The FTSE 100-listed Entain PLC’s (GB:ENT) CEO, Jette Nygaard-Andersen, has stepped down from her role after the company recently settled a bribery case. Last week, the company agreed to pay £615 million to end a long-due bribery case at its Turkish subsidiary, which was sold in 2017. Stella David, currently serving as a non-executive director, will assume the role of ENT’s interim CEO starting this week. Investors cheered the news, with shares up 4% as of writing.
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Entain is a multinational gaming and sports betting company that owns games such as Bwin, Ladbrokes, Partypoker, PartyCasino, and others.
CEO Resigns as Activist Pressure Rises
Andersen became Entain’s CEO in 2021, overseeing the company’s growth and expansion amid regulatory challenges. In a statement, Anderson said that the resolution of the bribery probe “offers a clean inflection point” for her and Entain. She believes that the company is now “safe, stable and sustainable,” making it the right time for her to pursue other business and career opportunities.
Anderson’s resignation comes at a time when the company is facing increasing pressure from activist investors. In particular, activist investors have pointed out the weakness in the company’s performance in key markets and the decline in Entain’s share price. ENT shares have lost over one-third of their value since Anderson was appointed CEO of the company.
Last month, the company lowered its full-year online profit margin outlook after it reported a decline in its third-quarter net gaming revenue on a proforma basis (adjusted to reflect the impact of acquisitions).
Looking ahead, the company plans to pursue profitable growth in key markets such as the UK, Australia, Italy, Germany, and the Baltics. Simultaneously, it intends to exit smaller, non-core operations.
Is Entain a Good Stock to Buy?
Entain stock has depreciated by approximately 36% so far in 2023. Firms like Entain have struggled to maintain the momentum in the share price after the online betting boom in the pandemic.
On TipRanks, most analysts hold a bullish view on ENT stock and have rated it as a Moderate Buy. This includes eleven Buys, two Holds, and one Sell recommendation. The Entain share price prediction is 1,241.15p, which is 47.4% higher than the current trading levels.
