Net proceeds from borrowings 591.9 591.7
Repayment of borrowings (459.4) (315.9)
Disposal of investment - 5.2
Settlement of derivative financial instruments (72.6) (37.5)
Settlement of other financial liabilities (187.6) (101.3)
Payment of lease liabilities (76.8) (68.0)
Dividends paid to shareholders (122.1) (116.3)
Dividends paid to non-controlling interests (48.9) (12.5)
Payments to non-controlling interests - (4.1)
Net cash used in financing activities (375.5) (58.7)
Net (decrease)/increase in cash and cash equivalents (57.2) 204.1
Effect of changes in foreign exchange rates 22.4 (15.8)
Cash and cash equivalents at beginning of the year 588.9 400.6
Cash and cash equivalents at end of the year 554.1 588.9
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 Corporate information
Entain plc ("the Company") is a company incorporated and domiciled in the Isle
of Man on 5 January 2010 whose shares are traded publicly on the London Stock
Exchange. The principal activities of the Company and its subsidiaries ("the
Group") are described in the Strategic Report. The consolidated financial
statements of the Group for the year ended 31 December 2025 were authorised
for issue in accordance with a resolution of the Directors on 5 March 2026.
The nature of the Group's operations and its principal activities are set out
in Note 5.
2 Basis of preparation
The consolidated financial statements of the Group have been prepared in
accordance with International Financial Reporting Standards adopted pursuant
to Regulation (EC) No 1606/2002 as it applies to the European Union and in
accordance with the requirements of the Isle of Man Companies Act 2006
applicable to companies reporting under IFRSs. The accounting policies set out
in this section as detailed have been applied consistently year-on-year other
than for the changes in accounting policies set out in Note 3.
The consolidated financial statements are presented in Pounds Sterling (£).
All values are in millions (£m) rounded to one decimal place except where
otherwise indicated. The separately disclosed items have been included within
the appropriate classifications in the consolidated income statement. Further
details are given in Note 6.
Going concern
In adopting the going concern basis of preparation in the financial
statements, the Directors have undertaken a robust assessment of the Group's
ability to continue in operational existence for a period of at least 12
months from the date of approval of these financial statements (the "going
concern assessment period").
The assessment has considered the Group's current trading performance,
financial position and principal risks and uncertainties. For the year ended
31 December 2025, the Group reported a statutory loss after tax of £681
million. This loss primarily reflects non-cash impairment charges, fair value
movements and amortisation of acquired intangibles, and does not impact the
Group's underlying cash generation. The Directors have considered the nature
of this loss as part of their going concern assessment.
As at 31 December 2025, the Group had gross borrowings of £3,673m and
adjusted net debt of £3,644m. The Group's debt facilities comprise term
loans, senior secured notes and a revolving credit facility, with maturities
extending to 2032. During the going concern assessment period, no material
debt maturities arise. The Group had available liquidity of £964m at
31 December 2025, comprising cash and cash equivalents of £554m (which
includes £204m restricted in respect of customers) and undrawn committed
facilities of £410m.
The Directors have reviewed detailed financial projections covering the going
concern assessment period, based on the Board-approved budget for 2026 and the
three-year strategic plan. These forecasts incorporate assumptions regarding
revenue, operating margins, working capital and capital expenditure, taking
account of current trading performance.
As part of their assessment, the Directors have considered severe but
plausible downside scenarios, consistent with those described in the Viability
Statement. These scenarios include, impact to our technology platform,
exposure to litigations, further gaming duties and licensing conditions and
severe data privacy or cybersecurity incidents. Under these downside
scenarios, appropriate mitigating actions within management's control have
been modelled, including reductions in discretionary expenditure and capital
investment.
The Directors have also assessed compliance with the financial covenants
associated with the Group's borrowing facilities throughout the going concern
assessment period. Under both the base case and severe but plausible downside
scenarios, the Group maintains adequate liquidity and covenant headroom.
Having considered the Group's forecast cash flows, available liquidity, debt
maturity profile and covenant compliance, the Directors have a reasonable
expectation that the Group and the Company will have adequate resources to
continue in operational existence for the going concern assessment period.
Accordingly, the Directors consider it appropriate to adopt the going concern
basis of preparation in the financial statements. The Directors do not
consider that there are any material uncertainties related to events or
conditions that may cast significant doubt on the Group's or the Company's
ability to continue as a going concern.
3 Changes in accounting policies
From 1 January 2025 the Group has applied, for the first time, certain
standards, interpretations and amendments. The adoption of the following
standards and amendments to standards did not have a material impact on the
current period or any prior period upon transition:
• IAS 21 The Effects of Changes in Foreign Exchange Rates, Lack of
Exchangeability.
4 Summary of significant accounting policies
4.1 Basis of consolidation
The consolidated financial statements comprise the financial statements of the
Group at 31 December each year. The consolidation has been performed using the
results to 31 December for all subsidiaries, using consistent accounting
policies. With the exception of a small number of immaterial subsidiaries, the
financial statements of those subsidiaries are prepared to 31 December.
Control is achieved where the Company is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability to affect
these returns through its power over the investee.
All intragroup transactions, balances, income and expenses are eliminated on
consolidation.
Subsidiaries are consolidated, using the acquisition method of accounting,
from the date on which control is transferred to the Group and cease to be
consolidated from the date on which control is transferred from the Group. On
acquisition, the assets and liabilities and contingent liabilities of a
subsidiary are measured at fair value at the date of acquisition. Any excess
of the cost of acquisition over the fair values of the separately identifiable
net assets acquired is recognised as goodwill. Where necessary, adjustments
are made to the financial statements of subsidiaries to bring the accounting
policies used in line with those used by the Group.
4.2 Critical accounting estimates and judgements
The preparation of financial information requires the use of assumptions,
estimates and judgements about future conditions. Use of available information
and application of judgement are inherent in the formation of estimates.
Actual results in the future may differ from those reported.
Judgements
Management believes that the areas where judgement has been applied are:
• separately disclosed items (Note 6); and
• contingent liabilities (Note 16)
Separately disclosed items
To assist in understanding the underlying performance of the Group, management
applies judgement to identify those items that are deemed to warrant separate
disclosure due to either their nature or size. Whilst not limited to, the
following items of pre-tax income and expense are generally disclosed
separately:
• amortisation of acquired intangibles resulting from IFRS 3 "Business
Combinations" fair value exercises;
• profits or losses on disposal, closure, or impairment of non-current
assets or businesses;
• corporate transaction and restructuring costs;
• certain legal, regulatory and tax litigation;
• changes in the fair value of contingent consideration; and
• the related tax effect of these items.
Any other non-recurring items are considered individually for classification
as separately disclosed by virtue of their nature or size.
The separate disclosure of these items allows a clearer understanding of the
trading performance on a consistent and comparable basis, together with an
understanding of the effect of non-recurring or large individual transactions
upon the overall profitability of the Group.
The separately disclosed items have been included within the appropriate
classifications in the consolidated income statement.
During 2025 the Group separately disclosed a net charge on continuing
operations before tax of £1,064.0m. Further details are given in Note 6.
Contingent liabilities
In the assessment of contingent liabilities, certain judgements are required
to assess whether disclosure or provision is needed. If the criteria for
recognising a provision are not met, but the outflow of resources with
economic benefits is not remote, such obligations are disclosed in the notes
to the consolidated financial statements as contingent liabilities (see Note
16). Contingent liabilities are only recognised as a provision if the
obligations are more certain, i.e. the outflow of resources with economic
benefits has become probable and their amount can be reliably estimated.
Estimates
Included within the financial statements are a number of areas where
estimation is required.
Management believes that the areas most notable where estimates have been
applied are:
• contingent consideration;
• impairment (Note 11); and
• provisions (Note 13).
Contingent consideration
In the recognition of fair value of contingent consideration in business
combinations and reassessment at each reporting date, management uses
estimates in the inputs and assumptions based on the latest financial
forecasts and other relevant information for the businesses acquired.
Specifically, for the TAB NZ acquisition, the key estimates the Group has used
are the post-tax discount rate and projected profit growth rates for the
forecast period.
Impairment
On acquisition, any goodwill acquired is allocated to cash-generating units
for the purpose of impairment testing. Where goodwill forms part of a
cash-generating unit and part of the operation within that unit is disposed
of, the goodwill associated with the disposal is included in the carrying
amount of the assets when determining the gain or loss on disposal.
An impairment review is performed for goodwill and other indefinite life
assets on at least an annual basis. For all other non-current assets an
impairment review is performed where there are indicators of impairment. This
requires an estimation of the recoverable amount which is the higher of an
asset's fair value less costs to sell and its value in use. Estimating a value
in use amount requires management to make an estimate of the expected future
cash flows from each cash-generating unit and to discount cash flows by a
suitable discount rate in order to calculate the present value of those
cashflows. Estimating an asset's fair value less costs to sell is determined
using future cash flow and profit projections as well as industry observed
multiples and publicly observed share prices for similar betting and gaming
companies. See Note 11 for details on sensitivity analysis performed around
these estimates.
Impairment losses are recognised in the consolidated income statement and
during the current year, the Group has recognised an impairment charge of
£586.8m primarily against the Group's UK, Belgium and Republic of Ireland
businesses. See Note 11 for further details.
Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation.
Provisions are measured at the Directors' best estimate of the expenditure
required to settle the obligation at the balance sheet date and are discounted
to present value where the effect is material using a pre-tax rate that
reflects current market assessments of the time value of money and the risks
specific to the liability. The unwinding of the discount is recognised as a
finance expense.
Specifically, the key estimate for the Group relate to the expected civil
penalty liability from the AUSTRAC proceedings. See Note 13 for further
details.
4.3 Other accounting policies
Business combinations
For business combinations, the Group estimates the fair value of the
consideration transferred, which can include assumptions about the future
business performance of the business acquired and an appropriate discount rate
to determine the fair value of any contingent consideration.
The Group then estimates the fair value of assets acquired and liabilities
assumed in the business combination. The area of most notable estimation
within the fair value exercise relates to separately identifiable intangible
assets including brands, customer lists and licences. These estimates also
require inputs and assumptions to be applied within the relief from royalty
calculation of fair values with the more significant assumptions relating to
future earnings, customer attrition rates and discount rates. The Group
engages external experts to support the valuation process, where appropriate.
IFRS 3 "Business Combinations" allows the Group to recognise provisional fair
values if the initial accounting for the business combination is incomplete.
The fair value of contingent consideration recognised in business combinations
is reassessed at each reporting date, using updated inputs and assumptions
based on the latest financial forecasts and other relevant information for the
businesses acquired. Fair value movements and the unwinding of the discounting
is recognised within the income statement as a separately disclosed item. See
Note 6 for further details.
Goodwill on acquisition is initially measured at cost, being the excess of the
cost of the business combination over the Group's interest in the net fair
value of the separately identifiable assets, liabilities and contingent
liabilities at the date of acquisition in accordance with IFRS 3 Business
Combinations. Goodwill is not amortised but reviewed for impairment at the
first reporting period after acquisition and then annually thereafter. As such
it is stated at cost less any provision for impairment of value. Any
impairment is recognised immediately in the consolidated income statement and
is not subsequently reversed.
On acquisition, any goodwill acquired is allocated to cash-generating units
for the purpose of impairment testing. Where goodwill forms part of a
cash-generating unit and part of the operation within that unit is disposed
of, the goodwill associated with the disposal is included in the carrying
amount of the assets when determining the gain or loss on disposal. On
acquisition any non-controlling interests where put options are in place are
recognised using the present access method where the Group assesses that the
non-controlling shareholder has present access to the returns associated with
their equity interests.
"Put" options over the equity of subsidiary companies
The potential cash payments related to put options issued by the Group over
the equity of subsidiary companies are accounted for as financial liabilities.
The amounts that may become payable under the option on exercise are initially
recognised at the present value of the expected gross obligation with the
corresponding entry being recognised in retained earnings. Such options are
subsequently measured using the effective interest method, in order to accrete
the liability up to the amount payable under the option at the date at which
it first becomes exercisable. The present value of the expected gross
obligation is reassessed at the end of each reporting period and any changes
are recorded in the income statement. In the event that an option expires
unexercised, the liability is derecognised with a corresponding adjustment to
retained earnings.
Intangible assets
Intangible assets acquired separately are capitalised at cost and those
acquired as part of a business combination are capitalised separately from
goodwill. The costs relating to internally generated intangible assets,
principally software costs, are capitalised if the criteria for recognition as
assets are met. Other expenditure is charged in the year in which the
expenditure is incurred. Following initial recognition, intangible assets are
carried at cost less any accumulated amortisation and any accumulated
impairment losses.
The useful lives of these intangible assets are assessed to be either finite
or indefinite. Indefinite lived assets are not amortised and are subject to an
annual impairment review from the year of acquisition. Where amortisation is
charged on assets with finite lives, this expense is taken to the consolidated
income statement through the "operating expenses, depreciation and
amortisation" line item.
The useful lives applied to the Group's intangible assets are as follows:
Exclusive New Zealand licence 25-year duration of licence
Other licences Lower of 15 years, or duration of licence
Software - purchased & internally capitalised costs 2-15 years
Trademarks & brand names 10-25 years, or indefinite life
Customer relationships 3-15 years
The useful lives of all intangible assets are reviewed at each financial
period end. Impairment testing is performed annually for intangible assets
which are not subject to systematic amortisation and where an indicator of
impairment exists for all other intangible assets.
An intangible asset is derecognised on disposal, with any gain or loss arising
(calculated as the difference between the net disposal proceeds and the
carrying amount of the item) included in the consolidated income statement in
the year of disposal.
Pensions and other post-employment benefits
The Group's defined benefit pension plan holds assets separately from the
Group. The pension cost relating to the plan is assessed in accordance with
the advice of independent qualified actuaries using the projected unit credit
method.
Actuarial gains or losses are recognised in the consolidated statement of
comprehensive income in the period in which they arise.
Any past service cost is recognised immediately. The retirement benefit asset
recognised in the balance sheet represents the fair value of scheme assets
less the value of the defined benefit obligations.
There is a degree of estimation involved in predicting the ultimate benefits
payable under defined benefit pension arrangements. The pension scheme
liabilities are determined using actuarial valuations. The actuarial valuation
involves making assumptions about discount rates, mortality rates and future
pension increases. Due to the long-term nature of this plan, such estimates
are subject to uncertainty.
In making these estimates and assumptions, management considers advice
provided by external advisers, such as actuaries. Where actual experience
differs to these estimates, actuarial gains and losses are recognised directly
in other comprehensive income. The Gala Coral Pension Plan has a net asset
position when measured on an IAS 19 basis. Judgement is applied, based on
legal, actuarial, and accounting guidance in IFRIC 14, regarding the amounts
of net pension asset that is recognised in the consolidated balance sheet.
Although the Group anticipates that plan surplus will be utilised during the
life of the plan to address member benefits, the Group recognises its pension
surplus in full on the basis that there are no substantive restrictions on the
return of residual plan assets in the event of a winding up of the plan after
all member obligations have been met.
The Group's contributions to defined contribution scheme are charged to the
consolidated income statement in the period to which the contributions relate.
Investments in joint ventures
A joint venture is an entity in which the Group holds an interest on a
long-term basis, and which is jointly controlled by the Group and one or more
other venturers under a contractual agreement.
Joint control exists only when decisions about the relevant activities require
the unanimous consent of the parties that collectively control the
arrangement.
The Group's share of results of joint ventures is included in the Group
consolidated income statement using the equity method of accounting.
Investments in joint ventures are carried in the Group consolidated balance
sheet at cost plus post-acquisition changes in the Group's share of net assets
of the entity less any impairment in value. The carrying value of investments
in joint ventures includes acquired goodwill.
If the Group's share of losses in the joint venture equals or exceeds its
investment in the joint venture, the Group does not recognise further losses,
unless it has obligations to continue to provide financial support to the
joint venture. Similarly if the dividends received from the joint venture are
greater than the cumulative share of gains recognised, the Group shall
recognise this as deferred income.
Investments in associates
Associates are those businesses in which the Group has a long-term interest
and is able to exercise significant influence over the financial and
operational policies but does not have control or joint control over those
policies.
The Group's share of results of associates is included in the Group's
consolidated income statement using the equity method of accounting.
Investments in associates are carried in the Group's consolidated balance
sheet at cost plus post-acquisition changes in the Group's share of net assets
of the entity less any impairment in value. The carrying value of investments
in associates includes acquired goodwill. If the Group's share of losses in
the associate equals or exceed its investments in the associate, the Group
does not recognise further losses, unless it has obligations to continue to
provide financial support to the associate.
Property, plant and equipment
Land is stated at cost less any impairment in value.
Buildings, plant and equipment are stated at cost less accumulated
depreciation and any impairment in value.
Depreciation is applied using the straight-line method to specific classes of
asset to reduce them to their residual value over their estimated useful
economic lives.
Land and building Lower of 50 years, or estimated useful life of the building, or lease.
Indefinite lives are attached to any freehold land held and therefore it is
not depreciated.
Plant and equipment 3-5 years
Fixtures and fittings 3-10 years
Right-of-use ("ROU") assets arising under lease contracts are depreciated over
the lease term (as defined in IFRS 16) being the period to the expiry date of
the lease, unless it is expected that a break clause will be exercised when
the lease term is the period to the date of the break.
The carrying values of property, plant and equipment are reviewed for
impairment where an indicator of impairment exists, being events or changes in
circumstances indicating that the carrying values may not be recoverable. If
any such indication exists and where the carrying values exceed the estimated
recoverable amount, the assets or cash-generating units are written down to
their recoverable amount.
The recoverable amount of property, plant and equipment is the greater of fair
value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset. For an asset that does not
generate largely independent cash inflows, the recoverable amount is
determined for the cash-generating unit to which the asset belongs.
An item of property, plant and equipment is derecognised upon disposal, with
any gain or loss arising (calculated as the difference between the net
disposal proceeds and the carrying amount of the item) included in the
consolidated income statement in the year of disposal.
Leases
The Group has applied IFRS 16 only to those contracts that were previously
identified as a lease under IAS 17 Leases; any contracts not previously
identified as leases have not been reassessed for the purposes of adopting
IFRS 16. Accordingly, the definition of a lease under IFRS 16 has only been
applied to contracts entered into on or after 1 January 2019.
