Industry News
GVC Holdings: Q1 Trading and COVID-19 Planning Update
GVC Holdings PLC, the global sports betting and gaming group, today reports trading for the period from 1 January to 31 March 2020 (“Q1”) and provides a further update on the impact of COVID-19 and the mitigating actions being taken. This follows the Group’s previous announcements of 16 and 17 March 2020.
Summary
- GVC started the year well, with Group net gaming revenue (“NGR”) +1% and Online NGR up +19%cc1 in the first quarter
- However, the closure of retail outlets and the cancellation of sports events significantly reduced revenue from mid-March
- In previous announcements the Group estimated the impact of COVID-19 before any mitigating actions equates to a reduction in EBITDA2 of approximately £100m3 per month
- However, following the initiation of a number of mitigating actions the Group now expects to reduce this EBITDA impact to approximately £50m per month
- As a result, the average monthly cash outflow would be limited to approximately £15m per month, and the Group is confident that further cost actions will enable it to achieve its target of reducing the cashflow to breakeven
- The Group’s financial position remains robust, however given the ongoing uncertainty regarding timings of the easing of shutdown measures around the world, the Board has taken the prudent decision to withdraw the second interim dividend that is due for payment on 23 April 2020
Kenneth Alexander, GVC’s CEO, commented:
“As our Q1 trading numbers once again demonstrate, GVC is a business that, in normal times, delivers an outstanding performance. However, while our global and product diversification is standing us in good stead during the current uncertainty, the COVID-19 pandemic is posing an unprecedented challenge to our business and our industry. We are responding decisively, and have put in place a range of measures to keep our people safe, strengthen our financial position, limit cash outflow, preserve jobs and maintain a compelling customer offer. I am confident that we will emerge from this period in a position of strength, and we will be well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us.
“We are also sensitive to the fact that at this time of economic stress and isolation, it is vital that we ensure a safe, responsible and enjoyable gaming environment for our customers and do everything that we can to minimise the potential for harm. Accordingly, not only have we supported the Betting and Gaming Council’s 10 pledge action plan on safer gambling, but we have gone further and introduced a range of additional safeguarding measures to ensure that we are able to rigorously monitor and protect anyone who may be vulnerable at this time.
“Finally, I would like to thank our outstanding teams around the world for the manner in which they have rapidly adapted to the challenge, and for their continuing hard work and commitment to ensuring GVC’s long-term success.”
Current trading
In its 2019 full year results on 5 March 2020, GVC reported that the current year up to 23 February 2020 had started strongly. That momentum continued until the Group started to see the impact of COVID-19 on sporting events and store closures in mid-March.
The performance of the Group for the year to 31 March 2020 is set out in the table below, with key highlights as follows:
- Total Group NGR +1% (+2% cc1)
- Online NGR +16% (+19% cc1), with continued strong growth in all major territories
- UK Retail like-for-like (“LFL”)4 NGR -19%
- European Retail NGR -3% (flat cc1) supported by continued market share gains in Italy
- For the period 1 January to 15 March 2020 all divisions performed strongly, supported by favourable sports margins:
- Group NGR +9% (+11% cc1)
- Online performed strongly across both gaming and sports, with NGR +20% (+23% cc1). Since then there has been an encouraging performance in gaming in the absence of sporting events, in line with the Group’s expectations
- UK Retail like-for-like (“LFL”)4 NGR -5% despite the annualisation of the triennial review impacts
- European Retail delivered strong NGR growth at +20% (+24% cc1)
| Period 1 January to 31 March 2020 | ||||
| Total NGR | Total NGR cc1 | Sport Wagers | Sports Margin | |
| Online | ||||
| Sports | 17% | 21% | (12%) | 2.5pp |
| Gaming | 17% | 18% | ||
| Total Online | 16% | 19% | ||
| UK Retail (LFL3) | (19%) | (19%) | (8%) | 3.3pp |
| European Retail | (3%) | flat | (21%) | 3.7pp |
| Total Group | 1% | 2% | ||
For the avoidance of doubt, the guidance provided on 5 March 2020 is withdrawn.
