(Alliance News) - Ladbrokes owner Entain on Thursday reported a strong end to 2020 and said it has "ongoing momentum" entering the new year as it announced the appointment of a female chief executive.
Total group net gaming revenue increased 7% in the fourth quarter of 2020, with online growing 41% but retail hit by restrictions and shop closures.
For the full-year, Entain expects earnings before interest, taxes, depreciation and amortisation in a range of GBP825 million to GBP845 million, in line with its earnings guidance earlier in January.
"In an exceptionally challenging year, our strong performance has been driven by a business model that is highly diversified across a wide range of products, brands, territories and channels. Q4 has been another successful period for us, and we are particularly pleased with the momentum that we are seeing in the US. BetMGM continues to go from strength to strength," said Shay Segev, Entain's outgoing chief executive.
Entain's partner in BetMGM, US casino operator MGM Resorts International, on Tuesday had said it will not be making a firm takeover offer for Entain following a possible GBP8.1 billion bid made at the start of January. Entain previously had rejected the MGM approach, saying it "significantly undervalues the company and its prospects".
In a separate release Thursday, Entain said it has appointed Jette Nygaard-Andersen, currently an independent non-executive director, as CEO with immediate effect. Segev will step down as a director and will remain available until July 8 to facilitate a smooth handover. He is set to become co-CEO of sports streaming platform DAZN.
Nygaard-Andersen - who has more than 20 years' experience in leadership and operational roles in media, entertainment, sport and digital businesses - will be the first woman to run a listed UK gambling group. Sky News had first reported last week that Entain was in talks with Nygaard-Andersen for the position.
Nygaard-Andersen was appointed to the board of what was then known as GVC Holdings at the end of 2019, having spent more than 15 years in senior roles at entertainment firm Modern Times Group AB, which operates in Scandinavia and central Europe.
Entain promoted Chief Financial Officer Rob Wood to the additional role of deputy CEO, while Chief Operating Officer Sandeep Tiku will join the Entain board later in the year.
"I am very excited to have the opportunity of continuing the extraordinary momentum that Entain has in its existing markets, as well as helping it enter new regulated markets and reach new audiences," said Nygaard-Andersen.
Entain shares were up 0.7% early Thursday and remain up 13% so far in 2020 despite taking a hit on Tuesday from the MGM decision.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.4% at 6,767.80
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Hang Seng: down 0.2% at 29,904.43
Nikkei 225: closed up 0.8% at 28,756.86
DJIA: closed up 257.86 points, or 0.8%, at 31,188.38
S&P 500: closed up 52.94 points, or 1.4%, at 3,851.85
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GBP: up at USD1.3700 (USD1.3631)
EUR: up at USD1.2131(USD1.2100)
Gold: up at USD1,867.83 per ounce (USD1,865.55)
Oil (Brent): down at USD55.88 a barrel (USD56.30)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Thursday's Key Economic Events still to come
0930 GMT UK Bank of England credit conditions survey
0930 GMT UK BoE quarterly bank liabilities survey
1100 GMT UK CBI industrial trends survey
1345 CET EU ECB interest rate decision
1430 CET EU ECB press conference with President Lagarde
1600 CET EU flash consumer confidence indicator
0830 EST US unemployment insurance weekly claims report - initial claims
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The opposition Labour party is launching a fierce attack on UK Chancellor Rishi Sunak's handling of the economy during the pandemic, saying his policies have cost jobs while leaving the UK with the highest death toll in Europe, PA reports. Shadow Chancellor Anneliese Dodds will accuse her Tory opposite number of repeatedly taking the wrong policy options, with the UK government setting up a "false choice" between protecting public health and the economy. "The chancellor has called this crisis wrong time and again," she will say in a speech on Thursday to the London School of Economics. Her attack comes at a time when Sunak is widely regarded as the most likely successor to Boris Johnson if for any reason he was to step down as the Conservative Party leader.
