Entain’s chief executive Jette Nygaard-Andersen has stepped down with immediate effect following a turbulent period for the gambling group. [Image: Shutterstock.com]

Investors welcome the news

The under-fire chief executive of gambling group Entain has resigned. Investors have made their feelings known in recent weeks about Jette Nygaard-Andersen’s leadership and the company’s share price jumped 5% following the announcement on Wednesday morning.

past two chief executives were internal appointments

Non-Executive Director Stella David will step in as the interim CEO, with the past two chief executives being internal appointments. Entain Chairman Barry Gibson thanked Nygaard-Andersen for her “dedication to steering the company through such a difficult time.”

The time is right

Explaining the reasoning behind her immediate resignation, Nygaard-Andersen said that the company is now “safe, stable, and sustainable” following the recent settlement over a historic bribery scandal and it is good timing for her to pursue other opportunities. Entain agreed last week to pay £585m ($732m) to the UK tax authorities over the past transgressions in Turkey.

Entain’s share price has dropped 47% over the past couple of years, making it the fourth worst-performing company in terms of total shareholder returns in the FTSE 100. The company has rejected two takeover offers over the last few years, with US gambling companies DraftKings and MGM Resorts International both making approaches.

A costly period

Jette Nygaard-Andersen became Entain’s CEO in January 2021, making her the first-ever female CEO of a betting company with a UK listing. She led the way on 11 different acquisitions, which added up to over £2bn ($2.5bn). Some of these acquired operations are no longer operating and investors have questioned the approach to mergers and acquisitions.

Entain owns popular gambling brands like Coral and Ladbrokes, and jointly owns US operator BetMGM.

Its costs also increased significantly during her time at the helm, with the management starting to use private jets to get to many meetings. According to the Financial Times, some audit and finance team employees gave her the nickname “Private Jette.”