The entertainment firm, Entain, has granted 846,067 shares to its temporary chief executive, David, and his deputy, Wood.
David, who assumed the role from the previous CEO, Jette Nygaard-Andersen in December, was given 526,626 shares, each valued at €0.01, under the company’s 2017 Long-Term Incentive Plan (LTIP). At the same time, Wood was given 307,202 shares, each worth €0.01, under the LTIP rules. These awards are expected to be effective on March 11, 2027.
The LTIP payments are contingent on continued employment and specific financial goals, which will be disclosed in Entain’s 2023 annual report. The report is scheduled for release on March 22. The after-tax shares received from the LTIP awards will have a two-year holding period.
Entain also granted Wood 12,239 shares, each valued at €0.01, as part of her 2023 bonus, under the company’s Annual and Deferred Bonus Plan (ADBP). According to the company’s compensation policy, 50% of the annual bonus for executive directors will be deferred in the form of shares. Wood’s ADBP shares are expected to be granted on March 11, 2027.
2024 is a vital year for Entain.
The tumultuous year of 2023 set the stage for Entain Group’s 2024 events as it strives for stability.
The UK’s Her Majesty’s Revenue and Customs (HMRC) and the Crown Prosecution Service (CPS) reached a settlement regarding Entain Group’s past operations in Turkey, leading to a £585 million (€684.4 million/$748.2 million) penalty. Entain Group will also make a £20 million charitable contribution and pay £10 million in expenses to the CPS and HMRC.
Days after the settlement was declared, CEO Nigad-Anderson promptly stepped down. Entain Group is currently searching for a permanent replacement for Nigad-Anderson.
Nigad-Anderson’s departure coincided with mounting pressure on its merger and acquisition strategy. Entain Group acquired Polish sports betting operator STS Holding in August 2023 and finalized the acquisition of Angstrom Sports in October. While Nigad-Anderson characterized both deals as profitable, the full potential of these moves was yet to be realized before her departure.
Activist hedge fund Corvex Management obtained a 4.4% stake in Entain Group in December, describing Nigad-Anderson’s departure as a “necessary” initial step. However, Corvex also called for further changes following the group’s recent “unacceptable” performance.
Entain Group reported a significant loss for 2023
Taking into account the agreement with HMRC and CPS, Entain Group reported a net loss of £936.5 million for 2023. This was despite a 11.1% increase in net gaming revenue (NGR).
NGR climbed to £4 in 2023.
The Entain Group witnessed a notable 11% surge in revenue during 2023, hitting a remarkable £4.8 billion. This growth was evident across all of its primary business divisions.
However, despite this positive revenue trajectory, elevated expenses resulted in a net deficit for the organization in 2023. The company’s increased expenditures throughout the year were primarily fueled by heightened impairment charges, the amortization of intangible assets acquired through mergers, and restructuring expenses. These combined expenses culminated in a near £1 billion net loss for Entain.
Despite this financial setback, Chairman Barry Gibson maintains a positive outlook regarding Entain’s long-term potential. Gibson elucidated that 2023 was a period of “essential yet ultimately beneficial transformation” for the company.
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