Key points:
- Entain CEO Gavin Isaacs steps down with immediate effect
- Stella David will be taking over as Interim CEO
- This announcement comes closely ahead of the operator’s FY24 results
- The company’s share price has reacted badly, falling 10.35% today
Following a short, five-month stint in the top job, Gavin Isaacs has officially resigned as Entain CEO – stepping down with immediate effect.
The cause behind his resignation has not yet been publicly specified by the company, which have revealed that Stella David will be taking over for the interim period. However, Gambling Insider understands the reasoning behind the decision does not lie in a disagreement over strategy. Isaacs' predominantly B2B experience may have played a part in his decision to leave a position he was not as familiar with as in previous jobs.
The company’s share price has reacted poorly to the news of this resignation, falling by 10.35% as of the time of writing. This news comes ahead of the operator’s FY24 financial announcement, which is set for 6 March.
Only recently, Isaacs provided a keynote speech during ICE Barcelona. At the time, Gambling Insider asked about the distinction between his career of B2B experience and his current role. He responded: "While I miss dealing with my direct customers, I'm finding a lot of similarities: a business is a business. G2E was the first show where I wasn't selling something and it's the same here at ICE. I'm learning all the time."
Speculation around the nature of Isaacs' departure has now begun to circulate the discourse, with the likes of J.P. Morgan Cazenove, Davy and Morgan Stanley citing a lack of strategic vision and unreconcilable differences between Isaacs and the board as possible reasons for his resignation. Regardless, this latest news marks the second CEO resignation for Entain in the last 14 months.
Stella David, who once again assumes the role of Interim CEO, 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, FY2024 Group EBITDA is expected to be at the top of the £1,040m-£1,090m 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."
Good to know: After stepping into the role in September, Isaacs delivered Q3 NGR growth of 8%, primarily driven by online US joint venture BetMGM
During Q4, the company fell under regulatory scrutiny with the Australian regulator AUSTRAC, who had announced that it had filed civil penalty proceedings against Entain Group for AML/CTF failures in the nation. More recently, the Financial Reporting Council also launched an investigation last month into KPMG’ s audit of Entain in 2022.
Despite this recent turbulence, Entain has stood firm with its recent financial guidance, publishing a reiteration of its FY2024 EBITDA guidance in January and walking back none of its previous estimations.
