Entain experiences a notable rebound in online gambling revenues under the new CEO’s leadership, bolstered by major sporting events.
- The company reports significant third-quarter momentum attributed to events like the Euro 2024 and the Paris Olympics.
- Entain’s shares saw a recovery, climbing 5.3%, signalling confidence in the new CEO, Gavin Isaacs.
- The UK and Ireland saw particularly strong growth in sports and gaming, supported by increased volumes and improved margins.
- International operations, particularly in central and eastern Europe, met or exceeded expectations, while retail operations remained stable.
Entain, one of the world’s leading sports betting and gaming groups, is seeing a return to growth in its online gambling division under the guidance of its new CEO, Gavin Isaacs. Major sporting events, such as the Euro 2024 football championships and the Paris Olympic Games, have contributed significantly to this upswing in activity.
The unscheduled update from Entain highlighted ongoing positive momentum into the third quarter. Boosted by these sporting events, the company’s shares rebounded with a 5.3% increase, closing at 673¼p. This recovery marks a reassuring start for Isaacs, who commenced his role as CEO last week.
Domestically, Entain’s online sectors in the UK and Ireland experienced accelerated growth in both gaming and sports. This was driven by increased volumes and improved margins, reflecting the effectiveness of Entain’s focused strategy.
International markets, specifically central and eastern Europe, performed well, in line with expectations. Meanwhile, retail operations across all regions met anticipated performance levels, showcasing the group’s comprehensive operational strength.
Entain’s extensive brand portfolio, including BetCity, Bwin, Coral, Eurobet, Ladbrokes, and Crystalbet, continues to drive its success. Furthermore, its strategic partnership managing TAB NZ and its 50-50 joint venture in the US with BetMGM, which recently introduced innovative betting features, remain pivotal to its growth strategy.
The board of Entain has recently seen changes, with activist investor Ricky Sandler of Eminence Capital, who holds a 6.5% stake, joining recently. Sandler, initially a proponent of selling parts of the BetMGM stake, has now adopted a more cooperative approach, aiming to create lasting shareholder value during his tenure as a non-independent director.
Isaacs plans to engage with investors, which analysts at Jefferies describe as sending a ‘highly constructive message’ to the market, reinforcing early positive momentum in his leadership.
Entain’s strategic focus, under new leadership, is clearly paying off as evidenced by robust online growth across multiple regions.