Leases, other than those with a lease period of less than one year at
inception, or where the original cost of the asset acquired would be a
negligible amount, are capitalised at inception at the present value of the
minimum lease payments. Lease payments are apportioned between the finance
charges and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance charges are
charged directly against income.
ROU assets are included within property, plant and equipment at cost and
depreciated over their estimated useful lives, which normally equates to the
lives of the leases, after considering anticipated residual values.
ROU assets which are sub-leased to customers are classified as finance leases
if the lease agreements transfer substantially all the risks and rewards of
usage to the lessee. All other sub-leases are classified as operating leases.
When assets are subject to finance leases, the present value of the sub-lease
is recognised as a receivable, net of allowances for expected credit losses
and the related ROU asset is derecognised. The difference between the gross
receivable and the present value of the receivable is recognised as unearned
finance lease income.
Finance lease interest income is recognised over the term of the lease using
the net investment method (before tax) so as to give a constant rate of return
on the net investment in sub-leases. Operating lease rental income is
recognised on a straight-line basis over the life of the lease.
Cash and cash equivalents
Cash and cash equivalents consist of cash at bank and in hand, short-term
deposits (including customer balances).
Financial assets
Financial assets are recognised when the Group becomes party to the contracts
that give rise to them. The Group classifies financial assets at inception as
financial assets at amortised cost, financial assets at fair value through
profit or loss or financial assets at fair value through other comprehensive
income.
Financial assets at amortised cost are recognised when the related business
model's objective is to collect contractual cash flows which are solely
principal and interest. On initial recognition, financial assets at amortised
cost are measured at fair value net of transaction costs.
Trade receivables are generally accounted for at amortised cost. Expected
credit losses are recognised for financial assets recorded at amortised cost,
including trade receivables. Expected credit losses are calculated by using an
appropriate probability of default, taking account of a range of possible
future scenarios and applying this to the estimated exposure of the Group at
the point of default.
Financial assets at fair value through profit or loss include derivative
financial instruments. Financial assets through profit or loss are measured
initially at fair value with transaction costs taken directly to the
consolidated income statement. Subsequently, the fair values are remeasured,
and gains and losses are recognised in the consolidated income statement.
Financial assets at fair value through other comprehensive income comprise
equity investments that are designated as such on acquisition. These
investments are measured initially at fair value. Subsequently, the fair
values are remeasured, and gains and losses are recognised in the consolidated
statement of comprehensive income.
Financial liabilities
Financial liabilities comprise trade and other payables, interest-bearing
loans and borrowings, contingent consideration, ante-post bets, guarantees and
derivative financial instruments. On initial recognition, financial
liabilities are measured at fair value net of transaction costs where they are
not categorised as financial liabilities at fair value. Financial liabilities
measured at fair value include contingent consideration, derivative financial
instruments and ante-post bets.
Financial liabilities at fair value are measured initially at fair value, with
transaction costs taken directly to the consolidated income statement.
Subsequently, the fair values are remeasured and gains and losses from changes
therein are recognised in the consolidated income statement.
Trade and other payables are held at amortised cost and include amounts due to
clients representing customer deposits and winnings, which are matched by an
equal and opposite amount within cash and cash equivalents.
All interest-bearing loans and borrowings are initially recognised at fair
value net of issue costs associated with the borrowing. After initial
recognition, interest-bearing loans and borrowings are subsequently measured
at amortised cost using the effective interest rate method.
The Group has entered into financial guarantees where the Group guarantees
payment in case of its joint venture defaulting on a debt. The Group has
reviewed and concluded that its arrangements meet the accounting definition of
a financial instrument under IFRS 9 Financial Instruments. The Group has
elected to apply IFRS 9 Financial Instruments (rather than IFRS 17 Insurance
Contracts) to all currently issued financial guarantees.
All financial liabilities are recorded as cash flows from financing
activities.
Derecognition of financial assets and liabilities
Financial assets are derecognised when the right to receive cash flows from
the assets has expired or when the Group has transferred its contractual right
to receive the cash flows from the financial assets or has assumed an
obligation to pay the received cash flows in full without material delay to a
third party, and either:
• substantially all the risks and rewards of ownership have been
transferred; or
• substantially all the risks and rewards have neither been retained nor
transferred but control is not retained.
Financial liabilities are derecognised when the obligation is discharged,
cancelled or expires.
Derivative financial instruments
The Group uses derivative financial instruments such as cross currency swaps,
foreign exchange swaps and interest rate swaps, to hedge its risks associated
with interest rate and foreign currency fluctuations. Derivative financial
instruments are recognised initially and subsequently at fair value. The gains
or losses on re-measurement are taken to the consolidated income statement.
Derivative financial instruments are classified as assets where their fair
value is positive, or as liabilities where their fair value is negative.
Derivative assets and liabilities arising from different transactions are only
offset if the transactions are with the same counterparty, a legal right of
offset exists, and the parties intend to settle the cash flows on a net basis.
Foreign currency translation
The presentational currency of Entain plc and the functional currencies of its
UK subsidiaries is Pounds Sterling (£).
Other than Sterling the main functional currencies of subsidiaries are the
Euro (€), the US Dollar ($), the Australian Dollar (AU$) and the New Zealand
Dollar (NZD). At the reporting date, the assets and liabilities of
non-sterling subsidiaries are translated into Pounds Sterling (£) at the rate
of exchange ruling at the balance sheet date and their cash flows are
translated at the weighted average exchange rates for the year. The post-tax
exchange differences arising on the retranslation are taken directly to other
comprehensive income.
Transactions in foreign currencies are initially recorded in the subsidiary's
functional currency and translated at the foreign currency rate ruling at the
date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the foreign currency rate of exchange
ruling at the balance sheet date.
All foreign currency translation differences are taken to the consolidated
income statement. Non-monetary items that are measured at historical cost in a
foreign currency are translated using the exchange rate at the date of the
initial transaction. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rate at the date when the fair
value was determined.
On disposal of a foreign entity, the deferred cumulative retranslation
differences previously recognised in equity relating to that particular
foreign entity are recognised in the consolidated income statement as part of
the profit or loss on disposal.
The following exchange rates were used in 2025 and 2024:
2025 2024
Currency Average Year end Average Year end
Euro (€) 1.168 1.146 1.179 1.206
US Dollar ($) 1.320 1.347 1.281 1.259
Australian Dollar (AU$) 2.048 2.016 1.931 2.014
NZ Dollars (NZD) 2.273 2.337 2.103 2.221
Income tax
Deferred tax is provided on all temporary differences at the balance sheet
date, between the tax bases of assets and liabilities and their carrying
amounts for financial reporting purposes except:
• on the initial recognition of goodwill;
• where the deferred tax liability arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and,
at the time of the transaction, affects neither the accounting profit nor the
tax profit;
• associated with investments in subsidiaries, joint ventures and
associates, where the timing of the reversal of the temporary differences can
be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future; and
• where deferred tax assets or liabilities arise related to the global
minimum level of taxation for multinational groups ("Pillar Two"), in
accordance with the mandatory temporary recognition exception.
Deferred tax assets are recognised for all deductible temporary differences
and carry forward of unused tax assets and unused tax losses, to the extent
that it is probable that taxable profit will be available against which the
deductible temporary differences and carry forward of unused tax assets and
unused tax losses can be utilised. The carrying amount of deferred tax assets
is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilised. Deferred tax assets and
liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realised or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively enacted at the
balance sheet date. Deferred tax balances are not discounted.
Income tax expenses are recognised within profit or loss except to the extent
that they relate to items recognised in other comprehensive income or directly
in equity, in which case they are recognised in other comprehensive income or
directly in equity.
Revenues, expenses and assets are recognised net of the amount of sales tax
except:
• where the sales tax incurred on a purchase of goods and services is not
recoverable from the taxation authority, in which case the sales tax is
recognised as part of the cost of acquisition of the asset or as part of the
expense item as applicable; and
• receivables and payables are stated with the amount of sales tax
included.
• The net amount of sales tax recoverable from, or payable to, the
taxation authority is included as part of receivables or payables in the
consolidated balance sheet.
Accounting for uncertain tax positions
The Group is subject to various forms of tax in a number of jurisdictions.
Given the nature of the industry within which the Group operates, the tax and
regulatory regimes are continuously changing and, as such, the Group is
exposed to a small number of uncertain tax positions. Judgement is applied to
adequately provide for uncertain tax positions where it is believed that it is
more likely than not that an economic outflow will arise. In particular,
judgement has been applied in the Group's accounting for Greek tax and further
disclosure is given in Note 16.
Equity instruments and dividends
Equity instruments issued by the Company are recorded at the fair value of
proceeds received net of direct issue costs.
Final dividends proposed by the Board of Directors and unpaid at the year end
are not recognised in the financial statements until they have been approved
by shareholders at the Annual General Meeting. Interim dividends are
recognised when paid.
Revenue
The Group reports the gains and losses on all betting and gaming activities as
revenue, which is measured at the fair value of the consideration received or
receivable from customers less free bets, promotions, bonuses and other fair
value adjustments. Revenue is net of VAT/GST. The Group considers betting and
gaming revenue to be out of the scope of IFRS 15 Revenue, and accounts for
those revenues within the scope of IFRS 9 Financial Instruments.
