(Reuters) -Ladbrokes owner Entain named Stella David as its permanent CEO on Tuesday and reported an 11% jump in first-quarter net gaming revenue, sending the British bookmaker's shares higher in
Entain's Shares Surge with Stella David as New CEO
By Shashwat Awasthi and Simone Lobo
(Reuters) -Ladbrokes owner Entain named Stella David as its permanent CEO on Tuesday, sending the British bookmaker's shares higher as her appointment had been backed by shareholders and investors favoured her stable corporate strategy.
David had been interim CEO since Gavin Issacs resigned in February after just five months in the top job. His predecessor, Jette Nygaard-Andersen, had also suddenly resigned in December 2023, following reports of shareholder and investor dissatisfaction.
"She is highly regarded by our stakeholders, and her appointment provides consistency and stability," interim Chair Pierre Bouchut said, adding that David had played a key role in executing Entain's ongoing strategy.
Shares in Entain, which also owns the Coral and Eurobet brands, jumped 7.6% in early trade, helped by rising first quarter revenue. The shares, which had fallen more than 8% since the start of the year, were up around 2.8% at 645.6 pence by 0800 GMT.
"Investors should be comforted that Stella David will now become CEO. Given her role as architect and executor of the strategy in her previous time as interim CEO, we do not expect a material change in strategic direction," Jefferies analysts said in a note.
Entain, which reported an 11% rise in first-quarter net gaming revenue at constant currency, is looking to expand into the booming U.S. betting market via its joint venture with MGM. It is also focusing on growth in the UK and Ireland and key international markets like Brazil, against the backdrop of broader economic uncertainty.
In an interview with Reuters, David said the company had not seen any indications of impact on people's behaviours with regard to betting and gaming.
"What people tend to do in periods of uncertainty is that they probably go back to their nest... They may not be going to the big game and spending the money, but they want to be involved," David said.
The company said it was comfortable with market expectations for 2025 core earnings of 1.11 billion pounds.
It had reported core profit of 1.09 billion pounds for 2024.
(Reporting by Shashwat Awasthi and Simone Lobo in Bengaluru; Editing by Sumana Nandy and Susan Fenton)
