GICS Sector : Consumer Cyclical
Entain PLC operates as a sports-betting and gaming company.The company provides online betting, casino, poker, and bingo services through mobile and web under the bwin; online and multi-channel betting under the Ladbrokes; street and online betting under the Coral; sports betting, casino, game, and poker under the Sportingbet; online bingo, sportsbook, casino, and poker access under the Betboo; and sports betting, poker, and casino games under the Crystalbet brands, as well as Gamebookers, a full-service sportsbook.It also offers software and technology for race book and sportsbook under the Stadium; online sports betting, casino, and gaming under the Eurobet; sports action and horse racing under the Neds; online bingo under the Gala Bingo; casino and live casino under the Gala Casino; virtual sports under the AGT brands, as well as partypoker, which provides online poker; PartyCasino that provides online casino; and Gala Spins, a gaming application.
Entain's 2025 results show a strong financial performance with EBITDA of GBP 1.16 billion, up 8% year-on-year, and total group EBITDA, including BetMGM, of GBP 1.244 billion, up 28%. The company's online volumes grew 7% year-on-year, with 7 consecutive quarters of revenue growth online. The actual EPS came out at '-0.8887' relative to estimates at '0.2931', indicating a significant miss. Despite this, the company's adjusted cash flow improved to GBP 151 million, ahead of expectations.
Publication Date: Mar -07
The UK, Spain, Canada, Greece, Georgia, and New Zealand showed strong double-digit growth, while BetMGM produced an excellent year of strong and profitable growth with 34% growth in online revenue. The company's diversified portfolio, with 97% of revenue from markets estimated to grow at least by mid-single-digit CAGR, drove revenue growth.
For 2026, Entain expects online NGR growth of 5-7% and online EBITDA margin of 23-24%. The company aims to mitigate approximately 25% of the UK tax impact in 2026 and over 50% from 2027 onwards. Analysts estimate next year's revenue growth at 4.1%. The company's guidance for 5-7% growth comes from a uniform improvement across segments, with international, UK, Australia, and Brazil expected to perform better.
Entain's current valuation metrics are as follows: P/E Ratio at -5.6, P/B Ratio at 4.2, P/S Ratio at 0.71, EV/EBITDA at 6.02, Dividend Yield at 2.85%, Free Cash Flow Yield at 14.72%, ROIC at 7.62%, and ROE at -57.07%. The Net Debt / EBITDA ratio is -0.36, indicating a healthy debt position. The EV/EBITDA ratio of 6.02 suggests that the company's valuation is reasonable compared to its earnings.
Entain's strategic priorities now focus on cash generation and disciplined capital allocation, with a goal to deliver at least GBP 500 million in annual adjusted cash flow from 2028. The company aims to offset over 50% of the UK tax increases from 2027, up from 25% previously. The optimization plan, effective from 2027, brings together various initiatives to improve efficiency, including payment service providers, automation, and AI.
The company believes the worst may be behind it in terms of regulation, but challenges remain, particularly in the Netherlands, where high taxes and friction regulations fuel the black market. There are also potential positive developments in Germany, where the slots cap may increase, currently driving 70-80% of the market to the black market. Entain's diversified portfolio provides resilience to absorb regulatory changes.
Monday's rally in Entain and Flutter may not survive contact with reality
Mar -23
Brokerages Set Entain Plc (LON:ENT) Price Target at GBX 1,113.80
Jan -26
Entain (LON:ENT) Insider Ricky Sandler Acquires 621,384 Shares of Stock
Jan -06
FTSE 100 Live: London blue-chips flat as Entain and ABF lead fallers
Dec -11
FTSE 100 Live: Blue-chip index flat; banks and builders on the march
Nov -27
Gambling tax rise puts a chill on Flutter and Entain
Nov -27
FTSE 100 Live: London index dragged down by ex-divs and tobacco stocks
Nov -27
FTSE 100 Live: London index dragged down by ex-divs, bookies Budget warnings
Nov -27
Entain Plc's Photovoltaics Inverters segment growth of 3.5% is driven by increasing adoption of renewable energy sources, government incentives for solar power, and declining costs of photovoltaic systems. Additionally, growing demand for energy storage and grid parity in key markets contribute to the segment's growth.
Entain Plc's Industrial Service segment growth of 3.8% is driven by increasing demand for online gaming, strategic partnerships, and expansion into new markets. Additionally, investments in digital transformation, improved customer experiences, and a strong brand portfolio have contributed to the segment's growth.
Entain Plc's Industrial Automation segment growth of 4.2% is driven by increasing demand for efficient manufacturing processes, adoption of Industry 4.0 technologies, and rising need for predictive maintenance. Additionally, growing investments in robotics, artificial intelligence, and IoT solutions are contributing to the segment's growth.
Entain Plc's 4.5% growth is driven by its diversified online betting and gaming portfolio, strong brand presence, and strategic expansion into new markets. Additionally, the company's focus on technology innovation, customer engagement, and responsible gambling practices have contributed to its growth momentum.
Entain Plc's 3.2% growth in 'Other' segment is driven by increasing demand for non-gaming products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer engagement, and retention has contributed to the growth. Furthermore, the rise of online platforms and digitalization have also played a significant role in driving growth in this segment.
Entain Plc offers sports betting services, allowing customers to place bets on various sports events and tournaments.
Entain Plc provides an online casino platform, offering a range of games such as slots, roulette, and blackjack.
Entain Plc offers online poker services, allowing customers to play poker games against other players.
Entain Plc provides online bingo services, offering a range of bingo games and rooms.
Entain Plc offers gaming technology solutions, providing software and services to other gaming companies.
Entain Plc operates in the online gaming industry, where substitutes are readily available. However, the company's strong brand recognition and loyalty programs help to mitigate the threat of substitutes.
Entain Plc's customers have a high bargaining power due to the ease of switching to competitors. The company's pricing strategy and loyalty programs are crucial in retaining customers.
Entain Plc has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's scale of operations also gives it negotiating power over suppliers.
The online gaming industry has moderate barriers to entry, and new entrants can easily enter the market. However, Entain Plc's established brand and regulatory compliance expertise provide a competitive advantage.
The online gaming industry is highly competitive, with many established players. Entain Plc competes with other major players, and the company's marketing and product strategies are crucial in differentiating itself.
| Value | |
|---|---|
| Debt Weight | 60.15% |
| Debt Cost | 6.37% |
| Equity Weight | 39.85% |
| Equity Cost | 10.14% |
| WACC | 7.87% |
| Leverage | 150.96% |
Value: 4.9
Growth: 7.1
Quality: 5.8
Yield: 7.5
Momentum: 2.0
Volatility: 6.7
1-Year Total Return ->
Value: 3.0
Growth: 6.7
Quality: 6.2
Yield: 1.2
Momentum: 6.0
Volatility: 8.0
1-Year Total Return ->
Value: 5.9
Growth: 3.3
Quality: 4.6
Yield: 8.8
Momentum: 2.5
Volatility: 4.0
1-Year Total Return ->
Value: 9.4
Growth: 3.2
Quality: 1.5
Yield: 1.2
Momentum: 8.0
Volatility: 1.3
1-Year Total Return ->
Value: 5.6
Growth: 4.1
Quality: 2.2
Yield: 3.1
Momentum: 3.0
Volatility: 3.3
1-Year Total Return ->
Value: 0.6
Growth: 9.9
Quality: 7.2
Yield: 0.0
Momentum: 2.0
Volatility: 1.3
1-Year Total Return ->