Entain To Exit FTSE 100 After Decline In Market Value

FTSE Russell has confirmed that Entain will leave the FTSE 100 after a fall in its market capitalisation. The Ladbrokes Coral owner, valued at around £3.31bn, has the lowest market cap in the index.

Entain and housebuilder Persimmon will be removed from the FTSE 100 at the close of trading on 18 September to enter the FTSE 250 on 21 September. They will be replaced by Ithaca Energy and EasyJet.

The move ends a six-year period in the FTSE 100 for Entain, which joined the index in June 2020. Its shares rose after entry, climbing from around £7.60 to £18 within a year to reach a peak of £21.56 in October 2021.

Currently, the stock trades at around £5.23, a 75% decline from the prior high.

Share-price pressure has intensified over the past year

Entain’s shares have been falling for a year, with higher gambling taxes in the UK among the pressures weighing on investor sentiment. 

At the end of July, BetMGM, jointly owned by Entain and MGM Resorts International, said it expected full-year net revenue and adjusted EBITDA to land at the lower end of its guidance ranges. This update triggered a decline in Entain’s share price.

Furthermore, its corporate tax charge increased to £57.8m from £19.5m, while Remote Gaming Duty rose from 21% to 40%. Entain has warned policymakers that tougher regulation and taxation could strengthen the black market.

Management remains focused on market share and recovery

Despite the pressure, Entain’s net gaming revenue increased 5% to £2.55bn, benefiting from the 2026 World Cup’s early stages.

Chief Financial Officer Michael Snape has said the company is gaining market share as mid-tier operators struggle with the higher tax environment. It reported a widening net loss of £681m in FY25 and the closure of betting shops.

Management will be focused on improving profitability and protecting market share to rebuild investor confidence. A share price recovery would be needed for Entain to regain FTSE 100 status. 

Entain’s FTSE 100 exit reflects how quickly investor confidence can weaken despite growing revenue and market share. Now, the company must prove it can remain profitable despite the  higher taxes, losses and BetMGM results.