Entain said new UK gambling taxes will have a massive impact worth about £250 million, even as first-half trading remained strong. The Ladbrokes owner reported net gaming revenue up 5% in the six months to 30 June and underlying earnings of £479 million, down 2% but ahead of expectations.
In an earnings-call transcript, the company said online net gaming revenue rose 7%, while retail revenue increased 1%. UK and Ireland revenues were up 8%, with online growth of 13% helping offset the drag from shop closures.
The UK business was helped by gaming revenue growth of 13% and sports betting growth of 11%. Management said the sports arm was buoyed by an upgraded Bet Builder product and a good World Cup, while the World Cup also drove more first-time customers and greater use of accumulators.
The pressure on profits came from a higher remote gaming duty rate, which rose from 21% to 40% at the start of April. A new general betting duty is due next year, and Entain said the second half will face a full six months of the higher tax rate.
Stella David told the Press Association that the changes are still early but likely to cost around £250 million. She said the group has strong mitigation plans and remains committed to investing in the UK, where its shops are largely under the Ladbrokes and Coral brands and are valued by local communities. As covered in July, Entain had already begun a restructuring that will remove about 500 roles worldwide.
The company said adjusted cash flow improved to £43 million and kept its full-year EBITDA guidance unchanged. It also reiterated its £500 million cash-flow target for 2028, while shares rose 1.22% to $7.49 after the update.