For Licensed Betting Offices (" LBOs"), on course betting, Core Telephone
Betting, mobile betting and Digital businesses (including Sportsbook, betting
exchange, casino, games, other number bets), revenue represents gains and
losses, being the amounts staked and fees received, less total payouts
recognised on the settlement of the sporting event or casino gaming machine
roulette or slots spin. Open betting positions ("ante-post") are carried at
fair value and gains and losses arising on these positions are recognised in
revenue.
The following forms of revenue, which are not significant in the context of
Group revenue, are accounted for within the scope of IFRS 15 Revenue. Revenue
from the online poker business reflects the net income (rake) earned from
poker hands completed by the year end.
The group also partners with external parties and records B2B revenue relating
to betting and gaming activities for which the Group doesn't control the
business or player related services, with agreements covering sports betting,
gaming and poker revenues. Affiliate commission income is also recorded as
income relating to the services the Group provides to external parties. In the
case of the revenue relating to venues such as greyhound stadia, revenue
represents income arising from broadcasting rights, admission fees and sales
of refreshments, net of VAT. Given the nature of these revenue streams they
are not considered to be subject to judgement over the performance
obligations, amount received or timing of recognition.
Cost of sales
Cost of sales consists primarily of gaming duties, payment processing fees,
chargebacks, revenue share payments relating to commission and royalties
payable to third parties, all of which are recognised on an accruals basis.
The Group has reviewed and concluded that its revenue share contracts meet the
accounting definition of principal arrangements under IFRS 15 Revenue from
Contracts with Customers.
Finance expense and income
Finance expense and income arising on interest-bearing financial instruments
carried at amortised cost are recognised in the consolidated income statement
using the effective interest rate method. Finance expense includes the
amortisation of fees that are an integral part of the effective finance cost
of a financial instrument, including issue costs, and the amortisation of any
other differences between the amount initially recognised and the redemption
price. All finance expenses are recognised over the availability period.
Share-based payment transactions
Certain employees (including Directors) of the Group receive remuneration in
the form of equity settled share-based payment transactions, whereby employees
render services in exchange for shares or rights over shares (equity settled
transactions).
The cost of equity settled transactions is measured by reference to the fair
value at the date on which they are granted. In valuing equity settled
transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Entain plc (market
conditions).
The cost of equity settled transactions is recognised in the consolidated
income statement, with a corresponding credit in equity, over the period in
which the performance conditions are fulfilled, ending on the date on which
the relevant employees become fully entitled to the award (vesting date). The
cumulative expense recognised for equity settled transactions at each
reporting date until the vesting date reflects the extent to which the vesting
period has expired and the number of awards that, in the opinion of the
Directors of the Group at that date, based on the best available estimate of
the number of equity instruments, will ultimately vest.
No expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market condition, which are treated
as vesting irrespective of whether or not the market condition is satisfied,
provided that all other performance conditions are satisfied.
The dilutive effect of outstanding options is reflected as additional share
dilution in the computation of earnings per share as shown in Note 9.
4.4 Future accounting developments
The International Accounting Standards Board ("IASB") has issued the following
new or revised standards with an effective date for financial periods
beginning on or after the dates disclosed below. These standards have not yet
been adopted by the Group. The IASB has also issued a number of minor
amendments to standards as part of their Annual Improvements to IFRS.
The Group is currently assessing the impact of the revised presentation and
disclosure requirements for financial statements from IFRS 18. It is not
anticipated that any of the other below unadopted new standards will have a
material impact on the Group's results or financial position.
IFRS 7 Financial Instruments: Disclosures Amendments to the classification and measurement of financial instruments 1 January 2026
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements Amendments regarding the sale or contribution of assets between an investor 1 January 2026
and its associate or joint venture
IFRS 1 First-time adoption of International Financial Reporting Standards Annual improvements to IFRS Accounting Standards Volume 11. These amendments, 1 January 2026
clarifications, simplifications, corrections and changes aimed at improving
Financial Instruments: Disclosures the consistency of several IFRS Accounting Standards.
IFRS 7 Financial Instruments
IFRS 9 Consolidated Financial Statements
IFRS 10 Statement of Cash flows
IAS 7
IFRS 18 Presentation and Disclosure in Financial Statements New accounting standard 1 January 2027
IFRS 19 Subsidiaries without Public Accountability New accounting standard 1 January 2027
IAS 21 The Effects of Changes in Foreign Exchange Rates Amendments regarding the translation of foreign operations from a 1 January 2027
non-hyperinflationary functional currency into a hyperinflationary
presentation currency
IAS 28 Investments in Associates and Joint Ventures
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial General Requirements for Disclosure of Sustainability related Financial Awaiting UK
Information Information and Climate-related Disclosures
endorsement
Climate-related Disclosures
IFRS S2
5 Segment information
The Group's operating segments are based on the reports reviewed by the
Executive management team, which is collectively considered to be the Chief
Operating Decision Maker ("CODM") to make strategic decisions and allocate
resources.
IFRS 8 requires segment information to be presented on the same basis as that
used by the CODM for assessing performance and allocating resources, and the
Group's operating segments.
The group results are now aggregated into the four reportable segments.
• UK&I: comprises betting, gaming and retail activities from online
and mobile operations, and activities in the shop estates within Great
Britain, Northern Ireland, Jersey, and Republic of Ireland.
• International: comprises betting, gaming and retail activities in the
shop estates in the rest of the world apart from UK&I and CEE.
• CEE: comprises betting, gaming and retail activities in Croatia and
Poland for brands SuperSport and STS.
• Corporate: includes costs associated with Group functions including
Group executive, legal, Group finance, US joint venture, tax and treasury.
The Executive management team of the Group have chosen to assess the
performance of operating segments based on a measure of net revenue, EBITDA
and operating profit with finance costs and taxation considered for the Group
as a whole. Transfer prices between operating segments are on an arm's-length
basis in a manner similar to transactions with third parties.
The segment results for the year ended 31 December were as follows:
UK&I International CEE Corporate Elimination of internal revenue Total
Group
2025 £m £m £m £m £m £m
NGR(1) 2,185.2 2,643.3 521.7 - (24.8) 5,325.4
VAT/GST (5.1) (60.9) - - - (66.0)
Revenue 2,180.1 2,582.4 521.7 - (24.8) 5,259.4
Gross profit 1,489.0 1,406.8 304.3 - - 3,200.1
Contribution(2) 1,250.9 1,044.0 273.8 - - 2,568.7
Operating costs excluding marketing costs (719.0) (479.2) (90.1) (120.3) - (1,408.6)
Underlying EBITDA before separately disclosed items 531.9 564.8 183.7 (120.3) - 1,160.1
Share-based payments (1.6) (2.0) - (8.5) - (12.1)
Depreciation and amortisation (144.0) (186.8) (20.0) (2.1) - (352.9)
Share of joint ventures and associates - (1.1) - 67.2 - 66.1
Operating profit/(loss) before separately disclosed items 386.3 374.9 163.7 (63.7) - 861.2
Separately disclosed items (Note 6) (510.0) (250.3) (164.3) (130.6) - (1,055.2)
Group operating (loss)/profit (123.7) 124.6 (0.6) (194.3) - (194.0)
Net finance expense (362.8)
Loss before tax (556.8)
Income tax (123.7)
Loss for the year (680.5)
1 Included within NGR are amounts of £216.7m (2024: £218.8m)
in relation to revenue recognised under IFRS 15 Revenue including online poker
services, B2B income, venue sales and content streaming.
2 Contribution represents gross profit less marketing costs and is
a key performance metric used by the Group.
UK&I International CEE Corporate Elimination of internal revenue Total
Group
2024 £m £m £m £m £m £m
NGR 2,053.4 2,640.4 488.0 - (19.9) 5,161.9
VAT/GST (4.3) (68.4) - - - (72.7)
Revenue 2,049.1 2,572.0 488.0 - (19.9) 5,089.2
Gross profit 1,395.8 1,443.4 278.9 - - 3,118.1
Contribution 1,169.4 1,062.0 249.1 - - 2,480.5
Operating costs excluding marketing costs (732.1) (468.0) (78.2) (113.4) - (1,391.7)
Underlying EBITDA before separately disclosed items 437.3 594.0 170.9 (113.4) - 1,088.8
Share-based payments (5.9) (3.9) - (3.5) - (13.3)
Depreciation and amortisation (145.8) (180.0) (18.0) (0.9) - (344.7)
Share of joint ventures and associates - (3.1) - (111.1) - (114.2)
Operating profit/(loss) before separately disclosed items 285.6 407.0 152.9 (228.9) - 616.6
Separately disclosed items (Note 6) (3.8) (524.0) (243.9) (95.0) - (866.7)
Group operating profit/(loss) 281.8 (117.0) (91.0) (323.9) - (250.1)
Net finance expense (107.3)
Loss before tax (357.4)
Income tax (103.6)
Loss for the year (461.0)
Further analysis on the channel split for the year ended 31 December were as
follows:
UK&I International CEE Corporate Elimination of internal revenue Total
Group
2025 £m £m £m £m £m £m
Online NGR 1,136.5 2,325.0 437.4 - (24.8) 3,874.1
Retail NGR 1,048.7 318.3 84.3 - - 1,451.3
Total NGR 2,185.2 2,643.3 521.7 - (24.8) 5,325.4
Online Underlying EBITDA 310.5 516.7 176.4 - - 1,003.6
Retail Underlying EBITDA 221.4 48.1 7.3 - - 276.8
Corporate Underlying EBITDA - - - (120.3) - (120.3)
Total Underlying EBITDA 531.9 564.8 183.7 (120.3) - 1,160.1
UK&I International CEE Corporate Elimination of internal revenue Total
Group
2024 £m £m £m £m £m £m
Online NGR 984.6 2,330.8 404.9 - (19.9) 3,700.4
Retail NGR 1,068.8 309.6 83.1 - - 1,461.5
Total NGR 2,053.4 2,640.4 488.0 - (19.9) 5,161.9
Online Underlying EBITDA 226.1 553.7 161.2 - - 941.0
Retail Underlying EBITDA 211.2 40.3 9.7 - - 261.2
Corporate Underlying EBITDA - - - (113.4) - (113.4)
Total Underlying EBITDA 437.3 594.0 170.9 (113.4) - 1,088.8
Assets and liabilities information is reported internally in total and not by
reportable segment and, accordingly, no information is provided in this note
on assets and liabilities split by reportable segment.