Impact of COVID-19
On 16 and 17 March 2020 GVC provided assessments of the impact of cancellations of sporting events and store closures on Group EBITDA3 for the year to 31 December 2020. These announcements were based on the Group’s modelling which assumed that: a) football is suspended across Europe; b) major sporting events are cancelled or postponed (Aintree, Royal Ascot, Euro 2020 etc); c) horse racing in the UK and Ireland is suspended; d) all retail outlets in the UK, Republic of Ireland and mainland Europe are closed; and e) there would be a modest increase in GVC’s gaming business which accounts for 57% of Online NGR. Taken together, GVC estimated that these events would result in a reduction in EBITDA of approximately £100m3 per month before any mitigating actions. This would break down by the Group’s key reporting divisions as approximately 20% for Online, 63% for UK Retail and 17% for European Retail.
Mitigating actions
GVC’s teams around the world are working hard to reduce costs and re-prioritise activity in order to preserve free cash, whilst continuing to offer its customers great gaming experiences and to position the Group to emerge from the current restrictions in a position of strength. A number of opportunities have been identified so far which reduce costs by approximately £50m per month.
For example, in the UK GVC is eligible to receive the government grant towards employment costs as we furlough retail colleagues and retain them on full pay, as well as the business rates relief, which together the Group estimates will reduce costs by nearly £20m per month.
In Italy and Belgium GVC operates a franchising model where the store operating costs (rent, employment, utility and other costs) primarily reside with the franchisee.
Other measures taken include reductions in online sports marketing, sports content and trading costs.
Resultant estimated cash outflow
After adjusting for the impact on EBITDA, adding additional cash costs incurred (such as interest, capex, tax and other costs) and allowing for retail capex reduction, the average monthly cash outflow would be approximately £15m per month. The Group continues to work through cost mitigation opportunities and is targeting a break-even cashflow per month objective, thereby preserving cash at broadly current levels during this period of retail closures and reduced sporting events.
The following table sets out, for illustrative purposes only, the effect of our modelling and mitigating actions on EBITDA and average cashflow over a month of severe COVID-19 impacts:
| Impacts of COVID-19 and mitigations | Estimated average monthly amounts |
| Consensus EBITDA2 for FY2020 as at 31/1/20 | £65m |
| Total EBITDA impact before mitigating actions | £(100)m |
| Mitigating actions | £50m |
| Net EBITDA | £15m |
| Other cash costs incurred (including capex, interest, tax and other items) after retail capex mitigation | £(30)m |
| Net cash utilisation | £(15)m |
Financial position
GVC is in a robust financial position, with net debt/EBITDA as at 31 December 2019 of 2.69x. The Group had accessible cash of over £350m at 31 March 2020, of which over £250m is cash at hand after excluding cash held on behalf of customers, cash in shops, ringfenced PSP funds and other items which may not be immediately available.
In addition, GVC has a £550m Revolving Credit Facility (RCF) which is currently undrawn. This facility has a financial covenant which is only tested if the facility is drawn by more than 35% at a quarter-end. The covenant measure is calculated on a trailing 12-month pre IFRS 16 basis with a net debt/EBITDA limit of 4X. Unrealised synergies can be added to EBITDA.
GVC currently has two bonds in issue, totalling £500m. One of £100m is due 2022 and one of £400m is due 2023. In addition, the Group has Term Loans of €1,125m and $786m, both due 2024.
Dividend
Due to the ongoing uncertainty as to how long restrictions as a result of COVID-19 will be in place around the world, the Board has taken the prudent decision to withdraw the payment of the second interim dividend of 17.6p per share announced on 5 March 2020. This was due to be paid on 23 April 2020 with a total cash cost of £103m. However, the Board recognises the importance of dividends as a part of shareholder returns and will consider dividends with future results announcements.
