Entain has reported significant growth in its online gambling sector, showcasing strong recovery under the leadership of its new CEO, Gavin Isaacs.
This uptick in online revenues has been bolstered by major sporting events such as Euro 2024 and the Paris Olympic Games, bringing renewed optimism to the company’s prospects.
The company’s recent update revealed positive momentum continuing into the third quarter. This growth was driven by increased engagement from high-profile events like the Euro 2024 football championships and the upcoming Paris Olympic Games.
Shares in Entain, which had fallen by more than 40% this year, recovered significantly by rising 5.3% to close at 673¼p following this announcement.
Gavin Isaacs, who assumed the CEO role last week, has had a promising start. To support his transition, former interim CEO Stella David will stay with the company until the end of the month before taking on the role of chair.
Entain’s focused strategy has been fruitful, with online net gaming revenue exceeding expectations in the second half so far. The UK and Ireland online sectors saw accelerated growth, particularly in gaming and sports.
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, boasting a diverse portfolio of brands. The company operates major brands like BetCity, Bwin, and Ladbrokes, among others.
Additionally, its gaming brands include Foxy Bingo, Gala, and Partypoker. Entain also runs TAB NZ through a strategic partnership and holds a 50-50 joint venture in the US with BetMGM, which has introduced new live betting and bet slip features.
Ricky Sandler, an activist investor from Eminence Capital holding a 6.5% stake in Entain, has recently joined the board. This follows the unexpected departure of former CEO Jette Nygaard-Andersen last December.
Sandler had previously suggested the board consider selling parts of its BetMGM stake but has now adopted a more collaborative approach. He aims to create ‘lasting value for shareholders’ during his tenure as a non-executive director, though he is not classified as independent.
Isaacs is set 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.
The company’s strategic focus and recent achievements are poised to enhance investor confidence, contributing to a more stable market position for Entain.
The strong performance in online gambling and positive market response under Gavin Isaacs’ leadership mark a promising new chapter for Entain.
With continued strategic focus and engagement from significant sporting events, the company is well-positioned for sustained growth and success.
