Entain (ENT) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 results exceeded expectations, with Group NGR up 9% (11% constant currency), driven by strong online performance, favorable sports results, and operational improvements.

• Online NGR including US grew 12% (15% cc), with UK & Ireland Online up 23% (cc), Brazil up 31% (cc), and BetMGM NGR up 34% (cc).

• U.K. online NGR surged 23% year-over-year, driven by volume growth and favorable sports margins.

• CEO Stella David appointed, providing leadership continuity and focus on operational excellence.

• Retail NGR increased 2%, in line with expectations, with digital channels now representing 75% of U.K. retail revenue.

Financial highlights

• Group NGR up 11% year-over-year in constant currency, with online up 15% and retail up 2%.

• BetMGM achieved record iGaming revenues (NGR up 27%) and record Online Sports NGR (up 68%), with Q1 EBITDA of $22m.

• UK & Ireland Online NGR outperformed expectations with 21% volume growth; Retail NGR in UK & Ireland declined 1% (cc).

• International online NGR up 4% (5% cc); Brazil up 31%, Italy up 7%, Australia down 8% due to adverse racing results.

• CEE region NGR up 13% (12% cc), led by SuperSport (Croatia) and STS (Poland).

Outlook and guidance

• Guidance for mid-single-digit online ex-U.S. NGR growth in constant currency reiterated for 2025.

• BetMGM expects FY25 revenue of $2.4–$2.5 billion and to be EBITDA positive.

• Confident in pathway to generating over £0.5 billion annual cash flow (pre-dividends) in the medium term.

• Q2 has started well, but tougher year-on-year comparators expected in H2, especially for BetMGM and Brazil.

• No change in capital allocation strategy; focus remains on long-term shareholder value.