Online surge softens Covid blow for betting giant GVC

Ladbrokes Coral owner GVC Holdings said it had produced an "encouraging performance" in the first half of the year, despite the disruption caused by the coronavirus pandemic.

The company revealed that group underlying earnings were down five per cent at £348.6 million as it unveiled its interim results on Thursday, and forecast that its full-year Ebitda (earnings before interest, tax, depreciation and amortisation) was expected to be between £720m-£740m. Profit after tax was flat year-on-year at £2.1m.

GVC said online growth in the first half of the year was very strong, despite the disruption to the sporting calendar, with total net gaming revenue (NGR) up 19 per cent on the previous year.

It added that the company's UK retail estate had "performed strongly" until betting shops were forced to shut their doors due to lockdown but with stores closed for the majority of the second quarter like-for-like NGR in the half was down 50 per cent.

GVC said results in horseracing and football had been "favourable", adding that: "The Cheltenham Festival was the last major event before lockdown with results well ahead of 2019."

The company has undergone a turbulent few weeks, with last month's shock news that chief executive Kenny Alexander was set to step down after 13 years at the helm being swiftly followed by the announcement that HM Revenue & Customs (HMRC) had widened its investigation into GVC's former online gambling operation in Turkey.

There was no further update on that news, although chairman Barry Gibson told analysts that the letter from HMRC had arrived "out of the blue" on July 20, four days after the announcement of Alexander's departure, adding that GVC was co-operating fully with the inquiry.

GVC Holdings chief executive Shay Segev

Alexander has been succeeded by Shay Segev, who said of the results: "Given the unprecedented trading environment, GVC has delivered an encouraging performance in the first half.

"It underlines the strength of our diversified business model and the expertise, adaptability and dedication of our people. These results show that we have a strong foundation."

Segev said GVC had four main priorities, "leading the US market, organic growth, expanding into new markets and being the most responsible operator in our industry".

He added: "Our industry-leading technology will enable us to grow responsibly and sustainably, using our data-driven customer insights to ensure all of our customers have an enjoyable and safe experience while gaming with us. That is how we'll deliver greater and more sustainable value for all our stakeholders."

GVC shares closed the day up nearly two per cent at 800p.

Goodbody Stockbrokers gaming and leisure analyst Gavin Kelleher said of the results: "The underlying performance in online remains very encouraging, and UK retail continues to show positive signs of recovery."

Read more:

GVC share price falls as tax authorities widen investigation into former company

Betting titan Kenny Alexander departs GVC to usher in new era

GVC reduces number of betting shop closures after "game of poker" with rivals

Shareholder revolt: anger over executive pay at Ladbrokes Coral owner GVC

Ladbrokes Coral owner reports £50m-a-month hit from coronavirus outbreak

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