Stella David is confirmed as permanent CEO of Entain, as the group publishes strong results for the first quarter of 2025.
Key Takeaways
- Entain revenue up by 11% in Q1, with results better than expected.
- Stella David, who had been interim CEO, is now permanent CEO of the group.
- Company shares jumped 7.6% in early trade as a result of the announcement.
Entain plc, which owns both Ladbrokes and Coral, reported a stronger start to 2025 than expected Tuesday morning.
Publishing its financial results for the first three months of the year, the company revealed an 11% increase in total net gaming revenue for the group, a figure that includes its 50% share of BetMGM.
The group also confirmed Tuesday morning that David, the interim CEO, is now its permanent CEO. The appointment, which had been in firm favor with shareholders and company investors, immediately sent shares climbing.
Revenue rises beyond expectations in first quarter
Online performances were particularly strong in the first quarter, where revenue for both Entain and BetMGM was up by 12% (or 15% on a constant currency basis).
“We have made a strong start to 2025,” David said of the financial results of the first quarter “Our improving operational execution saw us exit 2024 with clear momentum which has continued in Q1.”
Revenue excluding the U.S. was also ahead of expectations, up by 6% year-on-year, with Entain attributing the rise to strong volumes in the U.K., along with what it has termed “operator friendly sports results.” Results were partially offset by softer U.K. and Ireland retail gaming volumes, however.
In Brazil, Entain saw revenue jump by 31% on a constant currency basis, a strong performance that’s testament to the company’s adaptation to the new licensed market regime. It wasn’t quite as positive in every market, though. In Australia, revenue was down by 8%, due to more customer-friendly results in the country.
A positive start to 2025 for BetMGM
BetMGM sailed through the quarter with strong growth throughout. Its revenue was up by 34% year over year, which is well ahead of expectations.
The company is now on track to be EBITDA positive in the fiscal year, delivering revenue expectations in the region of $2.4 to $2.5 billion.
Entain attributed BetMGM’s success to the recent work undertaken on its sports products, along with new player engagement strategies. Revenue was driven by its iGaming offering, with record iGaming revenues up 27% and record online sports NGR up 68%.
Entain shares jump as David confirmed as permanent CEO
David’s appointment sent shares rising Tuesday morning, as Entain sought to provide some stability and consistency with a permanent CEO.
Company shares jumped 7.6% in early trade, a rise that would also have been helped by first quarter revenue. The shares had dropped by more than 8% since the beginning of 2025, but by 10 a.m. BST they were up around 4% at 655.80 pence.
David had been interim CEO since the resignation of Gavin Issacs in February, which sent shares tumbling 12% on the UK’s Financial Times Stock Exchange. In 2024, David was also announced as Entain chairman, replacing Barry Gibson.
Shareholders were reportedly in firm favor of David staying at the helm in the long-term. Investors are said to have been far more satisfied with David’s corporate strategy during her time as interim CEO.
Interim non-executive chair Pierre Bouchut said David is “highly regarded” by stakeholders, having played a key role in delivering the group’s ambitious global strategies.
“Entain has a clear and compelling strategy with today’s results further evidence of its delivery,” David said. “We are in the early stages of our journey of improvement and are driving ahead at pace.
“Entain’s portfolio of podium positions in attractive and regulated growth markets underpins the structural growth embedded in our business. We are confident that our current momentum and underlying growth will deliver quality and sustainable earnings with a clear pathway to generating over £0.5 billion of annual cashflow in the medium term.”
