Entain’s latest performance update reveals significant recovery and growth attributed to major sports events and a new leadership approach.
- An unscheduled report shows Entain’s positive momentum in the third quarter, driven by major sporting events like Euro 2024.
- Entain’s shares rebounded by 5.3% following the announcement, marking a favorable start for new CEO Gavin Isaacs.
- UK and Ireland’s online sectors accelerated, with international markets also performing strongly, despite retail operations meeting expectations.
- Activist investor Ricky Sandler joins Entain’s board, aligning strategies for sustained shareholder value.
In an unscheduled update, Entain has reported a remarkable recovery in its third-quarter performance, largely driven by increased engagement from major sporting events such as the Euro 2024 football championships and the Paris Olympic Games. Shares in Entain, which had seen a steep decline of over 40% earlier this year, rose by 33¾p, or 5.3%, closing at 673¼p after the report. This notable improvement comes as Gavin Isaacs assumes the role of CEO, having taken over leadership the previous week.
To ensure a smooth leadership transition, former interim CEO Stella David remains with the company until the end of the month before stepping into the role of chair. This reorganization is strategically aligned to ensure the company’s forward momentum and continued growth.
Entain’s strategic focus has yielded impressive results, particularly in its online gaming sector where net gaming revenue has surpassed expectations. In the UK and Ireland, the online gaming and sports sectors have experienced accelerated growth, benefiting from increased volumes and improved margins. Meanwhile, Entain’s operations in Central and Eastern Europe have similarly exceeded expectations, solidifying the company’s robust international footprint.
As one of the world’s largest sports betting and gaming groups, Entain’s diverse brand portfolio includes prominent names like BetCity, Bwin, Coral, Eurobet, and Ladbrokes. The group also manages gaming brands such as Foxy Bingo, Gala, Ninja Casino, Partypoker, and Partycasino. Through a strategic partnership, Entain operates TAB NZ and holds a 50-50 joint venture in the US with BetMGM, now offering new live betting and bet slip features.
Recognizing the shift in company dynamics, Ricky Sandler from Eminence Capital, holding a significant 6.5% stake in Entain, has joined the board. Following the departure of the former CEO Jette Nygaard-Andersen, Sandler urged the board to consider divesting parts of its BetMGM stake but has since shifted towards a more collaborative engagement philosophy. As a non-executive director, Sandler aims to generate lasting value for shareholders over a three-year period. Isaacs plans to engage with investors soon, with analysts at Jefferies noting that his proactive shareholder approach signals a highly constructive market message.
Entain’s strategic focus and leadership transition have fostered strong growth across its online sectors, underscoring the company’s resilience and forward momentum.