Geographical information
Revenue by destination and non-current assets on a geographical basis for the
Group, are as follows:
2025 2024
Revenue Non-current assets(3) Revenue Non-current assets(3)
£m £m £m £m
United Kingdom and Ireland 2,179.8 2,517.9 2,048.5 2,855.6
Australia and New Zealand 541.3 1,076.5 573.9 1,160.7
Italy 551.3 555.9 518.1 505.8
Rest of Europe(1) 1,426.8 3,238.6 1,382.0 3,506.7
Rest of the world(2) 560.2 249.5 566.7 263.0
Total 5,259.4 7,638.4 5,089.2 8,291.8
1 Rest of Europe is predominantly driven by markets in
Croatia, Poland, Belgium, Netherlands and Georgia.
2 Rest of the world is predominantly driven by the markets
in Brazil and Canada.
3 Non-current assets excluding derivative financial
instruments, deferred tax assets and retirement benefit assets.
6 Separately disclosed items
2025 2024
Tax impact Tax impact
£m £m £m £m
Impairment loss 586.8 38.0 476.4 -
Amortisation of acquired intangibles 258.1 (48.9) 286.8 (23.6)
Restructuring costs 49.4 (8.1) 49.6 (10.8)
Movement in fair value of contingent consideration and put option 62.9 (7.3) 43.3 (24.1)
Finance costs 8.8 (0.3) 9.1 -
Provision for civil penalty 53.7 0.9 - -
Legal and onerous contract provisions 41.3 (2.2) 10.6 (2.5)
Tax/one-off legislative impacts - - - 25.7
Loss on disposal of property, plant and equipment 3.0 - - -
Total 1,064.0 (27.9) 875.8 (35.3)
Separately disclosed items for the year after tax 1,036.1 840.5
The items above reflect incomes and expenditures which are either exceptional
in nature or size or are associated with the amortisation of acquired
intangibles. The Directors believe that each of these items warrants separate
disclosure as they do not form part of the day-to-day underlying trade of the
Group.
Impairment loss
Relates to non-cash impairments with the current year charge recorded against
the UK business of £487.7m, the Belgium business of £76.9m, an impairment of
the Group's ROI retail portfolio of £18.3m and £3.9m on the FHG business in
Australia prior to its disposal. Further details are provided in Note 11.
Amortisation of acquired intangibles
Amortisation charges in relation to acquired intangible assets arising from
acquisitions. The majority of the charge is from recent acquisitions,
including SuperSport, BetCity, STS, and TAB NZ.
Restructuring costs
The Group has incurred £49.4m (2024: £49.6m) of costs relating to
restructuring costs, primarily related to Project Romer, which is the
previously communicated 3 year restructuring program centred on simplifying
the organisation. In both the current and previous year, this includes
redundancy costs, contract termination fees and professional fees relating to
the project.
Movement in fair value of contingent consideration and put option
The charge of £62.9m (2024: £43.3m) reflects the movement in the fair value
of contingent consideration and put option arrangements on recent
acquisitions, as well as the associated discount unwind.
Finance costs
The charge of £8.8m (2024: £9.1m) primarily relates to a non-cash write-off
of capitalised fees on loan facilities as a result of the refinancing
activities during the year (see Note 7).
Provision for civil penalty
During the year the Group has recognised a provision of £49.5m plus fees in
relation to the civil penalty proceedings commenced by the Australian
Transaction Reports and Analysis Centre ("AUSTRAC"). See Note 16 for further
information.
Legal and onerous contract provisions
The group has incurred £41.3m in relation to a small number of litigation and
regulatory claims. These primarily include a £19.8m charge in relation to the
discount unwind on the original liability for our commitments in respect of
the DPA and the associated shareholder litigation as described in Note 16. In
addition, a provision of £13.0m for Germany player claim settlements was
recognised during the year (see Note 16), as well as £6.9m relating to a
settlement of historic tax positions.
Loss on disposal of assets
A loss on disposal of £3.0m has been recognised in the year (2024: £nil).
This primarily relates to the disposal of assets associated with the closure
of a number of smaller divisions in the group.
7 Finance expense and income
2025 2024
£m £m
Interest on term loans, bonds and bank facilities (246.2) (264.6)
Interest on lease liabilities(1) (18.3) (15.7)
Finance costs (Note 6) (8.8) (9.1)
Total finance expense (273.3) (289.4)
Interest receivable 12.8 16.1
(Losses)/gains arising from financial derivatives (216.5) 145.0
Gains arising on foreign exchange on debt instruments 114.2 21.0
Net finance expense (362.8) (107.3)
1 Interest on lease liabilities of £18.3m (2024: £15.7m)
is net of £0.1m of sub-let interest receivable (2024: £0.2m).
8 Dividends
2025 2024 2025 2024
Shares in Shares in
issue issue
Pence per share pence pence
number number
2023 second interim dividend paid - 8.9 - 639.0
2024 interim dividend paid - 9.3 - 639.3
2024 second interim dividend paid 9.3 n/a 639.3 n/a
2025 interim dividend paid 9.8 n/a 639.5 n/a
A second interim dividend of 9.8p (2024: 9.3p) per share, amounting to £62.6m
(2024: £59.5m) in respect of the year ended 31 December 2025, was proposed
by the Directors on 5 March 2026. The estimated total amount payable in
respect of the final dividend is based on the expected number of shares in
issue on 5 March 2026. There are no income tax implications for the Group and
Company arising from the proposed second interim dividend. The 2024 second
interim dividend of 9.3p per share (£59.5m) was paid on 25 April 2025. The
2025 interim dividend of 9.8p per share (£62.6m) was paid on 29 September
2025.
A dividend reinvestment plan ("DRIP") is available to shareholders who would
prefer to invest their dividends in the Company's shares. The last date for
receipt of DRIP elections is 31 March 2026.
In the year, the Group paid a dividend totalling £48.9m to non-controlling
interests (2024: £12.5m).
9 Earnings per share
Basic earnings per share has been calculated by dividing the loss for the year
attributable to shareholders of the Company of £666.7m (2024: £452.7m) by
the weighted average number of shares in issue during the year of £639.5m
(2024: £639.1m).
The dilutive effects of share options and contingently issuable shares are not
considered when calculating the diluted loss per share.
At 31 December 2025, there were 639.6m €0.01 ordinary shares in issue.
The calculation of adjusted earnings per share which removes separately
disclosed items and foreign exchange gains and losses arising on financial
instruments has also been disclosed as it provides a better understanding of
the underlying performance of the Group. Separately disclosed items are
defined in Note 4 and disclosed in Note 6.
Total earnings per share
Weighted average number of shares (millions) 2025 2024
Shares for basic earnings per share 639.5 639.1
Potentially dilutive share options and contingently issuable shares 6.3 5.2
Shares for diluted earnings per share 645.8 644.3
2025 2024
Total profit £m £m
Loss attributable to shareholders (666.7) (452.7)
Losses/(gains) from financial instruments 216.5 (145.0)
Gains from foreign exchange debt instruments (114.2) (21.0)
Associated tax charge on (losses)/gains arising from financial instruments and (11.4) 23.1
foreign exchange debt instruments
Separately disclosed items net of tax (Note 6) 974.7 788.3
Adjusted profit attributable to shareholders 398.9 192.7
Standard earnings per share Adjusted earnings per share
Earnings per share (pence) 2025 2024 2025 2024
Basic earnings per share
From (loss)/profit for the year (104.3) (70.8) 62.4 30.2
Diluted earnings per share
From (loss)/profit for the year (104.3) (70.8) 61.8 29.9
The earnings per share presented above is inclusive of the performance from
the US joint venture BetMGM. Adjusting for the removal of the BetMGM
performance would result in a basic adjusted earnings per share of 52.1p
(2024: 47.3p) and a diluted adjusted earnings per share of 51.6p (2024:
46.9p).
