Entain reports Q1 2026 revenue growth and maintains outlook

Entain has reported a measured but stable start to 2026, with group net gaming revenue rising by 3% year on year during the first quarter on a constant currency basis. The performance reflects steady operational momentum across its digital portfolio, supported by increased customer engagement and higher betting volumes, even as external factors such as sports margins created some headwinds.

The company emphasized that trading during the period remained consistent with internal expectations. On that basis, it confirmed that its full-year outlook remains unchanged, projecting online revenue growth in the range of 5% to 7%. This reaffirmation suggests confidence in the underlying strength of its business model, particularly in online gaming and sports betting, which continue to represent the core drivers of revenue.

Online operations continue to drive growth

Online activity once again proved to be the backbone of Entain’s quarterly performance. Net gaming revenue from digital channels increased by 5% during the first three months of the year. Within this segment, gaming stood out as the primary contributor, posting a 9% rise compared to the same period last year.

This growth in gaming helped offset a slight decline in online sports revenue, which fell by 1%. The decrease was not due to a lack of customer engagement. On the contrary, total wagers increased by 11%, indicating strong user participation. However, the company experienced lower sports margins, meaning that payouts to customers were relatively higher than expected, thereby reducing net revenue.

Across the group, overall volumes rose by 8%, reinforcing the observation that demand remains robust. The figures indicate that customer activity continues to expand across multiple markets and product categories, even in less favorable margin conditions.

Retail segment faces margin pressure

While online operations showed resilience, the retail segment encountered more challenging conditions. Retail revenue declined by 3% year on year, reflecting the impact of unfavorable sports results during the quarter. These outcomes limited profitability despite ongoing customer engagement.

Importantly, retail volumes increased by 3%, suggesting that the decline in revenue was not driven by reduced foot traffic or customer interest. Instead, it stemmed primarily from margin pressure, particularly in sports betting, where outcomes favored customers more than operators.

This distinction highlights a broader trend in the betting industry, where short-term fluctuations in sports results can significantly influence financial outcomes without necessarily indicating underlying weakness in demand.

Strong performance in the UK and Ireland

The United Kingdom and Ireland emerged as one of the strongest performing regions for Entain during the quarter. Total revenue in this market rose by 6%, supported by a 13% increase in online revenue.

The company attributed this growth to continued momentum across both gaming and sports segments, as well as ongoing gains in market share. The online channel, in particular, benefited from product improvements and sustained customer engagement.

Retail performance in the region was more mixed. Revenue declined slightly by 1%, although gaming revenue within retail locations increased by 2%. Volumes were also up by 4%, indicating that customer activity remained healthy even as margins softened.

Overall, the UK and Ireland continue to represent a key pillar of Entain’s global operations, providing both scale and stability.

Australia delivers above expectations

Australia stood out as another strong contributor to quarterly growth. Revenue in the market increased by 12%, exceeding the company’s internal expectations.

This performance reflects a combination of effective customer acquisition strategies and strong engagement among existing users. Australia remains a highly competitive and regulated market, making the reported growth particularly notable.

The positive results from Australia helped offset more subdued performances in other international markets, reinforcing the importance of geographic diversification in Entain’s business strategy.

Mixed trends across international markets

Outside its core regions, Entain experienced more varied results. Overall international revenue grew by 1%, with online revenue increasing by 2% while retail declined by 4%.

In several markets, including Brazil and Italy, customer-friendly sports results had a negative impact on revenue. Despite a 9% increase in betting volumes, the outcomes of sporting events led to lower margins, reducing the financial contribution from these regions.

Central and Eastern Europe presented additional challenges. Revenue in the region declined by 6%, with online down by 1% and retail falling sharply by 30%. The company noted that while Poland benefited from migration to the CEE SuperSport platform, the broader regional performance was affected by football-heavy trading patterns and weaker sports margins.

A particularly notable decline was observed in Croatia, where year on year comparisons highlighted a significant deterioration in margin conditions. These regional variations underline the complex and dynamic nature of international betting markets.

BetMGM contributes to overall growth

BetMGM, Entain’s joint venture in the United States with MGM Resorts International, delivered a solid performance during the first quarter.

