DAVY VIEW

Entain’s FY25 is in line with our expectations for revenue with aEBITDA slightly ahead. This concludes a much-improved year for Entain, where the online business delivered solid growth and BetMGM significantly improved performance. The guide for 2026 is in line with our forecasts, and there will be a benefit to 2027 forecasts from additional UK mitigation. Reiteration of the £500m free cash flow (2028) target is also important in the context of the UK tax headwinds. Trading on a double-digit free cash flow yield, we believe Entain’s valuation is attractive at current levels.