10 Goodwill and intangible assets
Goodwill Licences Software Customer Trade-marks Total
relationships & brand names
£m £m £m £m £m £m
Cost
At 1 January 2024 5,269.4 965.0 998.4 1,504.2 2,691.5 11,428.5
Exchange adjustment (194.9) (80.7) (28.6) (43.2) (66.1) (413.5)
Additions - 18.3 185.6 - - 203.9
Disposals - - (2.7) - - (2.7)
Reclassifications - - 2.0 - - 2.0
At 31 December 2024 5,074.5 902.6 1,154.7 1,461.0 2,625.4 11,218.2
Exchange adjustment 122.2 (24.5) 6.4 37.4 41.5 183.0
Additions - 19.0 213.6 - - 232.6
Disposals - (0.2) (4.6) (0.7) - (5.5)
Reclassifications - 0.2 (0.1) - - 0.1
At 31 December 2025 5,196.7 897.1 1,370.0 1,497.7 2,666.9 11,628.4
Accumulated amortisation and
At 1 January 2024 553.4 71.5 649.0 1,146.1 332.4 2,752.4
Exchange adjustment (34.3) (5.5) (18.3) (33.1) (19.7) (110.9)
Amortisation charge - 48.9 167.4 165.6 103.5 485.4
Impairment charge 416.5 - 19.2 - - 435.7
Disposals - - (2.7) - - (2.7)
At 31 December 2024 935.6 114.9 814.6 1,278.6 416.2 3,559.9
Exchange adjustment 7.2 0.2 2.6 30.9 19.6 60.5
Amortisation charge - 53.1 166.1 139.9 102.5 461.6
Impairment charge 510.1 - 10.0 - 30.0 550.1
Disposals - (0.1) (3.4) - - (3.5)
Reclassifications - (2.3) 2.3 - - -
At 31 December 2025 1,452.9 165.8 992.2 1,449.4 568.3 4,628.6
Net book value
At 31 December 2024 4,138.9 787.7 340.1 182.4 2,209.2 7,658.3
At 31 December 2025 3,743.8 731.3 377.8 48.3 2,098.6 6,999.8
At 31 December 2025 the Group had not entered into contractual commitments
for the acquisition of any intangible assets (2024: £nil).
Included within trade-marks and brand names are £1,398.4m (2024: £1,398.4m)
of intangible assets considered to have indefinite lives. These assets relate
to the UK Ladbrokes and Coral brands which are considered to have indefinite
durability that can be demonstrated, and their value can be readily measured.
The brands operate in longstanding and profitable market sectors. The Group
has a strong position in the market with the "know-how" required to run such
operations and there are barriers to entry due to the requirement to
demonstrate that the applicant is a fit and proper person.
Goodwill reflects the value by which consideration exceeds the fair value of
net assets acquired as part of a business combination including the deferred
tax liability arising on acquisitions.
Licences comprise the cost of acquired betting shop and online licences, as
well as licences acquired as part of acquisitions.
Software relates to the capitalisation of internally developed software
(£144.7m of 2025 additions) and the cost of acquired software, through
purchase or business combination.
Customer relationships, trade-marks and brand names relate to the fair value
of customer lists, trade-marks and brand names acquired as part of business
combinations, primarily relating to the bwin, Ladbrokes Coral Group, Enlabs,
SuperSport, BetCity, 365Scores, STS and TAB NZ businesses.
11 Impairment testing of goodwill and indefinite life
intangible assets
An impairment loss is recognised for any amount by which an asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs to sell and its value in use. For the
purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (cash-generating units).
Within UK and TAB NZ Retail, the cash-generating units ("CGUs") are generally
an individual Licensed Betting Office ("LBO") and, therefore, impairment is
first assessed at this level for the relevant intangibles (such as software
and licences) and property, plant and equipment, with any impairment arising
booked to the intangibles and property, plant and equipment on a pro-rata
basis. Since goodwill, customer relationships and brand names have not been
historically allocated to individual LBOs, a secondary assessment is then made
to compare the carrying value of the segment against the recoverable amount
with any additional impairment then taken against goodwill first. Other Retail
CGUs are assessed as a whole due to either being franchise arrangements or on
the basis of materiality.
For International the CGU is defined as websites hosted by proprietary
platforms based in non-UK countries, and for all other segments the CGU is the
relevant geographical location or business unit. Any impairments are made
firstly to goodwill, next to any capitalised intangible asset and then finally
to property, plant and equipment. The expected cash flows generated by the
assets are discounted using appropriate discount rates that reflect the time
value of money and risks associated with the group of assets.
During the year, the Group's STS business migrated onto the same proprietary
platform as the SuperSport business, as well as being internally managed and
monitored together as the CEE operating segment. Therefore the previous CGUs
of SuperSport and STS have been combined within the new CEE CGU.
For both tangible and intangible assets, the future cash flows are based on
the forecasts and budgets of the CGU or business discounted to reflect time
value of money. The key assumptions within the UK and European Retail budgets
are over-the-counter wagers (customer visits and spend per visit), the average
number of machines per shop, gross win per shop per week, salary increases,
the potential impact of the shop closures and the fixed costs of the LBOs. The
key assumptions within the budgets for online businesses are the number of
active customers, net revenue per head, win percentage, marketing spend,
revenue shares and operating costs. These assumptions are the basis of the
EBITDA forecasts which are used for the value in use calculations. All
forecasts take into account the impact of the Group's sustainability
commitments as well as any significant impacts of climate change.
The value in use calculations use cash flows based on detailed,
Board-approved, financial budgets prepared by management covering a three-year
period which have been risk adjusted for factors specific to each CGU. These
forecasts have been extrapolated over years 4 to 9 representing a declining
growth curve from year 3 until the long-term forecast growth rate is reached.
The growth rates used from years 4 to 9 range from 0% to 8% (2024: between 0%
and 10%). From year 10 onwards long-term growth rates used are between 0% and
4% (2024: between 0% and 2%) and are based on the long-term GDP growth rate of
the countries in which the relevant CGUs operate or the relevant outlook for
the business. An nine-year horizon is considered appropriate based on the
Group's history of underlying profit as well as ensuring there is an
appropriate decline to long-term growth rates from those growth rates
currently observed in our key markets. A 0% growth rate (2024: 0%) has been
used for most of the Retail operating segment including the UK. All key
assumptions used in the value in use calculations reflect the Group's past
experience unless a relevant external source of information is available.
Whilst the same approach is adopted for TAB NZ impairment reviews, the value
in use is assessed over the 25-year life of the licence rather than into
perpetuity.
The discount rate calculation is based on the specific circumstances with
reference to the WACC and risk factors expected in the industry in which the
Group operates.
The pre-tax discount rates used and the associated carrying value of goodwill
by CGU is as follows:
2025 2024 2025 2024
Goodwill % % £m £m
UK Retail 12.4 12.8 39.5 76.4
UK Digital 11.6 11.3 483.0 933.6
International 13.2 11.6 1,361.4 1,315.4
Australia 14.7 13.7 130.4 134.5
Belgium Retail 12.3 12.8 - -
Belgium Digital 12.3 12.8 - 11.5
Eurobet Retail 13.4 13.5 78.8 74.9
Eurobet Digital 13.4 13.5 309.4 294.2
Enlabs 11.3 12.0 206.2 196.0
BetCity 11.3 13.0 81.9 77.8
CEE 11.1-11.7 n/a 851.4 n/a
SuperSport n/a 11.7 n/a 503.6
STS n/a 13.6 n/a 301.8
365Scores 13.5 11.3 82.3 88.0
TAB NZ Retail 13.2 14.2 - -
TAB NZ Digital 13.2 14.2 84.6 89.0
ROI 11.1 11.3 - 6.2
Crystalbet 13.6 11.3 34.9 36.0
3,743.8 4,138.9
It is not practical or material to disclose the carrying value of individual
licences by LBO.
Included within trade-marks and brand names are £1,398m (2024: £1,398.4m) of
intangible assets considered to have indefinite lives. These assets relate to
the UK Ladbrokes and Coral brands and are assessed on a combined CGU basis
between UK Retail and UK Digital.
Impairment recognised during the year
Impairments of intangible assets and property, plant and equipment are
recognised as separately disclosed items within operating expenses (see Note
6).
UK
As communicated to the market the recently announced tax changes in the UK
online business are expected to have a material impact on profitability post
mitigation. As such, the outlook for the UK business for 2026 and beyond has
been reduced. This reduction has led to a non-cash impairment charge of
£487.7m against our UK goodwill.
Belgium
During the year, the Group recorded a non-cash impairment charge of £76.9m
against Belgium. This is driven by ongoing rationalisation of the retail
estate which has a consequential impact on our online business given retail is
a major acquisition channel for online. This has been reflected in our
forecasts for the business looking ahead.
Republic of Ireland
Continued challenges remain against our Retail estate in ROI as a result of a
reduced outlook for this market. During the year, the Group recorded a
non-cash impairment charge of £18.3m against the ROI CGU.
FHG
As part of the sale process of the FHG business in Australia, a £3.9m
impairment charge has been determined against the recoverable value of the
business's assets.