BetMGM reported net revenue of $696 million, representing a 6% increase compared to the same period last year. Growth was driven by both major segments, with iGaming revenue rising by 9% and online sports increasing by 4%.

Adjusted EBITDA for the quarter reached $25 million, indicating improved operational efficiency and profitability. Both iGaming and sports betting contributed positively to this result, reflecting the continued maturation of the US market.

However, BetMGM has revised its full-year outlook. The joint venture now expects total revenue for 2026 to fall within the range of $2.9 billion to $3.1 billion. Adjusted EBITDA is projected to be toward the lower end of the previously stated range of $300 million to $350 million.

Despite this adjustment, Entain noted that BetMGM remains an important component of its global growth strategy.

Full-year guidance remains unchanged

Despite facing margin pressure in sports betting and mixed performance across international markets, Entain has reiterated its full-year guidance.

The company continues to expect online revenue growth of 5% to 7% on a constant currency basis. It also confirmed that it remains comfortable with current market expectations for group underlying EBITDA in 2026.

In addition to its near-term outlook, Entain reaffirmed its longer-term financial targets. The company aims to generate at least £500 million in annual adjusted cash flow by 2028, a goal that reflects its focus on sustainable growth and operational efficiency.

Management indicated that current trading conditions are consistent with this trajectory, supported by strong customer activity and continued expansion in online gaming.

Strategic outlook and industry context

The first quarter results highlight both the opportunities and challenges facing large international betting operators. On one hand, digital transformation continues to drive growth, with online gaming and sports betting attracting increasing levels of engagement.

On the other hand, the industry remains highly sensitive to external variables such as sports results, regulatory changes and regional market dynamics. The impact of customer-friendly outcomes during the quarter illustrates how quickly margins can fluctuate.

Entain’s diversified portfolio helps mitigate some of these risks. By operating across multiple geographies and product segments, the company is better positioned to absorb localized volatility and maintain overall stability.

Furthermore, its ongoing investments in technology, product development and market expansion are expected to support long-term growth.

Conclusion

Entain’s first quarter performance for 2026 presents a picture of steady progress rather than rapid acceleration. The company achieved modest revenue growth, driven primarily by strong online engagement and increased customer activity. At the same time, it navigated a challenging margin environment, particularly in sports betting, where outcomes did not favor operators.

The decision to maintain full-year guidance reflects a measured level of confidence in the business. While certain regions experienced pressure, others delivered strong results, demonstrating the value of geographic diversification.

Looking ahead, Entain appears well positioned to continue its growth trajectory. Its focus on digital channels, combined with strategic partnerships such as BetMGM, provides a solid foundation for future expansion. However, as the first quarter has shown, performance will continue to depend not only on operational execution but also on external factors inherent to the betting industry.

Overall, the company’s results suggest resilience and adaptability in a complex market environment, with a clear emphasis on sustaining long-term value creation while managing short-term volatility.

FAQs

What was Entain’s revenue growth in Q1 2026?
Entain reported a 3% year on year increase in net gaming revenue on a constant currency basis.

What drove Entain’s growth in the first quarter?
Growth was mainly driven by increased online activity and higher customer volumes rather than favorable sports outcomes.

How did online operations perform?
Online net gaming revenue increased by 5%, with gaming rising 9% and sports declining slightly due to weaker margins.

Why did sports revenue decline despite higher wagers?
Sports revenue declined because margins were lower, meaning payouts to customers were higher than usual.

How did the retail segment perform?
Retail revenue fell by 3%, although volumes increased by 3%, indicating stable customer demand.

Which regions performed best for Entain?
The UK and Ireland and Australia were the strongest regions, showing solid revenue growth and customer engagement.

What challenges did international markets face?
International markets were affected by customer-friendly sports results and weaker margins in regions such as Brazil Italy and Central Europe.

What is BetMGM’s role in Entain’s business?
BetMGM is Entain’s US joint venture and contributed to overall growth with increased revenue and positive EBITDA.

Has Entain changed its full-year guidance?
No, Entain maintained its expectation of 5% to 7% online revenue growth for 2026.

What are Entain’s long-term financial goals?
The company aims to generate at least £500 million in annual adjusted cash flow by 2028.