Unexpected hurdles in the hunt for Entain’s new CEO
Few topics have dominated recent conversations in the betting and iGaming industry as much as the search for the next CEO of Entain, the FTSE-100 conglomerate that owns Ladbrokes, Coral, Gala Bingo, Bwin, and BetMGM.
The position was left vacant when Jette Nygaard-Andersen, the former CEO, unexpectedly resigned 11 days before Christmas. Since then, the role has been filled on an interim basis by Stella David, the former CEO of William Grant & Sons.
Richard Flint’s resolute refusal
One of the favourites for the role, Richard Flint, (pictured above), has ruled himself out. Flint, who had a successful stint as the CEO of Sky Betting and Gaming, recently stepped down as a non-executive director of Flutter Entertainment. Despite speculation, Flint has stated that he is not seeking another executive position. He is currently Chair of the dog food subscription service Butternut Box and the premium ticket and hospitality platform Seat Unique.
The search for a new CEO comes at a pivotal time for Entain. The company is working its way through the changes in the betting and gaming industry, with increasing regulatory scrutiny and the need for innovation and digital transformation.
Entain’s incoming CEO will be stepping into a chess game of strategic foresight and operational acumen. And the task would be to balance these changes and deliver shareholder value whilst maintaining as an industry lead. The gaming industry’s ever-changing rules demand a leader who can stay ahead of the curve, ensuring Entain’s success. Entain is contending with a substantial debt burden and the necessity for successful strategies in key markets such as Brazil and the US, where challenges have arisen in its joint venture with MGM. Insiders suggest that Entain may even need to streamline operations and potentially reduce headcount to enhance efficiency and performance..
This necessitates a departure from Nygaard-Andersen’s M&A-centric approach, shifting towards asset sales in mature markets like Australia to generate capital.
Nygaard-Andersen post-Entain
She was known for her deal-thirsty approach. Her leadership was marked by an insatiable appetite for Mergers and Acquisitions, reflecting a strategic vision focused on growth and expansion. However, this aggressive M&A strategy also brought its share of challenges, leaving a legacy that the new CEO will need to examine carefully. Her approach elicited mixed reactions from investors and stakeholders
Nygaard-Andersen’s departure was unexpected and left a significant gap, however it was a timely exit prior to the situation turning significantly challenging. Her tenure was marked by a 35 percent decline in the company’s market value. Despite a less-than-ideal track record during her tenure, Nygaard-Andersen’s exit raises concerns about the group’s susceptibility to a takeover.
The incoming CEO of Entain must confront a substantial £3 billion debt burden, exceeding three times next year’s projected EBITDA. Stella David, who stepped in as the interim CEO, brings a wealth of experience to the role She has held senior roles in several large consumer-facing businesses and currently holds non-executive and independent director roles at several companies, including Entain. Her leadership during this transitional period has been crucial in calming the troubled waters and steering Entain towards stability and growth.
On one hand, her aggressive M&A strategy was seen as a key driver of Entain’s growth. Under her leadership, Entain acquired several brands in regulated territories, allowing the company to quickly gain a presence and scale in new or growing markets2. This strategy was in line with the company’s target of generating 100 percent of revenue from locally regulated markets. On the other hand, some investors and stakeholders expressed concerns about this approach. Criticism centred on slow revenue growth at Entain, as well as the increasing regulatory obligations. Activist hedge fund Corvex Management, which acquired a 4.4 percent stake in Entain, labelled Nygaard-Andersen’s departure a “necessary” first step to recovery. While Nygaard-Andersen’s M&A strategy contributed to Entain’s expansion, it also raised concerns among some investors and stakeholders about the company’s growth and regulatory compliance.
Nygaard-Andersen is currently on the board of several companies, including Coloplast A/S, a Danish multinational company that develops, manufactures and markets medical devices and services related to ostomy, urology, continence, and wound care. Nordic Entertainment Group Denmark A/S, an investment company with interests in trading and marketing of goods, financing of satellite receivers, leasing, and distribution of TV programmes. In addition, she was the Chief Executive Officer for MTG Broadcasting AB, a part of Modern Times Group MTG AB, which is a Swedish pure-play gaming entertainment investment company.
The search for Entain’s new CEO is more than just a game of chance. It’s a strategic move that will not only shape the future of the company but that of the betting and gaming industry. Whoever steps into the role will have a significant task ahead, steering Entain through a period of change and uncertainty. Establishing a path for the company’s successful future has now become a prerequisite.
The hunt for an exceptional CEO is far from over.
