- CEO Isaacs leaves after 161 days
- Chair Stella David becomes interim CEO
- Comfortable with 2025 expectations
Ladbrokes-owner Entain (ENT) sank 10% after chief executive Gavin Isaacs stepped down after less than six months in the role, with chair Stella David becoming interim CEO.
No reasons were provided for Isaacs’ sudden departure, leaving investors in the dark about the future direction of the company.
AJ Bell investment director Russ Mould commented: ‘Something must have gone seriously wrong for Entain’s chief executive Gavin Isaacs to leave after just 161 days in the job.’
Analysts at Jefferies believe it will be business as usual, commenting: ‘We do not expect a material change in strategic direction, with the outgoing CEO already tasked with accelerating the execution of the May 2024 strategic review.’
Following the review, Entain’s asset allocation committee, which comprises Ricky Sandler, CEO of activist investor Eminence Capital, concluded that the focus should be on improving operational performance and disposing of non-core assets.
COMFORTABLE WITH 2025 EXPECTATIONS
Commentating on Isaacs’ departure, Stella David said: ‘Entain is making strong progress in delivering our strategic priorities. We would like to thank Gavin for his contribution.
‘The board is pleased with the group’s performance in 2024 and trading so far this year. As announced on 13 January 2025, financial 2024 group EBITDA (earnings before interest, tax, depreciation, and amortisation) is expected to be at the top of the £1.04 billion to £1.09 billion guidance range.
‘The board and management remain aligned on the group’s focus on operational excellence and maximising shareholder value. I look forward to leading the business as we continue to accelerate our performance.’
Entain said it is comfortable with market expectations for 2025 which call for revenue of £5.3 billion and EBITDA of £1.11 billion.
BETMGM TURNAROUND
Entain’s US 50/50 joint venture BetMGM painted a positive picture at its full-year update last week (7 Feb), reporting record iGaming net revenue of $1.5 billion, up 13% while sports betting net revenue increased 17% to $554 million, year-on-year.
The joint venture is now expected to turn EBITDA positive in 2025 and management reaffirmed confidence in BetMGM’s pathway to $500 million of EBITDA in coming years.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Martin Gamble) and the editor (James Crux) own shares in AJ Bell.
