Though he left most of the firm’s performance deep-dive to CFO Rob Wood, Isaacs shared a few insights on how he plans to steer the gaming giant into its next phase. Here’s what we’ve gathered so far:
1. David’s playbook: If it works, don’t mess with it
Isaacs isn’t out to reinvent the wheel, sticking with the strategy laid down by former interim CEO David and giving it his seal of approval.
When asked whether David’s focus on organic growth, margin expansion, and capturing market share in the US was the right call, Isaacs was quick to back her game plan.
“I think that was exactly the right thing to do. From what I’ve seen so far, continuous improvement and optimising performance across our businesses are key to our short-term success.”
His primary focus, for now, is tightening up Entain’s core platform, which serves multiple global markets. The aim? Make it faster, more efficient, and give local teams the power to fine-tune their operations and customer experiences.
When pressed about his biggest priority going forward, Isaacs didn’t hesitate: it’s all about the product.
“Just like with other companies I’ve been involved with, getting the product right is the key to ultimate success,” he said.
The plan moving forward? No big overhauls — but we can expect some strategic fine-tuning next year, with a major focus on improving the player experience.
2. Brazil: Hot streak or red tape?
Entain has been crushing it in Brazil, reporting a whopping 48% rise in NGR for Q3 2024. But CFO Rob Wood hinted that the samba might slow down next year, with new regulations on the horizon.
Wood warned that growth could moderate as Brazil’s fresh regulatory regime kicks in on 1 January.
When asked about the rising negative rhetoric from politicians in Brazil regarding the proposed regulatory regime, Isaacs seemed unfazed.
“We don’t think that it’s going to be torpedoed politically, and we don’t expect there to be a delay.
“We encourage regulation; we are fully regulated, and that’s where we operate best. Ultimately, a well-regulated environment will be an advantage for us,” he said.3. UK players are clicking again
For Entain, the UK market got its groove back in Q3 with a 6% rise in online NGR. CFO Wood credits the rebound to sailing through regulatory storms.
“The principal driver of the return to online growth is the lapping of regulatory measures. Now that we’ve moved past those measures and fully implemented the new voluntary code, we expect that the year-on-year regulatory drag has ed,” he said.
He noted that the last time Entain posted significant growth in UK online operations was in Q2 2021, marking over three years of stagnation.
Isaacs, meanwhile, weighed in on potential tax increases in the UK, keeping the mood cautious but clear:
“Until the budget is announced, it’s all conjecture. We continue to highlight to the Treasury that punitive tax increases would have a materially detrimental impact on the economic contributions of the wider industry, putting at risk thousands of jobs, funding for sports and racing, and potentially benefiting the black market.”
4. BetMGM: Slow and steady wins the market share?
When it comes to BetMGM, Isaacs sketched out a phased — though somewhat fuzzy — game plan: hold the line in 2024, and then shift gears to thrive in 2025.
“This year, we want to make our numbers. Next year, we aim for market growth while meeting those targets, which will be a bigger stretch, and then we want to start really growing,” he said.
CFO Wood provided context to this strategy, reiterating that Entain plans to invest approximately $750m in new player acquisition this year.
He added that the key question for next year’s EBITDA hinges on how the business manages that $750m investment.
Lastly, Entain highlighted that BetMGM stabilised its US online gambling market share at 15%
However, both Isaacs and Wood cautioned that this growth reflects seasonal trends during the quieter sports months.
Wood said he doesn’t want stakeholders to think that the business is on the upward trajectory.
“That’s not the case, not yet, but we do have stability. That’s step one, just holding market share after a long period of seeing it slip away,” Wood added.
