Entain Appoints Stella David as Permanent Chief Executive Officer
After a rollercoaster ride, it looks like things are finally turning around for Entain, the folks behind BetMGM. The company's recent quarters have painted a rosy picture, with a 9% surge in Group Net Gaming Revenue (NGR) kickstarting 2025. Even more impressive, they're expecting to see a 23% rise in the UK and Ireland's Online NGR once currency changes are accounted for. Brazil isn't far behind, with a whopping 31% increase in NGR.
But the spotlight isn't just on Entain; their subsidiary, BetMGM, is staking its claim too. The company is projected to reach EBITDA positivity by the end of 2025 and is confident of delivering revenue between $2.4 billion and $2.5 billion for the year.
The latest developments at Entain have led to some major shakeups in the executive suite. Stella David, who's been serving as interim CEO since Gavin Isaacs' departure in February, has now stepped into the role permanently. The company's share price jumped almost 3% as a result, with Ivor Jones at Peel Hunt praising the appointment, calling it a "safe pair of hands."
Speaking to the Financial Times, David admits there are still challenges ahead, but she's now invested in the business personally. New interim chairperson Pierre Bouchut notes that her appointment will bring "consistency and stability" to the company. With David being the fourth CEO in the past five years, this appointment certainly helps with the latter.
Looking ahead, Entain seems to be on the right track. The company has strong positions in attractive markets, as well as a clear strategy for sustainable earnings. Their operational execution has already generated momentum, and they're aiming for mid-single-digit percent Online NGR growth in 2025 on a constant currency basis. Entain is also targeting generating over £0.5 billion of annual cash flow in the medium term.
All signs point to a brighter future for Entain. Shareholders seem confident too, given the positive movement we've seen in their shares following the strong Q1 results. The company is proving that even after a series of setbacks, it's never too late to bounce back—and hopefully, these positive developments will continue to pay off.
- Stella David, formerly the interim CEO of Entain, has been appointed as the permanent CEO, a move heralded as a "safe pair of hands" by Ivor Jones at Peel Hunt.
- The appointment of Stella David is expected to bring "consistency and stability" to Entain, a welcome change considering she is the fourth CEO in the past five years.
- The new leadership under Stella David is investing in the business, a step that ensures continuity and potentially drives the company forward.
- Entain's subsidiary, Ladbrokes, under the leadership of Stella David, aims to generate over £0.5 billion of annual cash flow in the medium term, a significant financial goal reflecting the company's growing stature in the business world.
