GVC Holdings shares plummet 18% in one day

[The Buzz]

Shares of GVC Holdings fell about 18 percent on Friday and were on track for their worst day in nine years, after the Ladbrokes-owned company offloaded some of its stock at a discount.

From Reuters:

Major regulatory changes on both sides of the Atlantic for the gambling sector has commanded investor attention in recent months, but GVC has been able to weather out the storm and reported strong results.

The company this week, however, spooked some investors after warning that a cut to the maximum stake on fixed-odds betting terminals (FOBTs) would result in the closure of up to a thousand shops and impact core earnings by about 135 million pounds ($176.6 million) in 2019.

Chief Executive Officer Kenneth Alexander and Chairman Lee Feldman together sold 3 million GVC shares at a discounted price of 666 pence, seen by investors as a lack of confidence in the bookmaker.

The company's shares fell as much as 17.8 percent to 562 pence on Friday, and were at the bottom of London's midcap index. Shares in rivals William Hill Plc, Paddy Power Betfair Plc and 888 Holdings Plc were also in the red.

"Both of us remain fully committed to GVC and, whilst I continue to have the support of our shareholders, I'm here for the long term and at the very least I have a current plan that will take 3 plus years to accomplish," Alexander said.

Read more here: https://www.nasdaq.com/article/ladbr...20190308-00200

[-Shay-]

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