Entain has shown significant recovery under its new CEO, Gavin Isaacs, amidst a challenging market environment.
An unscheduled update from Entain revealed continued positive momentum into the third quarter, fuelled by events such as the Euro 2024 football championships and the Paris Olympic Games. Shares in Entain, which had dropped over 40% earlier this year, rebounded by 33¾p, or 5.3%, closing at 673¼p following the announcement. This resurgence marks a reassuring start for Gavin Isaacs, who recently took over as CEO.
To support Isaacs during his transition, Stella David, the former interim CEO, will remain with the company until the end of the month before she assumes the role of chair, succeeding Barry Gibson. Entain’s focused strategy appears to be yielding results, with online net gaming revenue surpassing expectations in the second half of the year. The online sectors in the UK and Ireland experienced accelerated growth in both gaming and sports, driven by increased volumes and improved margins. Internationally, central and eastern European markets also performed well, while retail operations met expectations across all regions.
Entain is one of the largest sports betting and gaming groups globally, with a diverse portfolio of brands. Its gaming brands include well-known names like Foxy Bingo, Gala, Ninja Casino, Partypoker, and Partycasino. In addition, Entain operates TAB NZ through a strategic partnership and maintains a 50-50 joint venture in the US with BetMGM, which has recently introduced new live betting and bet slip features.
Recent developments also saw Ricky Sandler, an activist investor from Eminence Capital holding a 6.5% stake, joining Entain’s board following the abrupt departure of former CEO Jette Nygaard-Andersen last December. Sandler, who previously encouraged the board to consider selling parts of the BetMGM stake, has now taken a more collaborative approach. His aim is to create “lasting value for shareholders” during his three-year tenure as a non-executive director, although he is not classified as independent.
Isaacs is scheduled to meet with investors this week. Analysts at Jefferies have noted that his engagement with shareholders and the early positive momentum in his leadership are sending a “highly constructive message” to the market.
Overall, Entain’s early results under Gavin Isaacs’s leadership signal a promising direction for the company, supported by strategic initiatives and strong market performance.
