Ladbrokes Coral owner GVC Holdings announces rebrand and new strategy

Ladbrokes and Coral owner GVC Holdings is to be renamed as Entain plc and leave unregulated markets as the company launched a new strategy on Thursday.

The news came as it was confirmed that private equity firm Apollo Global Management had withdrawn from the race to buy GVC's rival William Hill.

GVC said the rebrand reflected its ambition to be "the world leader in sports betting and gaming entertainment" as it outlined its plans for the future under two core strategic pillars of sustainability and growth.

As part of that, GVC will be pulling out of all unregulated markets with the aim that all of the group's revenue would come from markets that are nationally regulated by the end of 2023.

GVC's recent history has not been without controversy over the issue of regulation, with HM Revenue & Customs (HMRC) announcing earlier this year that it had widened an investigation into GVC's former online gambling operation in Turkey, where gambling is restricted.

The company added that responsible gambling metrics were set to be incorporated into remuneration across the group.

GVC said the actions it had announced would reduce ebitda (earnings before interest, taxation, depreciation and amortisation) by £40 million in 2021 but that this would be offset by strong underlying growth in the business.

The operator revealed it had continued to see strong trading since its last trading update in October, thanks to the continuing sporting calendar, strong gaming performance and favourable sports results.

It said that meant an overall benefit to ebitda for the year of approximately £30m to £40m, largely offsetting the £37m impact from betting shop closures. Overall guidance for ebitda for the year remained unchanged in the range of £770m to £790m.

Chief executive Shay Segev said: "Today marks an exciting new chapter for the group, and an important step forward in achieving our ambition of being the world leader in sports betting and gaming.

"Under our new corporate identity, we will continue to use our unique technology platform to build on the exceptionally strong momentum that we have in our existing markets, grow into new markets, reach new audiences, enhance the customer experience, and provide industry-leading levels of player protection.

"We are absolutely committed to pursuing the highest standards of corporate governance, to providing outstanding career development opportunities for our colleagues, and to supporting the communities in which we operate. Our clear strategy of prioritising sustainability and growth will allow us to achieve these goals, thereby providing long-term value for all of our stakeholders."

The news that Apollo does not intend making a bid for William Hill leaves the way clear for US casino giant Caesars Entertainment to buy the bookmaker.

It was announced in September that Caesars had agreed to buy William Hill for £2.9 billion. Hills' shareholders are due to vote on the deal next week.

Caesars have said they intend to find new owners for William Hill's non-US business, with Apollo reported to be among the potential suitors along with Betfred owner Fred Done.

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