GVC Holdings lowers estimated negative impact of COVID-19 pandemic

[The Buzz]

In a trading update on Monday, GVC Holdings, which previously estimated the negative impact of COVID-19 on its earnings would be around £100 million per month, revised that estimate to £50 million after taking what CEO Kenny Alexander called “a range of measures to keep our people safe, strengthen our financial position, limit cash outflow, preserve jobs and maintain a compelling customer offer.”

From Reuters:

The gambling industry on the one hand is seeing a bump in online gaming by people stuck at home under lockdowns, but has seen its big cash cow - sportsbetting - hammered by a shutdown in sports activity that may last months.

GVC said that the cancellation of sports events and closure of retail outlets had “significantly” reduced its revenue from mid-March. However, in the first quarter of 2020, its net gaming revenue inched 1% higher, with online growing 19%.

Shares of the London-listed firm, which have fallen more than 40% so far this year, were up as much as 8.8%.

“While our global and product diversification is standing us in good stead during the current uncertainty, the COVID-19 pandemic is posing an unprecedented challenge to our business,” Chief Executive Officer Kenneth Alexander said.

Read more here: https://www.reuters.com/article/heal...-idUSL4N2BU1J9

[Mattbar]

I'm sure the big increase in revenue they are now getting on 3 year-old+ accounts is part of strengthening their financial position and limiting cash outflow!

[universal4]

Let me translate this part

limit cash outflow,

= screw affiliates

Rick
Universal4

[TheGooner]

I guess they've closed physical shops and laid off staff that reduces a lot of expenditure. Is the UK doing pandemic "commercial rent relief" yet? That would also help the bottom line.

Online gambling (especially casino /poker) did jump initially in March - they quote 19% and I've seen 30-80% at some of my partners - but as general population job layoffs hit home and uncertainty reigns I expect this boost to disappear and revenues to drop accordingly.

and then there is the old "screw affiliates" backstop to rely on.

[tufty]

GVC and hideous scumbag Kenny Alexander have already screwed affiliates, so little room for savings there. Gala, Coral, Ladbrokes - stolen the lot. Would love to see GVC and Kenny Alexander crash and burn, but will never happen.

[Cash Bonus]

Without a doubt, the casino operators will always work towards what will benefit them more and will always put themselves ahead of their affiliates in terms of financial gain. This has to be expected.

[mickyfu]

GVC and hideous scumbag Kenny Alexander have already screwed affiliates, so little room for savings there. Gala, Coral, Ladbrokes - stolen the lot. Would love to see GVC and Kenny Alexander crash and burn, but will never happen.

I'd like to see him out and about.

[tufty]

I'd like to see him out and about.

Lol. I did see the scumbag was at Cheltenham Festival, skulking out of camera shot where possible despite owning a winner.