Entain PLC: BetMGM Q2 mixed; we expect focus on H2 EBITDA bridge

Research evidence excerpt

Entain PLC: BetMGM Q2 mixed; we expect focus on H2 EBITDA bridge

hy areas of results? 12/28E 89.47 79.88

A key theme of the release is narrative referring to regulatory complexity and an

increasingly competitive environment, including reference to prediction markets. Ben Shelley, ACA

AnalystBetMGM are responding by playing to their strengths: "leveraging our market leading

ben.shelley@ubs.com

iGaming offering across multi-product states, our omnichannel advantage in Nevada,

+44-20-7568 3957

and serving our higher-value customers."

Jarrod Castle, CFA

AnalystQ: How would we expect investors to react?

jarrod.castle@ubs.com

Overall, we view the print as somewhat mixed in our view: +44-20-7568 8883

Q2 is light on top line expectations, albeit it looks like some of this can be Artem Prokopets

attributed to retail with online more in line (-2% vs UBSe). Q2 EBITDA is below Analyst

consensus, however, we would flag is above UBSe and broadly in line with the artem.prokopets@ubs.com

+44-20-7901 5625 phasing commentary on the Q1 call.

FY26 EBITDA guidance has been reiterated and is broadly in line with consensus

and UBSe. FY26 revenue guidance has been refined downwards and implies

downside to UBSe and cons.

We think investors will be focused on the building blocks of H2 EBITDA delivery

given guidance relies on materially stronger drop through in the second half.

Highlights (£m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 4,796 5,090 5,259 5,062 5,293 5,534 5,722 5,991

EBIT (UBS) 642 617 861 725 930 1,041 1,168 1,363

Net earnings (UBS) 271 301 280 487 504 586 684 831

EPS (UBS, diluted) (p) 43.94 46.64 43.40 75.19 77.40 89.47 103.78 125.38

DPS (net) (p) 17.80 18.60 19.60 20.58 21.61 22.69 23.82 25.02