GVC flags £150m EBITDA hit as coronavirus postpones 2020 sporting calendar
London-listed operator suggests further £50m negative impact per month if UK retail is forced to close
GVC Holdings could see annual EBITDA fall by £150m if coronavirus causes the cancellation of Euro 2020 and Royal Ascot.
The London-listed operator modelled a Covid-19 scenario based on Euro 2020 being postponed until 2021 and all football cancelled until July 2020, as well as Aintree and Royal Ascot being called off.
The EBITDA estimate – which could increase by £50m per month if UK retail outlets close– is also based on the operator’s shops in Italy and Belgium being shut down for three more months.
GVC CEO Kenny Alexander
GVC CEO Kenny Alexander said: “While we do not underestimate the challenge presented by Covid-19, GVC is in a robust position to manage the impact on our operations.
“We are a diverse global business, with an experienced and expert management team, which operates across multiple products and markets.
“Our priority is to protect our employees while maintaining our offer to our customers at this difficult time,” he added.
In financial year 2019, approximately 45% of GVC’s net gaming revenue (NGR) was generated from sporting events, with 43% of online NGR generated from sports.
GVC has a revolving credit facility of £550m. The facility remains currently undrawn and as of 31 December 2019, the operator has accessible cash of £260m.
Flutter Entertainment and William Hill have this week also cited potential EBITDA hits of more than £100m as the Covid-19 crisis continues.