British betting operator Entain has seen its share price rise 7% as the company posted a 12% increase in its annual adjusted core profit on Thursday (Mar. 6).
The parent company of heavyweight brands such as Ladbrokes, Coral, and BetMGM set out a positive outlook on market expectations for the upcoming year on the back of some recent troubles for the firm.
Last month, after just five months in the role, Entain’s CEO Gavin Isaacs quit his role.
On February 11, the company stated he was leaving “by mutual agreement”, and that was followed by the resignation of Lachlan Fitt, Entain’s Deputy CEO.
The turnover at executive level comes amid ongoing legal pressure from Australia’s financial intelligence agency (Austrac).
Since late 2024, Entain has been embroiled in a money laundering probe, with Austrac taking the company to federal courts over alleged “non-compliance with anti-money laundering and counter-terrorism financing laws.”
Our Full Year Results for 2024 are here! 🥳
We’ve been focused on delivering our strategic priorities, and our achievements and improvements has driven us back into organic growth.
Here are some of the highlights from our Results today:
👉 Our Net Gaming Revenue (NGR) has… pic.twitter.com/EmYuU9xB8j
— Entain (@EntainGroup) March 6, 2025
Question marks remain over the strategy
After the profit announcement on Thursday, the company would not be drawn on the process to appoint a new chief executive, with interim CEO Stella David set to remain in the role “for as long as it takes”.
Deputy CEO Rob Wood told Reuters there was no explicit timeline to make a new appointment, with the company seemingly taking its time to find the right hire, to oversee progress beyond the recent upheaval.
Wood refused to elaborate on reasons for Isaacs exit, after analysts had cited “unreconcilable differences” between the experienced Australian lawyer and the board which resulted in the parting of ways.
Derren Nathan, head of equity research at Hargreaves Lansdown, noted the upturn for the company while underlining the importance of fresh leadership and direction.
“Entain is in a strong position to grow its share of the world’s most lucrative gambling markets, but until a permanent (CEO) replacement is found, question marks will remain over the strategy,” he said.
Image credit: Entain
