Prominent online casino and sportsbook operator GVC Holdings has warned investors that its annual earnings before interest, tax, depreciation and amortization could fall by as much as £150 million ($175.9 million) this year as a result of the ongoing global coronavirus pandemic.
The London-listed firm is responsible for such domains as PartyPoker.com, Bwin.com and Coral.co.uk and used an official Monday press release to explain that the decline is due to the fact that the coronavirus outbreak has led to the cancellation or delay of a number of this year’s live sporting events including the UEFA European Football Championship, the Six Nations Championship and the Royal Ascot horseracing extravaganza.
Headquartered on the Isle of Man, GVC Holdings had earlier detailed a rise of 5% year-on-year in net gaming revenues for the seven weeks to February 23 with associated online takings improving by 16%. However, the firm revealed that approximately 45% of such earnings in 2019 had come from live sporting events with these activities moreover accounting for some 43% of its total online income.
GVC is moreover behind British sportsbook giant Ladbrokes Coral Group and was recently forced to shutter its land-based betting shops in Belgium and Italy for three months due to concerns over the spread of the potentially-fatal coronavirus strain. It stated that a similar shutdown in the United Kingdom could cost it an additional £50 million ($58.5 million) per month, which would encompass around £20 million ($23.4 million) in associated ‘employment costs.’
But, Kenneth Alexander (pictured), Chief Executive Officer for GVC, used the press release to declare that his firm ‘retains a strong balance sheet’ as well as an undrawn revolving credit facility worth in the region of £550 million ($645.3 million) and about £260 million ($305 million) in ‘accessible cash’. He also pronounced that the operator ‘continues to monitor events’ associated with the coronavirus epidemic and currently has ‘the flexibility to take appropriate actions as required.’
Read a statement from Alexander…
“While we do not underestimate the challenge presented by coronavirus, we are in a robust position to manage the impact on our operations. We are a diverse global business with an experienced and expert management team that operates across multiple products and markets. Our priority is to protect our employees while maintaining our offer to our customers at this difficult time.”