GVC prepares for £150m Covid-19 loss

Ladbrokes Coral shop front GVC Holdings
Share this article

GVC has stated the effect of Coronavirus is expected to hit earnings by up to £150m, with a number of high-profile international sporting and racing events cancelled or postponed.

 

Approximately 43 percent of the gambling group’s net gaming revenue is generated from sporting events across its stable of brands including Coral, Crystalbet, Eurobet and Ladbrokes.

“There will be substantially fewer sporting events through to August of this year and EBITDA may be down by £130m to £150m,” stated the firm.

“If shops in the UK are closed we anticipate EBITDA would be down by £45m to £50m per month, including employment costs of approximately £20m per month.”

The announcement follows the postponement of the Euros until 2021, and a hiatus on all professional football matches until July, alongside the cancellation of Royal Ascot and Aintree.

Prior to national efforts to stem the spread of Coronavirus, GVC had seen net gaming revenue for the first two months of 2020 increase five percent year on year, alongside a 15 percent rise in NGR online.

However, the group’s 931.6p share price high on 12 February dropped by almost two thirds in just over a month, with trading on 19 March seeing GVC shares priced at 323.7p.


Share this article