2019 Annual Report and Annual General Meeting (“AGM”) and Directors Remuneration
The Group’s annual report for 2019 is today published on the Group’s website at gvc-plc.com. Copies will be posted to those shareholders requesting a hard copy as soon as it is practical to do so. The 2020 AGM was scheduled to be held on 30 April and in normal circumstances an AGM Notice would be circulated with the annual report. Owing to the public health guidance on social distancing, the Board has decided to postpone the AGM. The Group will issue an AGM Notice once the Board is confident it can safely hold a meeting on a specified date.
The 2019 Annual report sets out details of the directors’ 2019 incentive outcomes and 2020 implementation. However, the payment of directors’ 2019 bonuses and the grant of the 2020 LTIP awards have been postponed. The Remuneration committee will consider the impact of COVID-19 on GVC’s performance and remuneration in due course and review the implementation of the policy for 2020 as appropriate.
Notes
- Growth on a constant currency basis is calculated by translating both 2020 and 2019 performance at the 2020 exchange rates.
- As at 31 January 2020, company compiled EBITDA consensus for the financial year to 31 December 2020 was £776.3m on a pre-IFRS 16 basis.
- The £100m approximate impact on monthly EBITDA is derived from the two announcements of 16 & 17 March as follows: The EBITDA impact over 3.5 months of sports and major events cancelations and European Retail closures of approximately £130m – £150m equating to approximately £37m – £43m per month; the EBITDA impact of UK Retail store closures of approximately £45m – £50m per month; and the EBITDA impact of the cancellation of horse racing in the UK & Ireland of approximately £20m- £25m per month. Taking each of these at the mid-point and allowing for overlap derives an approximate monthly impact on EBITDA of £100m.
- UK Retail numbers are quoted on a LFL basis. During the period, there were an average of 3,131 shops in the estate, compared to an average of 3,464 in the same period last year.
About GVC Holdings PLC:
GVC Holdings PLC is one of the world’s largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The Group owns proprietary technology across all of its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. The Group has also entered into a joint-venture with MGM Resorts to capitalise on the sports-betting and gaming opportunity in the US. The Group, incorporated in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 20 countries, across five continents.
For more information see the Group’s website: www.gvc-plc.com
Industry News
Europe Sports Betting Market Size, Share & Trends Analysis Report 2024-2030 Featuring Bet365, William Hill, Betfair, Paddy Power, 888sport, Bwin, Unibet, Ladbrokes, MGM, and Betsson
The “Europe Sports Betting Market Size, Share & Trends Analysis Report by Type, Platform, Sports Type (Football, Basketball, Baseball, Horse Racing, Cricket, Hockey, Others), Country, and Segment Forecasts, 2024-2030” report has been added to ResearchAndMarkets.com’s offering.
The Europe sports betting market size is anticipated to reach USD 65.54 billion by 2030 and is expected to expand at a CAGR of 9.9% from 2024 to 2030
The globalization of sports and the integration of international leagues and tournaments into European betting markets have fueled the growth of sports betting. Major sporting events such as the FIFA World Cup, UEFA European Championship, Wimbledon, and the Olympics attract widespread attention and betting interest from European consumers, driving significant betting volumes and revenues for sports betting operators, thus driving the growth of the sports betting market in Europe.
The COVID-19 pandemic had a negative impact on the European sports betting market. The cancellation or postponement of sports events during the pandemic restrained the market growth. With major tournaments, leagues, and competitions either suspended or canceled outright, the absence of live sports events severely diminished consumer betting opportunities. It led to a significant decline in betting volumes and revenues for sports betting operators.
The presence of favorable betting policies in the region is driving the growth of the sports betting market in the region. Many European countries, such as the UK, Ireland, Denmark, and France, have progressive policies promoting a competitive and well-regulated betting market. It facilitates the entry of new operators into the market and encourages competition, leading to innovation, improved services, and better value for consumers.
