Entain rides global challenges as Australian business posts modest growth

Entain’s Australian online business grew net gaming revenue (NGR) by 1 per cent in the third quarter, a slowdown from the double-digit rebound the Ladbrokes and Neds owner reported earlier in the year, but a step forward on the slumps which characterised 2025.

The result for the three months to September 30 was measured year on year at constant currency. Entain said it was in line with expectations and that the business was lapping a tougher volume comparison from the second half of 2025.

The Australian online business had recorded NGR growth of 13 per cent across the first half of 2026, a result Entain put down to the reinvigoration of the business following major changes after AUSTRAC commenced enforcement action in December 2024, but that trajectory has slowed.

Across the group, NGR rose 2 per cent and online NGR 3 per cent. Online gaming grew 8 per cent, but sports NGR fell 3 per cent. During a World Cup year, customer-friendly football results in August and September more than offset a strong sports margin in July and Entain estimated the sports results created a drag of about 4 per cent on year-on-year online growth in the quarter.

The UK and Ireland were the growth engine. Online NGR there rose 14 per cent, ahead of expectations, on a 15 per cent lift in volumes. New Zealand, where Entain runs the TAB NZ brand under its partnership with TAB New Zealand, recorded double-digit online growth, as did Spain and Canada.

Brazil was the drag. NGR there fell 36 per cent before the Brazilian government announced an immediate ban on online gambling on September 25. International NGR fell 4 per cent overall. Excluding Brazil, group online NGR rose 5 per cent on volume growth of 7 per cent.

Chief executive Stella David was upbeat about the quarter.

“The underlying momentum we are seeing across our diverse portfolio supports our confidence in reiterating FY26 guidance. I am confident our disciplined focus on growth and optimisation will deliver strong future cash-generation, and that Entain remains well positioned to be a long-term industry winner,” she said.

David also warned the UK Government against raising gambling taxes further. “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,” she said.

Entain reiterated the FY26 guidance it revised on September 28, which assumes the Brazilian ban holds for the rest of 2026. It expects online NGR growth of 4-6 per cent, or the top end of its 5-7 per cent range excluding Brazil.

Underlying EBITDA, excluding parent fees, is forecast at the lower end of its £910 million to £960 million range, and online underlying EBITDA margin at the lower end of 21-22 per cent.