Shares in Entain dropped 2% in midweek trading as the gambling giant reported slowing sales growth outside its powerhouse BetMGM US division. The FTSE 100 company’s stock fell to 823p per share following its third-quarter 2025 earnings release, which revealed a complex picture of regional performance across its global operations.
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Overall Financial Performance
Total net gaming revenue (NGR) increased 6% in the third quarter, or 7% on a constant currencies basis, including the company’s 50% stake in BetMGM. This growth rate represents a slowdown from the 10% recorded in the first half of 2025, indicating broader market challenges beyond the company’s control. Excluding the US joint venture, quarter three NGR improved 4% at headline level and 5% at stable exchange rates, reflecting the impact of regional economic conditions on international operations.
Regional Performance Breakdown
The company’s performance varied significantly across different geographic markets, with some regions showing strong growth while others faced substantial headwinds. Online NGR outside the United States rose 5% at headline level and 6% at constant currencies, though the company noted this growth “reflects continued underlying momentum despite customer friendly sports margins in September.”
In the UK and Ireland, NGR at constant currencies rose 8% during the third quarter, with Entain attributing this to “growth in players values driving strong volumes and further market share gains.” Online NGR in this region surged 15%, while retail NGR edged 2% higher, demonstrating the continued strength of digital transformation in established markets.
International markets excluding BetMGM showed more modest growth of just 1%, with the company noting that “online volume growth [was] largely offset by customer friendly sports results in September.” The performance breakdown showed online NGR rising 1% while retail NGR improved 6%, both measured at constant currencies.
Market-Specific Challenges and Opportunities
Brazil represented one of the most challenging markets, with Entain reporting that “adverse sports margins more than offset strong volume growth,” pushing sales 11% lower. Similarly, Australian NGR fell 6% at stable currencies, though this was partially offset by Italian NGR rising by the same percentage.
Despite these challenges, several markets delivered impressive results. The company highlighted that “double-digit online NGR growth [was] also delivered by Georgia, New Zealand, Spain, Canada, Austria and Greece,” indicating that strategic focus on specific international markets continues to yield positive results even amid broader headwinds.
BetMGM’s Standout Performance
BetMGM remains Entain’s standout division, with the joint venture between Entain and MGM Resorts International announcing further forecast-beating NGR revenues in quarter three. Net revenues soared 23% year on year to $667 million, demonstrating the continued strength of the US market and the effectiveness of the company’s strategic approach.
Entain attributed this success to “ongoing successful execution of BetMGM’s refined player engagement strategy supported by further enhanced product and user experiences delivered growth in player activity and retention.” The joint venture is now tipped to deliver net revenue of $2.75 billion in 2025, representing the third such upgrade this year after previous guidance in July pointed to net revenue of $2.7 billion.
Leadership Perspective and Future Outlook
Chief executive Stella David emphasized that “Entain’s transformation continues at pace, with our strategic execution and expanding bandwidth delivering growth across our portfolio.” She added that “while we still have more to do, our quarter three performance is further evidence of the quality of our diverse business and its underlying momentum.”
Regarding BetMGM’s performance, David noted that strong year-to-date results “is driven by our strengthened sports product and leading iGaming offering, coupled with refined player engagement.” She confirmed that the joint venture is now delivering sustainable profit growth and is tipped to make a $200 million cash distribution this year.
Financial Guidance and Market Context
Entain maintained its financial guidance, expecting online NGR to rise 7% at constant currencies and by mid-single-digits on a reported basis, in line with market forecasts. Group EBITDA estimates also remained unchanged at £1.1 billion to £1.15 billion, compared to earnings of £1.09 billion in 2024.
The company’s performance comes amid broader industry developments, including major transactions like Aligned Data Centers being sold to BlackRock and MGX and technological advancements such as Apple’s first M5 laptop in the 14-inch MacBook Pro. The gambling industry continues to evolve with increasing digital integration, mirroring trends in education where AI-native students increasingly use AI for schoolwork and technology security concerns highlighted by researchers exposing critical Android flaws. These developments occur alongside global regulatory considerations, including Japan asking OpenAI not to infringe on irreplaceable cultural assets.
Strategic Implications and Investor Response
The mixed quarterly results highlight both the strengths and challenges facing Entain as it navigates a complex global gambling landscape. While BetMGM continues to deliver exceptional growth, the slower performance in international markets underscores the importance of geographic diversification and the impact of regional economic conditions.
Investors appear to be weighing the strong US performance against the more modest international results, resulting in the 2% share price decline. However, the maintained guidance and BetMGM’s continued upward revisions suggest underlying business strength despite short-term market reactions. The company’s ability to maintain its EBITDA guidance while navigating challenging sports margins and currency fluctuations demonstrates resilient operational management.