Moreover, established responsible gambling initiatives and regulatory bodies in Europe, such as the European Gaming & Betting Association, help build trust and confidence among consumers by promoting responsible gambling practices, ensuring fairness and transparency in betting operations, and providing avenues for dispute resolution, to protect consumers and maintain the integrity of the betting market, thus driving the growth of sports betting market in the region.
Europe Sports Betting Market Report Highlights
- Based on the type of betting, the fixed odd wagering segment accounted for the highest revenue share of 27.7% in 2023 due to the stability and predictability of the payouts
- Based on platform, the online segment dominated the market in 2023 and is expected to grow at a significant CAGR from 2024 to 2030. It can be attributed to the collaborations between sports teams, leagues, and betting companies, thus increasing the visibility of sports betting and attracting a larger customer base.
- In terms of sports type, the football segment accounted for the largest revenue share in 2023. It can be attributed to the popularity of football in Europe due to popular football clubs like Real Madrid, Liverpool FC, FC Barcelona, and Manchester United.
- The UK held a significant share of 34.6% in 2023 and is expected to grow at a significant CAGR during the forecast period. Favorable gambling policies in the country drive the market’s growth.
Company Profiles
- Bet365
- Ali William Hill
- Betfair
- Paddy Power
- 888sport
- Bwin
- Unibet
- Ladbrokes
- MGM Resorts International
- Betsson
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 80 |
| Forecast Period | 2023 – 2030 |
| Estimated Market Value (USD) in 2023 | $33.75 Billion |
| Forecasted Market Value (USD) by 2030 | $65.54 Billion |
| Compound Annual Growth Rate | 9.9% |
| Regions Covered | Europe |
Key Topics Covered:
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
2.1. Market Outlook
2.2. Segment Outlook
2.3. Competitive Insights
Chapter 3. Europe Sports Betting Market Variables, Trends & Scope
3.1. Market Lineage Outlook
3.1.1. Parent market outlook
3.1.2. Related/ancillary market outlook
3.2. Market Dynamics
3.2.1. Market driver analysis
3.2.1.1. Increasing number of sport events
3.2.1.2. Growing number of sporting events and leagues in Europe
3.2.2. Market restraint analysis
3.2.2.1. Lack of unified regulations
3.2.3. Market opportunity analysis
3.2.3.1. Growth in E-sports audience
3.3. Europe Sports Betting Market Analysis Tools
3.3.1. Industry Analysis – Porter’s
3.3.2. PESTEL Analysis
Chapter 4. Europe Sports Betting Market: Platform Estimates & Trend Analysis
4.1. Platform Market Share, 2023 & 2030
4.2. Segment Dashboard
4.3. Europe Sports Betting Market by Platform Outlook
4.4. Market Size & Forecasts and Trend Analyses, 2018 to 2030
4.4.1. Offline
4.4.2. Online
Chapter 5. Europe Sports Betting Market: Type Estimates & Trend Analysis
5.1. Type Market Share, 2023 & 2030
5.2. Segment Dashboard
5.3. Europe Sports Betting Market by Type Outlook
5.4. Market Size & Forecasts and Trend Analyses, 2018 to 2030
5.4.1. Fixed odds wagering
5.4.2. Exchange Betting
5.4.3. Live/In Play Betting
5.4.4. eSports Betting
5.4.5. Others
Chapter 6. Europe Sports Betting Market: Sports Type Estimates & Trend Analysis
6.1. Sports Type Market Share, 2023 & 2030
6.2. Segment Dashboard
6.3. Europe Sports Betting Market by Sports Type Outlook
6.4. Market Size & Forecasts and Trend Analyses, 2018 to 2030
6.4.1. Football
6.4.2. Basketball
6.4.3. Baseball
6.4.4. Horse Racing
6.4.5. Cricket
6.4.6. Hockey
6.4.7. Others
Chapter 7. Europe Sports Betting Market: Regional Estimates & Trend Analysis
7.1. Regional Market Share Analysis, 2023 & 2030
7.2. Regional Market Dashboard
7.3. Regional Market Snapshot
7.4. Market Size, & Forecasts Trend Analysis, 2018 to 2030
7.4.1. UK
7.4.2. Germany
7.4.3. France
7.4.4. Italy
Chapter 8. Competitive Landscape
8.1. Recent Developments & Impact Analysis, By Key Market Participants
8.2. Company/Competition Categorization
8.3. Vendor Landscape
8.3.1. List of key distributors and channel partners
8.3.2. Key customers
8.4. Company Profiles
For more information about this report visit researchandmarkets.com
Industry News
Leading online slot developer announces launch of Snoop’s High Rollers which will go live exclusively with popular crypto sportsbook and casino
Gaming Corps, a publicly listed game development company based in Sweden, has signed a major deal that will see it launch an exclusive slot game in collaboration with rap legend, Snoop Dogg. The game will drop exclusively on Roobet, the online casino where Snoop Dogg is a brand ambassador.
