Entain Revenue Rises 2% as UK Growth Offsets Brazil Slump

Entain (LSE: ENT) reported a 2% increase in net gaming revenue (NGR) for Q3 2026, as strong UK growth helped offset a steep downturn in Brazil and unfavorable sports betting results. In its Q3 2026 trading update, strong results in the UK and Ireland helped offset a disappointing performance elsewhere. (Image: Entain) In a trading update, the Ladbrokes and Coral owner reported a 3% increase in online NGR during the quarter ending September 30. Online casino revenue grew 8%, while sports betting NGR declined 3%. Entain maintained its FY2026 guidance, forecasting online NGR growth of 4% to 6%. It said underlying EBITDA would fall at the lower end of the £910 million ($1.22 billion) to £960 million ($1.29 billion) range. CEO Stella David expressed confidence in the company’s performance. “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,” she said. “The underlying momentum we are seeing across our diverse portfolio supports our confidence in reiterating FY26 guidance.” UK Growth Offsets Brazil Troubles Entain’s UK and Ireland business was the standout performer during the quarter. Online NGR rose 14%, ahead of management expectations. Online gaming revenue increased 17%, while sports betting revenue grew 3%. The company also reported 15% growth in underlying online volumes, which it said was the result of a gain of market share. The strong performance in the UK and Ireland contrasted with international markets, where NGR declined 4%. Brazil, where Entain operates its Sportingbet brand, was particularly challenging, with revenue down 36% during Q3. The country’s recently introduced online gambling ban came into effect during the final days of the quarter. But the company said the decline primarily reflected “disciplined marketing and player engagement in an increasingly challenging market.” It added that future guidance was made with the assumption Brazil’s betting ban remains in place for the rest of 2026. In a later earnings call with analysts, David said that her “best guess” was that the Brazil market would reopen in “some form or another.” She added that Sportingbet’s “long-term brand equity” would put the company in a strong position should the ban be overturned. Elsewhere, Italian NGR fell 6%, despite 9% growth in underlying volumes. Entain blamed unfavorable football results for reducing sports betting margins. There was better news from New Zealand, Spain and Canada, which all returned double-digit online growth. Entain CEO Warns UK Tax Hikes Could Threaten Betting Shops Despite the strong UK performance, David issued a warning to the British government over the potential consequences of further gambling tax increases. “Both online and retail are important parts of our business and valued contributors to tax revenues and local communities,” she said. “We strongly urge the UK government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods.” The comments come as Entain continues to navigate an increasingly challenging domestic tax environment. Its UK and Ireland retail operations reported 1% NGR growth during Q3, although like-for-like revenue increased 3% when excluding store closures. David also emphasized the company’s longer-term financial ambitions. “I am confident our disciplined focus on growth and optimization will deliver strong future cash-generation, and that Entain remains well positioned to be a long-term industry winner,” she said. Meanwhile, Entain’s US joint venture BetMGM reaffirmed its FY2026 revenue guidance of $2.9 billion to $3.1 billion. The company also confirmed that it expects to complete the sale of an initial 20% stake in its Central and Eastern European business to EMMA Capital during Q4 2026. The post Entain Revenue Rises 2% as UK Growth Offsets Brazil Slump appeared first on Casino.org.