Ladbrokes-owner Entain PLC (LSE:ENT)’s chief executive Jette Nygaard-Andersen has resigned from her position with immediate effect, the betting big cap disclosed on Wednesday.
Entain’s board has asked Stella David, currently a non-executive director, to take the top position on an interim basis until a permanent replacement has been found.
In November, Goldman Sachs (NYSE:GS) flagged several issues at Entain, including disappointing online growth due to regulatory headwinds, competition, market dynamics, and unfavourable sports results, which have contributed to earnings downgrades.
Additionally, Goldman contended that the BetMGM joint venture was losing market share in the US.
Entain is also dealing with legacy legal issues (before Nygaard-Andersen’s 2021 appointment) regarding its Turkey operations, leading to a near-£600 million HMRC settlement.
“The past three years have been rewarding and challenging in equal measure,” Nygaard-Andersen said in a press statement.
She continued: “The resolution of the HMRC investigation into the legacy business, which was sold by a former management team in 2017, offers a clean inflection point for me and for Entain.
“The group is now safe, stable and sustainable and I believe that this is the right time to move on to other business and career opportunities.”
Barry Gibson, chairman of Entain, said: “Under Jette's leadership, Entain has executed a fundamental strategic shift towards regulated or regulating markets, overhauled its governance, transformed its operations, and significantly improved its customer offering.
“It is no exaggeration to say that the HMRC investigation posed a number of threats to our group. As the court last week recognised in approving a deferred prosecution agreement (DPA), had the matter not been resolved by way of a DPA, the consequences to the company and all of its stakeholders could have been disproportionate.
“The overhaul of the business model, strategy and culture of the group in recent years was vital to securing the successful conclusion of a DPA process."
Entain shares rallied on the announcement of Nygaard-Andersen’s departure, gaining 4.3% to 841p at the time of writing.
But year-to-date performance remains in the doldrums, nearly 40% lower since 1 January.