With 43 per cent of group NGR generated from sporting events, GVC Holdings, parent of brands including bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportinghbet, said that coronavirus is going to have a major impact on EBITDA.
Having started the year well, with NGR up five per cent and its online NGR up 15 per cent, that cannot continue with the spread of the virus impacting sport.
The UK group noted that football’s Euros are to be postponed until next year and other matches are cancelled until July. Horse racing, including Aintree and Royal Ascot, are cancelled and other racing is behind closed doors and the retail estate is impacted with closures in Italy and Belgium for three months.
“This means that there will be substantially fewer sporting events through to August of this year and EBITDA may be down by £130m to £150m. If shops in the UK are closed we anticipate EBITDA would be down by £45m to £50m per month, including employment costs of approximately £20m per month.”
The group has access to considerable revolving credit if it needs it, said a statement and there was also accessible cash of £260m.
