Entain has reported a resurgence in its online gambling sector, largely attributed to the strategic actions of its new CEO, Gavin Isaacs, who took office last week. This development comes as a significant rebound for the company, which has seen its shares rise by 5.3% following the announcement.
The company’s unscheduled update indicated positive momentum continuing into the third quarter, driven by increased engagement from events such as the Euro 2024 football championships and the Paris Olympic Games. Shares in Entain, which had plummeted over 40% this year, rebounded by 33¾p, or 5.3%, to close at 673¼p following the announcement. This strong showing offers a reassuring start for Gavin Isaacs, who took the helm as CEO last week.
To support Isaacs during his transition, former interim CEO Stella David will remain with the company until the end of the month before assuming the role of chair, succeeding Barry Gibson. Entain’s focused strategy has borne fruit, with its online net gaming revenue exceeding expectations in the second half so far. The UK and Ireland online sectors saw accelerated growth in gaming and sports, benefiting from increased volumes and improved margins. Internationally, central and eastern European markets also performed well, while retail operations met expectations across all regions.
Entain, one of the largest sports betting and gaming groups globally, boasts a diverse portfolio of brands. The group also runs TAB NZ through a strategic partnership and holds a 50-50 joint venture in the US with BetMGM, which has recently introduced new live betting and bet slip features.
Ricky Sandler, an activist investor from Eminence Capital who holds a 6.5% stake, has recently joined Entain’s board following the sudden exit of former CEO Jette Nygaard-Andersen last December. Sandler had previously urged the board to consider selling parts of its BetMGM stake but has since adopted a more collaborative approach, aiming to create “lasting value for shareholders” during his three-year tenure as a non-executive director, though he is not classified as independent.
Isaacs is set to meet with investors this week, with analysts at Jefferies noting that his engagement with shareholders and the early positive momentum in his leadership are sending a “highly constructive message” to the market.
Entain’s strategic initiatives and strong leadership under Gavin Isaacs have fostered substantial growth in the online gambling sector. The company’s robust performance in various markets and proactive engagement with stakeholders signal a promising outlook for the future.