Sensitivity analysis
Sensitivity analysis for the impairment charge recognised on the UK CGUs in
the year is given below. The remaining CGUs with an impairment charge have not
been disclosed as the remaining assets associated with the ROI and Belgium
CGUs are not material and the impairment on FHG was based on an external sale
valuation. Whilst there has been no impairment recognised on the Group's TAB
NZ CGUs, the headroom is minimal and the impact of changes in assumptions on
the impairment assessment is disclosed below. For all other CGUs, no
reasonable change in assumptions would cause an additional material
impairment.
1% 1% 5%
growth rate discount rate EBITDA
Impairment £m £m
UK 211.4 212.9 178.7
TAB NZ 58.0 67.8 47.3
269.4 280.7 226.0
Impairment recognised during the prior year
TAB NZ
During the prior year, the Group recorded a non-cash impairment charge of
£142.5m against TAB NZ (Digital CGU £124.0m, Retail CGU £18.5m) which arose
as a result of the outlook for the New Zealand business deteriorating during
2024. Whilst this is in part due to the delay in the introduction of the
legislative net (geo-blocking), forecast underlying growth has also reduced.
STS
During the prior year, our Polish business continued to face aggressive
competitor activity. Whilst initial views were that the intensity of
competition would reduce as the year progressed and normalise ahead of 2025,
we were yet to see any easing at the year end. As such, the outlook for the
Polish business for 2025 and beyond was reduced. This reduction led to a
non-cash impairment charge of £75.9m against the STS CGU.
BetCity
With ongoing changes in regulation in the Netherlands and the introduction of
deposit limits, the most recent of which was on 1 October 2024, and a higher
gaming tax rate, the outlook for the BetCity business weakened over 2024. This
reduction in the outlook led to a non-cash impairment charge of £113.1m
against the BetCity CGU.
Belgium
During the prior year, the Group recorded a non-cash impairment charge of
£76.3m against Belgium (Retail CGU £50.5m, Digital CGU £25.8m). This was
driven by ongoing heavy regulation in Retail and the decline in online casino
NGR as a result of the wallet decoupling with bwin.be.
Republic of Ireland
Continued challenges relating to our Retail estate in ROI as a result of a
reduced outlook for this market. During the prior year, the Group recorded a
non-cash impairment charge of £8.7m against the ROI CGU.
12 Property, plant and equipment
Land and Plant and Fixtures Leased Total
buildings equipment and fittings assets
£m £m £m £m £m
Cost
At 1 January 2024 58.7 168.4 275.6 624.4 1,127.1
Exchange adjustment (2.0) (6.7) (11.7) (7.3) (27.7)
Additions 5.5 30.1 49.0 132.4 217.0
Disposals (1.6) (4.2) (16.7) (202.0) (224.5)
Reclassification (0.3) (15.4) 15.9 (2.3) (2.1)
At 31 December 2024 60.3 172.2 312.1 545.2 1,089.8
Exchange adjustment (0.2) 5.2 6.3 4.4 15.7
Additions 12.2 25.0 69.7 89.0 195.9
Disposals (5.0) (7.1) (29.6) (48.5) (90.2)
Reclassification 5.6 7.4 (15.2) 2.4 0.2
At 31 December 2025 72.9 202.7 343.3 592.5 1,211.4
Accumulated depreciation
At 1 January 2024 22.8 67.0 117.8 386.1 593.7
Exchange adjustment (1.2) (2.2) (11.7) (2.9) (18.0)
Depreciation charge 5.9 33.0 44.0 63.2 146.1
Impairment 1.2 1.3 4.8 11.5 18.8
Disposals (1.6) (4.2) (16.7) (202.0) (224.5)
Reclassification 2.1 (0.6) (1.6) - (0.1)
At 31 December 2024 29.2 94.3 136.6 255.9 516.0
Exchange adjustment 0.1 4.3 5.2 2.9 12.5
Depreciation charge 6.8 29.8 39.9 72.9 149.4
Disposals (2.4) (5.3) (29.2) (40.3) (77.2)
Impairment 0.4 2.6 11.0 22.7 36.7
Reclassification 2.1 (0.4) (1.4) - 0.3
At 31 December 2025 36.2 125.3 162.1 314.1 637.7
Net book value
At 31 December 2024 31.1 77.9 175.5 289.3 573.8
At 31 December 2025 36.7 77.4 181.2 278.4 573.7
At 31 December 2025, the Group had not entered into contractual commitments
for the acquisition of any property, plant and equipment (2024: £nil).
Included within fixtures, fittings and equipment are assets in the course of
construction which are not being depreciated of £32.0m (2024: £26.4m),
relating predominantly to refurbishments and hardware roll out in retail
stores.
An impairment charge of £36.7m (2024: £18.8m) has been made against the
Group's ROI and Belgium businesses and the prior year relates to closed retail
shops and office buildings. See Notes 6 and 11 for further details.
Analysis of leased assets:
Land and Plant and Total
buildings equipment
£m £m £m
Cost
At 1 January 2024 600.9 23.5 624.4
Exchange adjustment (6.9) (0.4) (7.3)
Additions 93.7 38.7 132.4
Disposals (192.5) (9.5) (202.0)
Reclassifications (4.4) 2.1 (2.3)
At 31 December 2024 490.8 54.4 545.2
Exchange adjustment 4.2 0.2 4.4
Additions 85.5 3.5 89.0
Disposals (46.2) (2.3) (48.5)
Reclassification - 2.4 2.4
At 31 December 2025 534.3 58.2 592.5
Accumulated depreciation
At 1 January 2024 375.2 10.9 386.1
Exchange adjustment (2.8) (0.1) (2.9)
Depreciation charge 58.9 4.3 63.2
Impairment 11.1 0.4 11.5
Disposals (192.5) (9.5) (202.0)
At 31 December 2024 249.9 6.0 255.9
Exchange adjustment 2.8 0.1 2.9
Depreciation charge 62.8 10.1 72.9
Disposals (38.4) (1.9) (40.3)
Impairment 21.1 1.6 22.7
At 31 December 2025 298.2 15.9 314.1
Net book value
At 31 December 2024 240.9 48.4 289.3
At 31 December 2025 236.1 42.3 278.4
13 Provisions
Property and contract Restructuring Litigation and Total
provisions provisions regulation
provisions
£m £m £m £m
At 1 January 2024 5.3 3.3 16.5 25.1
Provided 12.0 3.1 45.0 60.1
Utilised (3.9) (3.3) (39.4) (46.6)
Released (0.5) - - (0.5)
Foreign exchange (0.1) - (0.3) (0.4)
At 31 December 2024 12.8 3.1 21.8 37.7
Provided 3.8 1.2 109.2 114.2
Utilised (4.1) (3.1) (44.8) (52.0)
Released (0.1) - (1.0) (1.1)
Foreign exchange (0.2) - 0.6 0.4
At 31 December 2025 12.2 1.2 85.8 99.2
Property and contract provisions
The Group is party to a number of leasehold property contracts. Provision has
been made against the unavoidable non-rent costs on those leases where the
property is now vacant. Provisions have been based on management's best
estimate of the minimum future cash flows to settle the Group's obligations,
considering the risks associated with each obligation, discounted at a
risk-free interest rate of 4.1%. The periods of vacant property commitments
range from 1 to 9 years (2024: 1 to 10 years). In accordance with IFRS 16, the
rental elements of certain property provisions are included within lease
liabilities.
Restructuring provisions
Restructuring provisions relate to redundancy costs due to be paid in 2026 as
a result of Project Romer initiatives.
Litigation and regulation provisions
A litigation and regulation provision of £85.8m has been recorded relating to
estimates for potential liabilities which may arise in the Group because of
customer claims and other litigation related past practices. These provisions
have been updated to reflect management's best estimate of probable cash
outflows related to these matters.
AUSTRAC
On 16 December 2024, the Australian Transaction Reports and Analysis Centre
("AUSTRAC") commenced civil penalty proceedings in the Federal Court of
Australia against Entain Group Pty Ltd, the Group's subsidiary in Australia
("Entain Australia"). The full Statement of Claim was filed on 31 March 2025,
alleging contraventions of the Australian Anti-Money Laundering and
Counter-Terrorism Financing ("AML and CTF") Act 2006. An Amended Statement of
Claim was subsequently filed on 19 August 2025.
As previously disclosed, the investigation was announced by AUSTRAC in
September 2022 and Entain has cooperated fully with AUSTRAC throughout its
investigation. In December 2022, a dedicated programme of further enhancements
to Entain Australia's AML and CTF systems and processes was commenced, which
was subsequently completed in June 2025. All remediation activities required
under the dedicated programme, as communicated to AUSTRAC, are complete.
In July 2025, AUSTRAC and Entain took part in a mediation on a confidential
and without prejudice basis. Neither party has asked to terminate the
mediation process and, whilst the without prejudice discussions continue, a
further meeting between Entain, AUSTRAC and the mediator is expected at the
end of March 2026. Entain Australia filed its defence at the end of October
2025. In the previous financial reporting period, the AUSTRAC proceedings were
disclosed as a contingent liability, referencing previous penalties ordered in
proceedings against entities in the gaming sector which ranged from AUD$45m to
AUD$450m. It was stated that proceedings may result in a penalty being levied
which could potentially be material, however management were unable to
determine a reliable estimate at that time.
