Entain has maintained its full-year 2026 financial guidance after reporting a 2% increase in third-quarter net gaming revenue (NGR), supported by strong results in the UK and Ireland despite declining revenue in Brazil.

The Ladbrokes and Coral owner recorded 3% growth in online NGR for the three months ending September 30. Excluding Brazil, online revenue increased 5%, while gaming revenue across the group rose 8%.

The results reflect differing conditions across Entain’s markets, with stronger domestic performance compensating for regulatory difficulties and unfavourable sports betting outcomes elsewhere.

CEO Stella David commented:

“I am pleased with our Q3 performance which reflects the strength of our execution and reinforces the resilience of our globally scaled business as well as its ability to consistently deliver high-quality growth.”

UK and Ireland Lead Quarterly Performance

Entain’s UK and Ireland division reported an 8% increase in NGR, exceeding company expectations.

Online revenue climbed 14%, driven by 17% growth in gaming and a 3% rise in sports betting. Online volumes increased 15%, while retail operations recorded a more modest 1% improvement.

The company attributed the division’s performance to continued investment in its established brands, including Ladbrokes and Coral.

However, Entain faces additional costs following the increase in UK Remote Gaming Duty introduced in April.

David has warned against further gambling tax increases, arguing that higher financial obligations could threaten betting shops and employment across the sector.

The company’s concerns come as the UK Government considers additional taxation measures affecting gambling operators.

Brazil Restrictions Affect International Revenue

Entain’s international division experienced a 4% decline in NGR, largely because of a 36% reduction in Brazilian revenue.

The company had already faced increasing competition in Brazil and reduced marketing expenditure before the government introduced an immediate ban on online betting and gambling in September.

The regulatory change disrupted Entain’s plans for Sportingbet, previously considered a potential growth driver in the country.

Other international markets produced mixed results.

Australia recorded 1% online NGR growth, meeting company expectations, while New Zealand, Spain and Canada achieved double-digit increases.

Entain operates Ladbrokes and Neds in Australia, where forthcoming advertising reforms may influence future trading conditions.

In New Zealand, the group manages TAB NZ under a 25-year agreement and is preparing to participate in the country’s planned regulated online casino market.

Italy reported a 6% revenue decline despite a 9% increase in betting volumes. Customer-friendly football results in August and September reduced sportsbook margins, partially offsetting the benefits of the FIFA World Cup.

Entain is also withdrawing from Central and Eastern Europe through a planned sale to EMMA Capital. The region recorded 4% online NGR growth, although retail revenue declined 22%.

Entain Reaffirms Earnings and Cash Flow Targets

As Proactive reports, following the quarterly results, Entain retained its forecast of 4% to 6% online NGR growth at constant currencies for 2026.

Excluding Brazil, management expects growth toward the upper end of its 5% to 7% range.

Underlying EBITDA remains forecast between £910 million and £960 million, with the company anticipating a result near the lower end. Its online EBITDA margin is also expected toward the bottom of the 21% to 22% guidance range.

Entain’s US joint venture BetMGM maintained its annual revenue forecast of US$2.9 billion to US$3.1 billion and adjusted EBITDA guidance of US$300 million to US$350 million. Both figures are expected toward the lower end of their ranges.

The group also reaffirmed its target of £500 million in annual adjusted cash flow by 2028.

Entain’s shares fell approximately 2.3% to £4.34 following the announcement, adding to a year in which the company’s share price has declined around 44%. The operator exited the FTSE 100 in September.