Entain’s revenue rises despite a shutdown in Brazil and warnings in the UK

Despite anticipating solid growth potential for its Sportingbet brand in Brazil prior to the sudden online betting ban in the country, Entain’s Q3 financials suggest the firm will do just fine without the Brazilian market. The FTSE 250 gambling multinational’s Q3 earnings report claims that Q3 online net gaming revenue (NGR) would have risen 5% if Brazil was excluded from reporting. With Brazil included, online NGR rose 3% year-over-year in Q3 this year. Though Entain has cited “ongoing challenges” related to President Lula da Silva’s decision to ban all online betting and gambling in late September, the company remains confident in achieving previously outlined end-of-year targets. Entain leadership expects online NGR growth of between 4-6% and underlying EBITDA to fall in the lower end of a range of £910m-£960m. If Brazil and the challenges associated with it were excluded, the firm would expect online NGR to be in the 5-7% range. Stella David, Entain’s Chief Executive Officer, said: “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.” Has Brazil been weighing Entain down? Overall, Entain’s group-wide NGR rose 2% against Q3 2025. When it comes to reporting group finance, the firm splits its operations into two segments – UK and Ireland (UKI) on one side, and International on the other. It is worth noting that these results come from a time in which the 2026 World Cup knockout stage occurred. Entain’s UKI business has offset declines in various other parts of the business so far in 2026, and Q3 was no different. Largely driven by the heritage Ladbrokes and Coral brands, UKI NGR increased by 8% – ahead of expectations – following the firm’s “strategic execution and investment in the UK”. Online was the key driver, up 14%, while retail NGR rose marginally (1%). The firm will inevitably be subject to a substantial tax bill in the market due to April’s increase in Remote Gaming Duty (RGD), however. International NGR was down 4%, and the firm noted that the Brazil shutdown has had a pretty significant impact. Brazilian NGR was down 36%, having been impacted by an “increasingly challenging market” even prior to Lula’s betting ban last month. Entain’s other major international markets are Australia, where it runs the Ladbrokes and Neds brands, and New Zealand, where it has exclusive rights to sports betting as a 25-year operator of the TAB NZ – it is also planning to expand into the forthcoming online casino market. Australian online NGR was up 1%, in line with company expectations. Time will tell as to whether a series of reforms coming into effect over the next few months, largely targeting advertising, will have on its performance there in 2027. Another key revenue driver is the Italian market, where Entain operates the Eurobet brand, but NGR there was down 6% after 9% volume growth was offset by “customer friendly football results”. These football results in August and September are said to have gone some way to cancelling out what was a strong finish to the World Cup across the group. The group has discontinued its Central and Eastern Europe (CEE) operations as it divests that segment of the business to EMMA Capital in a deal valuing it at around £1.9m. Entain has been a major player in CEE via its STS and SuperSport brands, but with the region throwing up headwinds in various markets, a phased withdrawal has been planned. Online NGR in CEE rose by 4%, but retail took a huge hit, dropping by 22%. It comes as various operators in CEE weigh up the pros and cons of having a retail empire. Taking on tax Entain remains in an unenviable position when it comes to tax and regulation. Many of its main markets mentioned above, including the UK, Australia and Brazil – which has had its gambling market abolished – are presenting all kinds of challenges. The company is also heavily in the public eye due to its listing on the London Stock Exchange. It was relegated from the FTSE 100 last month and its share price has plummeted by 44% in 2026. On the back of today’s Q3 announcement, Entain’s stock has dipped by 2.3% to £4.34, continuing the downward trend. Entain remains at the taxman’s mercy, but the company’s NGR continues to grow. And while it still faces substantial headwinds, which will impact its bottom line, the results show that the business is still capitalising on opportunities arising in several of its markets. Article coauthored by Patrick Killeen and Ted Orme-Claye