As part of the preparation of the financial statements, the Directors have
considered the current status of the AUSTRAC proceedings and have concluded
that, in line with the requirements of IAS 37 - Provision, Contingent
Liabilities and Contingent Assets, it is appropriate to maintain the provision
recognised at half-year of AUD$100m. Although a provision has been recognised,
there remains considerable uncertainty in relation to the outcome of the
matter and a wide range of possible penalties. The Directors continue to note
the range of penalties in the proceedings against other entities in the gaming
sector. The considerable uncertainty relates to matters including: (a) the
extent to which Entain Australia and AUSTRAC reach agreement in principle as
to the amount of any penalty in the course of ongoing without prejudice
discussions; (b) if so, whether the Court will make an order consistent with
any amount agreed between the parties (and the Directors note that the Court
has wide discretion in this regard); and (c) if Entain Australia and AUSTRAC
are unable to reach an agreement in principle on the amount of any penalty,
what penalty the Court may determine following a contested proceeding. As
such, should any penalty become payable by Entain Australia, it may differ
materially from the provision recorded as at 31 December 2025.
Player claims
The Group faces claims initiated by Austrian and German players relating to
the return of their gambling losses. A provision of £18.1m has been made for
certain of these claims (see Note 16 for further details).
Of the total provisions at 31 December 2025, £37.7m (2024: £34.8m) is
current and £61.5m (2024: £2.9m) is non-current. Provisions expected to be
settled in greater than one year are discounted at the risk-free rate.
14 Net debt
The components of the Group's adjusted net debt are as follows:
2025 2024
£m £m
Current assets
Cash and short-term deposits 554.1 588.9
Current liabilities
Interest-bearing loans and borrowings (25.4) (25.3)
Non-current liabilities
Interest-bearing loans and borrowings (3,647.1) (3,605.9)
Net debt (3,118.4) (3,042.3)
Cash held on behalf of customers (197.0) (196.6)
Fair value swaps held against debt instruments (derivative financial (141.8) 66.8
(liability)/asset )
Deposits 12.4 20.7
Balances held with payment service providers 120.3 136.8
Sub-total (3,324.5) (3,014.6)
Lease liabilities (319.7) (324.5)
Adjusted net debt including lease liabilities (3,644.2) (3,339.1)
Cash held on behalf of customers represents the outstanding balance due to
customers in respect of their online gaming wallets.
15 Notes to the statement of cash flows
2025 2024
£m £m
Net cash inflow from operations
Loss before tax (556.8) (357.4)
Net finance expense 362.8 107.3
Loss before tax and net finance expense (194.0) (250.1)
Adjustments for:
Impairment 586.8 457.4
Loss on disposal 3.8 -
Depreciation of property, plant and equipment 149.4 146.4
Amortisation of intangible assets 461.6 485.4
Share-based payments charge 12.1 13.3
Increase in trade and other receivables (32.5) (78.2)
Increase in other financial liabilities 67.2 50.7
(Decrease)/increase in trade and other payables (143.8) 36.9
Increase in provisions 61.1 12.6
Share of results from joint venture and associate (66.1) 114.2
Other (1.2) (12.4)
Cash generated from operations 904.4 976.2
16 Commitments and contingencies
Greek Tax
In November 2021, the Athens Administrative Court of Appeal ruled in favour of
the Group's appeal against the tax assessments raised by the Greek tax
authorities in respect of alleged unpaid taxes and penalties for the years
2010 and 2011. In February 2022, the Greek tax authorities appealed against
the judgements to the Greek Supreme Administrative Court. While the Group
expects to be successful in defending the appeals by the Greek tax
authorities, should the Greek Supreme Administrative Court rule in favour of
the Greek tax authorities, then the Group could become liable for the full
2010 and 2011 assessments plus interest, an estimated total of €316m at 31
December 2025.
The appeals were due to be heard before the Greek Supreme Administrative Court
at various dates in 2024 and 2025 but has been deferred to 18th March 2026
and 22nd April 2026. A deferral of such matters is not unusual in Greece and
the underlying fact pattern of the case has not changed since the prior year.
Shareholder Litigation
On 30 November 2024 and 2 December 2024, Entain plc was served with two claims
brought by two groups of shareholders which arise from the circumstances and
disclosures relating to GVC's legacy Turkish-facing business and the
investigation by HMRC into those operations. The investigation was concluded
upon the entry by Entain plc into a Deferred Prosecution Agreement with the UK
Crown Prosecution Service on 5 December 2023.
In 2025, three additional groups of shareholders brought three further
substantial claims against Entain plc in the English High Court and one
additional group of shareholders has issued a substantial claim but has not
yet served it on Entain plc. All these claims appear to arise from the same
circumstances and disclosures as outlined above. Further work is being
performed to assess the total value of these claims. An initial case
management hearing is scheduled for June 2026.
Consistent with any claims of this nature, there is inherent uncertainty in
the final outcome which could be material. It is possible, but not probable
that the claims will result in an economic outflow and given the early stage
of the proceedings, together with the uncertainty, no provision has been made.
Player Claims
Germany
As with other operators in the industry, companies in the Group face claims
initiated in Germany by German customers for a period relating to before the
Group held a German local gambling licence. In brief, the claimants seek the
return of their gambling losses alleging that the relevant underlying
contracts between the claimant and the applicable Group companies are not
enforceable due to the companies not holding a local gambling licence at the
relevant time. The Group's position is that it held Gibraltarian and Maltese
licences at the relevant time that entitled it to offer its services into
Germany in compliance with EU law. In addition, certain German Courts have
established that the contracts are enforceable.
The Directors have assessed each claim in detail and believe that a certain
portion of these claims are expected to be settled out of court. As of 31
December 2025 a provision of €15m has been made in respect of these.
In addition, there are other outstanding claims made against the group of
€105m. The majority of these claims are currently stayed pending a decision
of the European Court of Justice ("ECJ"). An opinion from the Advocate General
is expected in March 2026.
As at the reporting date, having regard to the current status of the
proceedings and based on legal advice received, the Directors do not consider
that the portion of claims which have not been provided for give rise to a
probable outflow of economic benefits. Accordingly, no provision has been
recognised in respect of these. While the Group has assessed the claims
received to date, the inherent uncertain nature of such matters means that
additional claims may be received in the future. Consistent with claims of
this nature, there can be uncertainty surrounding the final outcome.
Austria
As with other operators in the industry, companies in the Group face claims
initiated in Austria by Austrian customers. In brief, the claimants seek the
return of their casino and poker losses, alleging that the relevant underlying
contracts between the claimant and the applicable Group companies are not
enforceable because the companies do not hold a local gambling licence. The
Group's position is that it holds a Maltese licence that entitles it to offer
its services into Austria and that it is compliant with EU law. The Group's
approach is to manage the claims against it as efficiently as possible,
including entering into settlements where appropriate. The cost of these
settlements and outstanding claims are not material to the Group.
BetMGM loan guarantee
BetMGM, the Group's joint venture, took out a $150m revolving credit facility
in December 2024. It was secured and undrawn as at 31 December 2025. 50% of
this facility is guaranteed by Entain Group. The likelihood of this being
called upon is considered remote.
Kentucky
Entain plc acquired Deis Ltd and its wholly-owned subsidiary, Avid
International Limited ("Avid") on 7 February 2022. At that time of
acquisition, Avid owned the sports betting brand ("Sports Interaction"), which
it had acquired from S.I.A. Limited ("SIA") on 1 November 2015.
In 2010, the Commonwealth of Kentucky ("KY") in the US sued certain gambling
businesses alleging that such businesses were offering online gaming
unlawfully to residents in Kentucky. It is alleged that S.I.A Limited operated
in Kentucky without a gaming licence throughout the period from 2008-2012. SIA
has been named in a civil lawsuit since 2014. Avid was then acquired by Entain
in 2022. Given that Entain is the current owner of Avid, KY is seeking to
pursue a successor liability claim on Entain amounting to $114m. Based on
legal advice, the Group does not believe this claim is valid and hence does
not believe any outflow is probable.
General Liability
The Group is subject to various legal, regulatory and other proceedings and
claims that arise in the normal course of business. These include, but are not
limited to, claims arising from contractual arrangements, tax matters,
consumer claims, employment-related issues and regulatory compliance.
Provisions are recognised where the Directors consider that it is probable
that an outflow of economic benefits will be required to settle an obligation
and where a reliable estimate can be made. Unless outflow is considered
remote, in cases where no provision is recognised, the matter is treated as a
contingent liability in accordance with IAS 37.
While it is not possible to predict the final outcome of all such matters, the
Directors, having taken appropriate legal and professional advice, do not
currently expect that the resolution of these matters will have a material
adverse effect on the Group's financial position, results or cash flows.
17 Subsequent events
No events have occurred subsequent to the end of the reporting period that
require adjustment or disclosure.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR SSLEDLEMSEED
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Entain
See all newsREG - Entain PLC - Final Results
AnnouncementREG - Entain PLC Barclays PLC - TR1: Notification of Major Holdings
AnnouncementREG - Entain PLC Barclays PLC - TR1: Notification of Major Holdings
AnnouncementREG - Entain PLC Barclays PLC - TR1: Notification of Major Holdings
AnnouncementREG - Entain PLC Barclays PLC - TR1: Notification of Major Holdings
Announcement