DAVY VIEW

Entain has announced that its CEO, Jette Nygaard-Andersen, will stand down from the group with immediate effect and be replaced on an interim basis by current non-executive director Stella David. Entain’s share price has been under significant pressure year to date due to well-documented issues, including an acquisition strategy and resulting equity raise that was poorly received by some investors coupled with slowing organic growth in its online division. Recent market share losses in BetMGM and the delayed timeline of profitability caused further investor concern. Certain investors had raised question marks about the CEO’s performance in the media, so there was something of a sense of inevitability about the change. The conversation will now quickly shift to whether this will signal (or lead to) a strategic change, with potential discussions surrounding group leverage, whether there may be assets it could dispose of and whether the structure of the BetMGM JV remains appropriate.