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Self-isolation time after contact with a confirmed coronavirus case could potentially be reduced to seven days without raising the risk of onward transmission, a new study in the UK suggests. The research, which accounts for infected people's potential viral load and the sensitivity of Covid-19 tests, estimates people who test negative after seven days of quarantine are unlikely to be infectious. Researchers say these people could potentially be released without raising the risk of onward virus transmission above what would be expected by self-isolating for 14 days without testing.
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Business recovery firm Begbies Traynor said its latest Red Flag Alert showed 630,000 UK businesses in significant distress in the fourth quarter of 2020, up 13% from the third quarter and 28% from a year before. "However, it is likely that these figures are the tip of a very large iceberg. The coronavirus pandemic has reduced court activity limiting the number of [county court judgments] and winding up petitions being issued against indebted companies and there has been a ban on winding up petitions for Covid-related debts."
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BROKER RATING CHANGES
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JEFFERIES STARTS SHELL WITH 'BUY' - PRICE TARGET 1,780 PENCE
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JEFFERIES STARTS BP WITH 'HOLD' - PRICE TARGET 2,700 PENCE
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BERENBERG RAISES J SAINSBURY TO 'HOLD' ('SELL') - TARGET 214 (183) PENCE
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COMPANIES - FTSE 100
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Accounting software firm Sage said it performed in line with expectations in the first quarter, posting recurring revenue growth. Recurring revenue for the three months to December 31 increased 4.7% to GBP408 million, supported by software subscription growth of 11% to GBP303 million. Other revenue fell 24% to GBP39 million, in line with Sage's strategy to transition away from licence sales and professional services revenue. Organic total revenue grew 1.4%. "We have continued to deliver against our strategy in the first quarter, growing recurring revenue in line with our plan for the year, supported by good demand for Sage Business Cloud solutions. Accordingly, we reiterate our guidance for the full year, as set out in our FY20 results announcement," said Chief Financial Officer Jonathan Howell.
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Anglo-Dutch consumer goods firm Unilever has pledged all workers in its supply chain receive a live wage by 2030 as its boss warned that social inequality has worsened over the past year due to the pandemic. The Ben & Jerry's and Marmite manufacturer set out its wage pledge as part of a raft of social commitments aimed to improve conditions within its supply chain. The group has invested billions of pounds into addressing sustainability and environmental concerns in recent years but it will now turn more of its attention towards social inequality. Alan Jope, chief executive officer at Unilever, said: "The two biggest threats that the world currently faces are climate change and social inequality."
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COMPANIES - FTSE 250
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Online trading platform IG Group Holdings reported a "record" performance in its first half, seeing profit more than double on a year ago. Net trading revenue in the six months to November 30 surged 67% to GBP416.9 million and pretax profit jumped to GBP231.3 million from GBP101.2 million a year before. Active clients rose 55% to 238,600. IG kept its interim dividend steady at 12.96 pence. Separately, IG unveiled its acquisition of tastytrade, a US online brokerage and trading education platform. IG will pay USD1.0 billion to tastytrade's shareholders, comprising USD300 million in cash and the issue of 61.0 million IG shares. "This acquisition will materially expand and scale our business in the US and see us further diversify into the exciting high growth market of US retail options and futures, a market which is adjacent to IG's core retail trading skill set. The US market has more than 1.5 million retail traders and is the largest derivatives market in the world," said IG Chief Executive June Felix.
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AJ Bell reported customer and asset growth in its first quarter. For the three months to December, the investment platform reported a 6% increase in customers over the quarter, closing the period at 312,309 after opening it at 295,305. Platform net inflows, representing organic growth in the quarter, increased by 67% over the prior year to GBP1.5 billion. Total assets under administration increased to GBP62.5 billion, up 14% over the last 12 months and 11% in the quarter. AJ Bell Investments' assets under management was GBP1.0 billion at the end of 2020, having doubled over the past 12 months.
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Thursday's Shareholder Meetings
Brandshield Systems PLC - AGM
Ixico PLC - AGM
Grafton Group PLC - EGM re replacement of CREST with Euroclear
Kenmare Resources PLC - EGM re replacement of CREST with Euroclear
Melrose Industries PLC - GM re renewal of employee share plan
Mineral & Financial Investment Ltd - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
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