Entain
Website:
Entain
Index:
FTSE 100
EPIC: ENT
Supersector:
Travel and Leisure
Sector:
Travel and Leisure
Subsector:
Gambling
Market Cap:
£3.49B
Payout Frequency: Semi-Annual
Entain Dividend Analysis and Summary
Key dividend details
- Dividend declared: Second interim (FY25 final) of 9.8p per share (cash cost c. £63m)
- Total FY25 dividend: 19.6p per share (c. £125m), +5% YoY, aligned with the “progressive” policy
- Ex-dividend date: 12/03/2026
- Record date: 13/03/2026
- Payment date: 24/04/2026
- Frequency: paid in two equal instalments with H1 and FY results
- DRIP available (last date for elections: 31/03/2026)
Dividend sustainability and coverage
- Coverage looks reasonable: FY25 adjusted diluted EPS 61.8p vs total DPS 19.6p (implied payout c. 32%).
- FY25 Underlying EBITDA £1,160m (+8% cc); including 50% of BetMGM: £1,244m (+28% cc). FY25 adjusted cashflow £151m (ahead of expectations).
- Balance sheet: net debt £3,644m, leverage 3.1x (look-through 3.6x), liquidity >£900m; maturities extended after 2025 refinancing, supporting dividend capacity.
- Headwind: UK online gambling tax rises from 01/04/2026. Management expects to mitigate ~25% of the incremental burden in 2026 (Online EBITDA margin guided to 23–24% vs FY25 25.7%) and >50% from 2027.
- Medium-term support: BetMGM inflected to profit (FY25 EBITDA $220m) and $270m cash distributed to parents; Group reiterates =£500m adjusted cashflow from 2028.
Growth trajectory and outlook for the dividend
- DPS up +5% YoY in FY25; Board reiterates a progressive dividend policy.
- FY26 guidance: Online NGR (ex-US) +5–7% cc; Group EBITDA “comfortable” with consensus. Near-term margin pressure from UK tax likely tempers faster DPS growth in 2026, but mitigation plans, £100m+ annualised cost savings, and BetMGM cash generation underpin scope for ongoing modest DPS progression.
Capital allocation and structural considerations
- Efficiency programme delivering =£100m annual savings from 2026; intensified focus on cash generation.
- Refinancing: RCF extended to 2030; term loans repriced/extended; issued €500m 2031 notes @ 4.875%—improves duration and visibility for distributions.
- BetMGM profitability and cash distributions are a growing support for future dividends.
- Potential use of cash: £500m bridge facility in place for possible Entain CEE minority purchase—if executed, could raise leverage temporarily and compete with buybacks/dividend growth at the margin.
- Management changes: new CFO (effective 06/03/2026) – no stated change to dividend policy.
Risks and flags for dividend stability
- Regulatory/taxation: UK online tax increase from 01/04/2026; other market-specific changes (e.g., Belgium/Netherlands) continue to pose risk to cash flows.
- Legal/regulatory matters: AUSTRAC civil proceedings (provision maintained at c. AUD$100m); German/Austrian player claims (limited provisions to date); Greek tax appeal; shareholder litigation. Outcomes are uncertain and could be cash-consuming.
- Leverage: 3.1x (3.6x look-through) remains elevated versus some peers; deleveraging path and interest costs may cap dividend acceleration.
- Earnings quality: Statutory loss driven by impairments (non-cash) but signals pressure in UK/Belgium/ROI; sports-margin volatility can affect near-term cash generation.
Read more
Entain Annual Dividend Yield - 3.47%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 13/03/2025 |
25/04/2025 |
2nd Interim |
9.30p |
GBX |
| 21/08/2025 |
29/09/2025 |
Interim |
9.80p |
GBX |
Total (Annual Dividends Per Share):
19.10p
Dividend Yield =
Annual Dividends Per Share (19.10p)
÷ Share Price (550p)
= 3.47%
Entain Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/03/2026 |
24/04/2026 |
Final |
9.8000p |
GBX |
| 21/08/2025 |
29/09/2025 |
Interim |
9.80p |
GBX |
| 13/03/2025 |
25/04/2025 |
2nd Interim |
9.30p |
GBX |
| 15/08/2024 |
20/09/2024 |
Interim |
9.30p |
GBX |
| 14/03/2024 |
26/04/2024 |
2nd Interim |
8.90p |
GBX |
| 17/08/2023 |
22/09/2023 |
Interim |
8.90p |
GBX |
| 16/03/2023 |
27/04/2023 |
2nd Interim |
8.50p |
GBX |
| 18/08/2022 |
22/09/2022 |
Interim |
8.50p |
GBX |
| Year |
Interim |
Currency |
Total |
Change |
| 2024 |
9.300 |
GBX |
18.200 |
4.590 |
| 2023 |
8.900 |
GBX |
17.400 |
104.700 |
| 2022 |
8.500 |
GBX |
8.500 |
|
Entain Dividend Calculator
Entain Dividend Growth
| Dividend Growth (1Y) |
5.38%
|
| Dividend CAGR (5Y) |
18.19%
|
| Years of Growth |
3
|
| Payout Ratio |
–
|
| Buyback Yield |
-0.06%
|
| Shareholder Yield |
3.61%
|
| P/E Ratio (TTM) | – |
|---|
| Forward P/E | 8.15 |
|---|
| P/FCF | 7.81 |
|---|
| Earnings Yield | -19.08% |
|---|
| FCF Yield | 12.8% |
|---|
| ROE | -40.64% |
|---|
| ROCE | 7.73% |
|---|
| Profit Margin | -12.68% |
|---|
| Operating Margin | 10.21% |
|---|
| Gross Margin | 60.85% |
|---|