Snoop Dogg needs no introduction. He made his music industry debut when he appeared on Dr Dre’s 1992 album, The Chronic, and has since sold more than 50 million albums worldwide. He’s also made several movie and TV show appearances, making him one of the most iconic artists of all time.
The game is “Snoop’s High Rollers” and allows players to experience what it’s like to live life as a music legend. The soundtrack is inspired by Snoop’s early and later works and the main man has also narrated parts of the game to really bring it to life.
Snoop has also played a part in creating the gameplay, hand-picking mechanics and bonus features to really put his stamp on the game. Roobet has also got in on the action, leading to a unique online slot that will soar to the top of the charts among its players.
Snoop’s High Rollers will make its debut exclusively on Roobet, the crypto casino and sportsbook that has taken the market by storm since its launch in 2019. The casino’s team has put a comprehensive marketing strategy behind the game with plans to use it to drive new customer acquisition at scale.
“It is with much pride that we at Gaming Corps have had the chance to develop a game in close collaboration with Snoop Dogg and Roobet, where we have combined our unique gaming perspective with Snoop Dogg’s unparalleled style and charisma,” Juha Kauppinen, Gaming Corps CEO, said:-
“Our vision is to offer players an experience where music, culture and gaming merge into something extraordinary. Our close collaboration with Roobet has enabled us to do the impossible, namely world-class marketing, game release is planned for 20 of April. We’re thrilled, and discussions are already underway about several game concepts!”
Anthony Brennan, Head of Partnerships at Roobet, added: “Roobet loves pushing the envelope and never flinches at an opportunity to bring iGaming and pop culture together. Snoop loves his game, we love the game, and we’ve been delighted at the experience of building something that feels fresh in an industry full of remixes.
“We can’t say enough nice things about the Gaming Corps team, and we’re excited to hear what the gaming community has to say!”
IDnow, a leading identity verification provider in Europe, has unveiled VideoIdent Flex, a new version of its expert-led video verification service that blends advanced AI technology with human interaction. The human-based video call solution, supported by AI, has been designed and built to boost customer conversion rates, reduce rising fraud attempts, increase inclusivity, and tackle an array of complex online verification scenarios, while offering a high-end service experience to end customers.
The company’s original expert-led product, VideoIdent, has been a cornerstone in identity verification for over a decade, serving the strictest requirements in highly regulated industries across Europe. VideoIdent Flex, re-engineered specifically for the UK market, represents a significant evolution, addressing the growing challenges of identity fraud, compliance related to Know-Your-Customer (KYC) and Anti-Money Laundering (AML) processes and ensuring fair access and inclusivity in today’s digital world outside of fully automated processes.
As remote identity verification becomes more crucial yet more challenging, VideoIdent Flex combines high-quality live video identity verification with hundreds of trained verification experts, thus ensuring that genuine customers gain equal access to digital services while effectively deterring fraudsters and money mules. Unlike fully automated solutions based on document liveness and biometric liveness features, this human-machine collaboration not only boosts onboarding rates and prevents fraud but also strengthens trust and confidence in both end users and organisations. VideoIdent Flex can also serve as a fallback service in case a fully automated solution fails.
