Jette Nygaard-Andersen has been the CEO of Entain since January 2021, previously serving as a non-executive director. Before joining Entain, she was with Modern Times Group and took over from Shay Segev who left for Dazn. Stella David, a non-executive director, will serve as the interim CEO while a permanent replacement is sought.
In paying tribute to Nygaard-Andersen, Entain chairman Barry Gibson praised her leadership and the strategic shift towards regulated markets, improved governance, and enhanced customer offering during her tenure. Gibson expressed confidence in Stella David’s ability to guide the company towards its strategic goals while they search for a permanent CEO. David holds board positions in various retail and entertainment businesses including Vue Cinemas, Bacardi, Domino’s Pizza, and Norwegian Cruise Line Holdings.
Nygaard-Andersen’s departure follows the resolution of a long-running case in Turkey for Entain. The company reached a deferred prosecution agreement with the Crown Prosecution Service last week, which includes financial penalties, disgorgement of profits, charitable donations, and contributions to HMRC and CPS costs. Nygaard-Andersen played a significant role in reaching this settlement.
In reflecting on her time with Entain, Nygaard-Andersen stated that the resolution of the historic investigation offers a clean inflection point for her and the company. She believes that Entain is now in a safe, stable, and sustainable position, prompting her decision to explore other business and career opportunities.
Entain has faced challenges beyond the legal case, as seen in Goldman Sachs downgrading the company’s stock. Concerns about business growth, particularly in the online division, were highlighted. Goldman Sachs forecasts negative pro-forma online growth in the coming quarters and a return to growth expected in the latter half of next year. The bank also lowered earnings per share estimates for 2024 and 2025.
Despite the challenges, Entain’s BetMGM joint venture has been successful in the US market. However, recent updates show a mixed outlook, leading to concerns about the company’s confidence. BetMGM aims to secure 25% market share in the US by 2026 with positive EBITDA of $500 million. BetMGM’s expansion into the UK with LeoVegas instead of Entain raised questions about Entain’s role and performance. Entain reported record results in H1 2023, but their Q3 update showed slowed online net gaming revenue growth.
Prior to her departure, Nygaard-Andersen faced criticism for slow revenue growth at Entain and increasing regulatory obligations. The period leading up to her resignation also involved several mergers and acquisitions, with Nygaard-Andersen taking the lead as a spokesperson. Notably, Entain acquired Polish sportsbook operator STS Holding and finalized the acquisition of Angstrom Sports, emphasizing the benefits for BetMGM in the US market.
