Entain Appoints Stella David as Permanent Chief Executive Officer
Entain, the company behind Ladbrokes, has shown some promising signs of recovery after a rocky past. Recently, the company reported a strong Q1 2025 performance with a 9% year-on-year increase in group net gaming revenue.
In a significant move, Stella David, who stepped in as the interim CEO following Gavin Isaacs' departure in February, was confirmed as the permanent CEO in April. The company's share price jumped almost 3% on the back of this news, with analysts praising the appointment as a "safe pair of hands."
The UK/Ireland segment saw a 23% increase in net gaming revenue, while Brazil surged by 31%. BetMGM, a key aspect of Entain's operations, reported a 34% net gaming revenue increase, thanks to improved product offerings and engagement strategies.
The U.S. market, driven by BetMGM's progress, is set for growth. The company is projected to achieve positive Q1 EBITDA, with full-year 2025 EBITDA positivity now highly anticipated. Revenue forecasts for 2025 stand at $2.4–2.5 billion.
David has stated that while the company has made significant strides, there are still "big rocks to move." The company aims for mid-single-digit online net gaming growth for FY25, underpinned by regulated markets like the UK, Brazil, and the U.S. They also target over £500 million in annual cash generation before dividends.
Entain's focus lies in premium customer engagement and enhancing its sportsbook and iGaming platforms. They plan to continue their investment in Brazil and other regulated markets to diversify revenue streams.
While regulatory scrutiny over a historic bribery case remains a potential reputational risk, the company's recent growth suggests operational resilience. Stella David's permanent appointment aims to stabilize management after recent turnover.
All in all, Entain's early 2025 results signal a rebound, with BetMGM poised to solidify its U.S. market position and Entain leveraging its diversified, regulated portfolio for sustained growth.
Stella David, the confirmed CEO of Ladbrokes' parent company Entain, expressed optimism for mid-single-digit online net gaming growth in FY25, with a target of over £500 million in annual cash generation before dividends. The financial success of Entain, valued at 784m, over the years is attributed to its focus on premium customer engagement, sportsbook, and iGaming platforms, as well as its investment in regulated markets like the UK, Brazil, and the U.S. to diversify revenue streams.