Bertrand Bouteloup, Chief Commercial Officer at IDnow, said: “VideoIdent Flex marks a groundbreaking advancement in identity verification, merging AI-based technology with human intuition. In a landscape of evolving fraud tactics and steady UK bank branch closures, our solution draws on our decade’s worth of video verification experience and fraud insights, empowering UK businesses to maintain a competitive edge by offering a white glove service for VIP onboarding. With its unique combination of KYC-compliant identity verification, real-time fraud prevention solutions, and expert support, VideoIdent Flex is a powerful tool for the UK market.”
Whereas previously firms may have found video identification solutions to be excessive for their compliance requirement or out of reach due to costs, VideoIdent Flex opens up this option by customising checks as required by the respective regulatory bodies in financial services, mobility, telecommunications or gaming, to offer a streamlined solution fit for every industry and geography.
Bouteloup added: “Identity verification is incredibly nuanced; it’s as intricate as we are as human beings. This really compounds the importance of adopting a hybrid approach to identity – capitalising on the dual benefits of advanced technology when combined with human knowledge and awareness of social cues. With bank branches in the UK closing down, especially in the countryside, and interactions becoming more and more digital, our solution offers a means to maintain a human relationship between businesses and their end customers, no matter their age, disability or neurodiversity.
“VideoIdent Flex is designed from the ground up for organisations that cannot depend on a one-size-fits-all approach to ensuring their customers are who they say they are. In a world where fraud is consistently increasing, our video capability paired with our experts adds a powerful layer of security, especially for those businesses and customers that require a face-to-face interaction.”
The MAC Europe Partner Marketing Conference is back!
Wazdan amplifies Swiss presence with Swiss4Win launch
WhichBingo Reveals 2024 Award Winners at 10th Anniversary of the WhichBingo Awards
Bet365 Debuts its Bespoke Live Game Show Super Mega Ultra in Collaboration with Playtech
Aleatrust Signs Up as Supporting Member of the Austrian Sports Betting Association
Good 1st quarter of 2024 for FDJ, in line with Group projections
47 New Brands in Q1’24: Affilka by SOFTSWISS Results
Clarion Gaming film Virtual Tour showing scale of opportunity for ICE and iGB Affiliate exhibitors in Barcelona
1Stop Translations Partners with Suss Ads
GiG bags a brace of deals for Spain and Argentina, with two new partners for its iGaming platform CoreX and Sportsbook, SportX
2024 Gaming in Spain Conference
HIPTHER’s Prague Gaming & TECH Summit 2024 reaches new milestones with record registrations and prominent sponsors
IGT Announces Executive and Board Leadership Changes
HIPTHER’s Prague Gaming & TECH Summit 2024 Boasts All-star Sponsors and Record Registrations
Meet GR8 Tech at the Prague Gaming & TECH Summit on March 26-27
The Nomination Committee’s Proposal of Catena Media’s Board of Directors at the Annual General Meeting 2024
-
Conferences in Europe7 days agoSpanish Advertising Restrictions Struck Down: Learn More at the 2024 Gaming in Spain Conference
-
Balkans7 days ago
Making a Bang in Bulgaria! Hacksaw Gaming goes live with Alphawin
-
eSports7 days ago
Copenhagen Major 2024 – Betting Overview
-
Compliance Updates7 days ago
IOC and UEFA host joint betting integrity workshop
-
Latest News7 days ago
Week 15/2024 slot games releases
-
Gaming7 days ago
Sortium Revolutionizing Video Game Development with Groundbreaking AI Tools Launch and $4 Million+ Funding Round
-
Compliance Updates4 days ago
Bet on Compliance: Navigating the Stakes with the UK’s Affordability Checks
-
Latest News7 days ago
CasinoBeats Game Developer Awards 2024 Shortlists Announced
