Entain has appointed Stella David as permanent Chief Executive Officer, in addition to reporting “better than expected” results in its first quarter of 2025 trading update.
David’s appointment brings an end to her second spell as interim CEO of the global sports betting and gaming group, a role she has filled since Gavin Isaacs stepped down as CEO earlier this year in February.
She was also previously the interim CEO between December 2023 and September 2024, following the departure of Jette Nygaard-Andersen.
“Entain has a clear strategy and we are making great strides in strengthening our operational capabilities,” commented David.
“Having taken the time to reflect, I am hugely excited to be leading the business going forward as Entain’s CEO as we accelerate our journey of improvement. Entain is a great business with significant potential and I am confident in its ability to deliver further success in the future.”
A member of the Entain board since March 2021, David’s experience includes being CEO of William Grant & Sons, Chair of C&J Clark Ltd and more than 15 years in senior positions with Bacardi Ltd, as well as Non Executive roles at Homeserve plc, Nationwide Building Society, Vue International and Domino’s Pizza Group.
Pierre Bouchut, Interim Chair of Entain, added: “The Board is delighted to have appointed Stella as CEO. She is an accomplished and commercial business leader with a long track record of success across multiple industries.
“Stella has played a pivotal role in shaping, implementing and executing the ongoing delivery of Entain’s strategy to drive value for our shareholders. She is highly regarded by our stakeholders, and her appointment provides consistency and stability as the business pursues its many growth opportunities.”
Better than expected Q1
As previously mentioned, Entain also published a trading update for Q1 2025, stating that total group net gaming revenue, including its 50% share in BetMGM with MGM Resorts International, was up 9% year-over-year and 11% in constant currency following strong online performances. Including US operations, online was up 12% and 15% cc.
Excluding US operations, group NGR was up 8% YoY cc – online rose by 10% cc while retail grew by 2% cc. The group noted that the results were “better than expected”, as UK & Ireland online operations were offset by UK&I retail operations, in addition to benefiting from operator-friendly sports results.
Gaming NGR was up 7% YoY cc, sports NGR increased by 8% cc, sports wagers rose by 3% cc, while sports margin was up 0.8pp.
Online NGR increased by 10% YoY cc, as Entain stated that volumes and sports margins were ahead of expectations. Meanwhile, retail NGR rose by 2% cc as sports margin was offset by UK gaming volumes.
David said: “We have made a strong start to 2025. Our improving operational execution saw us exit 2024 with clear momentum which has continued in Q1. Entain has a clear and compelling strategy with today’s results further evidence of its delivery. We are in the early stages of our journey of improvement and are driving ahead at pace.”
Segment performance
Per segment, UK&I NGR increased by 10% YoY cc – online was up 23% cc, but retail declined by 1% cc. Entain stated that online NGR was able to exceed expectations thanks to 21% volume growth, which it believes is ahead of the market.
For International, NGR was up 5% YoY cc – online rose by 4% cc while retail grew by 11% cc. Brazil’s NGR rose by 31% cc as operations “continued to perform strongly” following the launch of the country’s regulated market at the beginning of the year.
However, Australia’s NGR declined by 8% cc following customer-friendly sports results. Entain did not provide an update on its current compliance situation with AUSTRAC.
Central and Eastern Europe NGR rose by 12% YoY cc – online increased by 13% cc while retail rose by 11% cc. Croatia operations were highlighted by the group as “continuing to perform particularly strongly”.
As for BetMGM, Entain stated that its Q1 NGR was “ahead of expectations” with 34% growth YoY cc, benefiting from record iGaming and online sports betting NGR, up 27% and 68% respectively.
Following a positive contribution from iGaming and online sports betting, BetMGM Q1 EBITDA stood at $22m.
Outlook
Encouraged by its performance so far, Entain has reiterated its expectations for online NGR of mid-single-digit percent growth in 2025 on a constant currency basis, while also remaining comfortable with market expectations for EBITDA.
The group added that its ongoing operational and strategic progress provides evidence for its confidence in achieving more than £500m annual cash generation pre-dividends in the medium term.
David concluded: “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.”
