Entain Sees FY26 Results at Lower End of Guidance After Brazil Ban

Entain plc said in a regulatory announcement on 28 September 2026 that it is maintaining its full-year earnings guidance despite Brazil’s provisional ban on online betting, reconfirming FY26 Group Underlying EBITDA of between £910 million and £960 million while stating that it now expects to finish towards the lower end of both that range and its Online margin guidance.

The sports betting and gaming group released the statement through a regulatory information service.

The Brazilian Measure

On 25 September 2026, an executive measure was published in Brazil that provisionally withdraws all operators’ authority to operate online sports betting and gaming with immediate effect, according to the announcement. The provisional measure requires Congressional approval within a 120-day period to remain valid thereafter, and Congress may reject, approve or make amendments to it. Entain said the longer-term outcome is therefore likely to remain uncertain during this period.

Entain said its operations in Brazil are complying with the provisional measure.

The company said it was “disappointed by this sudden development without consultation of industry stakeholders regarding its significant adverse consequences.”

Guidance Reconfirmed

Reflecting what it described as the strength of its globally diverse portfolio, Entain reconfirmed FY26 Group Underlying EBITDA guidance of between £910 million and £960 million and Online Underlying EBITDA margin guidance of 21% to 22%. The company said it now expects to be towards the lower end of both ranges due to Brazil’s provisional executive measure, assuming the immediate ban is upheld for the remainder of 2026.

Excluding Brazil, Entain said it remains on track to deliver FY26 Online Net Gaming Revenue (NGR) growth at the top end of its guidance of 5% to 7% on a constant currency basis. Including Brazil, it now expects FY26 Online NGR growth of 4% to 6% on a constant currency basis, reflecting Brazil’s year-to-date performance and the same assumption that the ban remains in force for the rest of 2026. The company calculates constant currency growth by translating both current and prior year performance at 2026 exchange rates.

Brazil’s Weight and Recent Trading

Entain said it had expected Brazil to represent approximately 5% of the Group’s Online NGR in FY26, although its EBITDA contribution was expected to be modest given what the company described as a challenging and highly competitive operating environment.

The reconfirmed guidance was first stated at Entain’s H1-26 interim results on 13 August 2026, excluding BetMGM parent fees and with the group’s Central Eastern Europe business reported as discontinued operations. At those interims, Entain reiterated FY26 Online NGR growth guidance of 5% to 7% on a constant currency basis and said it remained comfortable with market expectations for FY26 Group Underlying EBITDA excluding parent fees, in line with the midpoint of the £910 million to £960 million range. Company-compiled consensus for FY26 Group EBITDA stood at £934 million as at 17 July 2026, according to the interim statement.

The August results showed first-half Group NGR up 5% on a constant currency basis, with Online NGR up 7% and an Online Underlying EBITDA margin of 21.4%. Group Underlying EBITDA of £479 million was down 2% year on year, which the company said reflected NGR outperformance more than offset by the impact of the increased UK online gambling tax.

The interim statement also documented the pressure the Brazil business was already under before the executive measure. Entain reported Brazil NGR down 25% on a constant currency basis in the first half, reflecting what it called a highly adverse first-quarter sports margin. The company said the market had remained intensely competitive and highly promotional since Brazil’s licensed sports betting and gaming regime launched at the start of 2025, with existing operators and new entrants continuing to spend aggressively, particularly during the Men’s World Cup tournament. First-half sports wagers in Brazil rose 10% on a constant currency basis, and Entain said the strength of its Sportingbet brand, supported by a localised offering, remained central to its improving player metrics across both sports and gaming.

Entain said it will continue to monitor the situation and will provide updates as appropriate. James Morris, Company Secretary, was named as the person responsible for releasing the 28 September announcement, which was classified as inside information under the Market Abuse Regulation as it forms part of English law.

The group’s published financial calendar lists a Q3-2026 Trading Update for 15 October 2026.