The coronavirus pandemic is costing GVC Holdings £50m a month from its EBITDA, the company has admitted today.
The group, one of the world’s largest sports betting and gaming companies, with brands such as bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet, plus gaming brands such as Foxy Bingo, Gala, Gioco Digitale and PartyCasino, is bracing itself for a rough ride in the next few months.
But the group says that its financial position "emains robust" and as a precaution it is withdrawing its second interim dividend due for payment on April 23.
In its quarterly trading report, GVC says it started the year well with net gaming revenue up one per cent and online NGR up 19 per cent, but the closure of retail outlets and cancellation of sports events in mid-March significantly reduced revenue.
At first it was predicting a monthly EBITDA reduction of £100m per month, but subsequently actions by the group has mitigated this to £50m per month.