Entain shares surged over 5% after reporting underlying EBITDA of £1.16 billion for 2025, beating the top end of its guidance range. The sports betting group more than doubled its target for offsetting Britain's online gambling tax increase, now expecting to mitigate more than 50% of the burden through £50 million in additional cost savings. CEO Stella David expressed confidence in navigating regulatory challenges.

The company's 50/50 U.S. joint venture BetMGM delivered $2.80 billion in net revenue, jumping 33% year-on-year. BetMGM's EBITDA reached $220 million, a remarkable $464 million improvement from the previous year, allowing for the first cash distribution to parent companies. However, Entain reported a statutory loss after tax of £681 million due to impairments and regulatory provisions.

Entain guided for 5-7% online gaming revenue growth in 2026 while reaffirming its target of at least £500 million in annual adjusted cashflow from 2028. Morgan Stanley rates the shares "overweight" with a 1,150 pence target, describing the valuation as attractive given improving momentum across both U.S. and international operations.