Just over £460 million was wiped from the value of Entain PLC (LSE:ENT) in a bloody opening session after Ladbrokes and Foxy Bingo owner announced that CEO Gavin Isaacs is stepping down just five months into the job.
The company said the decision was made "by mutual agreement", but no further details were given.
Non-executive chair Stella David will take over as interim CEO, a role she previously held for 10 months before Isaacs joined in September.
Pierre Bouchut will step in as interim non-executive chair while the search for a permanent CEO continues.
Despite the leadership shake-up, Entain insists its trading remains strong, with 2024 profits expected at the top of guidance. The company also said it is on track to meet market expectations for 2025 and will provide a trading update on March 6.
"Details are scarce, and while Entain used the moment to reassure investors that it's on track to meet 2025 profit expectations, sudden leadership shake-ups rarely go down smoothly - questions will be flying," said Matt Britzman, an analyst at Hargreaves Lansdown.
In early trading, the stock was down 11% at 662.8p.