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As the FTSE 100 Gambling Group aims to recover from a series of enforcement departures and legal issues, Entain’s interim chief executive Stella David is permanently given the role.
David, who chaired Entein’s board of directors before agreeing to become interim CEO of the second-time owner of Rudbrokes in February, said he saw the company on Tuesday through what he called “many challenges.”
Key shareholders have given David support to becoming permanent chief executive, the FT reported last week. The shares rose up by up to 8% in London trading on Tuesday morning, with the announcement of her permanent appointment.
The gambling group is plagued by corporate governance concerns as it has passed four CEOs in five years. The company has signed a deferred prosecutor’s agreement in the UK on allegations that it failed to prevent bribery in Turkey, but Australia’s Financial Crimes Watchdog has launched legal proceedings against citing violations of anti-money laundering rules.
Entain previously said it was “very serious” on the allegations and was strengthening its compliance arrangements.
Pierre Bouchut, Entain’s newly appointed interim chair, said David will bring “consistency and stability.” A search for permanent chairs for Entain is currently underway.
Entain’s Lighting Extended Stock Prices – Since mid-2023, fellow Flutter and Ranked Groups have irritated investors, leaving their UK headquarters vulnerable to acquisitions. Draftkings, the second-largest gaming company in the United States, placed a £16.2 billion bid on the company in 2021. The company is surrounded by activist investors, including US hedge funds such as Eminence Capital and Sachem Head Capital Management.
David took the role of CEO after the departure of Gavin Isaacs, who suddenly left the company in February just five months later. entain gave no reason for his departure. Isaacs has taken up the role after the departure of Jette Nygaard-Andersen, who was attacked by investors, from extensive use of the company’s private jet to spending £2 billion on acquisitions.
“We still have some big rocks,” said David, who stepped down from whisky spirit William Grant & Sons in 2016 and focused on her non-executive supervision.
“But when you’re suddenly in a situation where you’re working every day at this company, you stay in the details of the business. I feel like I’m an investment now,” she said in an interview.
Operating on more than 40 territories, including the US, the world’s largest betting market, Entain also has problems with “tech, the UK market and customers,” David said.
However, double-digit revenue growth in the UK and booming US betting markets through a joint venture with the UK and MGM helped to report on Tuesday that a year-over-year increase in first-quarter net game revenue in certain currencies exceeds expectations of the company and some analysts.
Peel Hunt analyst Ivor Jones said David is a “secure pair of pairs” and that the company’s latest investment period in the platform and products has “begun to take off.”
