(Reuters) - British bookmaker Entain said on Tuesday CEO Gavin Isaacs will step down immediately and chair Stella David will assume the CEO role on an interim basis. (Reporting by Yadarisa Shabong in
Entain CEO Gavin Isaacs Resigns, Shares Plunge 12%
By Yamini Kalia and Yadarisa Shabong
(Reuters) -British bookmaker Entain on Tuesday announced the sudden departure of CEO Gavin Isaacs after just five months in the role, sending shares 12% lower.
The company, which owns Ladbrokes and Coral, did not give a reason for Isaacs' departure, saying merely it was by "mutual agreement". It named non-executive chair Stella David as interim CEO.
David also temporarily stepped into the CEO role after the abrupt departure of Entain's previous CEO Jette Nygaard-Andersen in December 2023, following reports of shareholder and investor dissatisfaction.
According to Davy Research analysts, who spoke to Entain, there were "unreconcilable differences" between Isaacs and the board despite their alignment on group strategy.
Entain declined to give further details, and Isaacs did not immediately respond to Reuters' request for comment on LinkedIn.
Isaacs, 60, an American veteran in the sports betting and gaming industry, was previously a board member at U.S.-based DraftKings, which walked away from a $22 billion buyout bid for Entain in 2021.
Shares of the FTSE 100 firm, now valued at 4.76 billion pounds ($5.89 billion), fell as much as 12% on Tuesday, and are down 70% from a record high hit in 2021.
Analysts are concerned that the absence of a permanent head might make Entain a takeover target from overweight rivals and private equity outfits.
CRITICAL POINT
"Entain is at a critical point in its turnaround journey, so the timing of this is unfortunate and will likely cause investor concerns, particularly with an outstanding regulatory issue," Davy Research analyst Paul Ruddy said in a note.
In December, Entain was hit with legal proceedings from Australia's financial crime watchdog, which alleged breaches of the country's anti-money laundering and counter-terrorism financing laws.
The company has also been focusing on expanding margins, returning to organic revenue growth and winning share in the U.S., a crucial market for gambling firms.
Entain had forecast annual profit would be at the top end of its expectations in January. It will report full-year results on March 6.
($1 = 0.8087 pounds)
(Reporting by Yadarisa Shabong, Yamini Kalia and Pushkala Aripaka in Bengaluru; Editing by Mrigank Dhaniwala and Christina Fincher)
