Impact of suspension of horse racing
17 March 2020
GVC Holdings PLC
("GVC" or the "Group")
Impact of suspension of horse racing due to COVID-19
GVC Holdings PLC (LSE: GVC), the global sports betting and gaming group, today provides a further update to its announcement of yesterday regarding the impact of Covid-19.
The British Horse Racing Authority ("BHA") has today announced the suspension of all horse racing events in the UK until the end of April. The Group estimates that the suspension will have an incremental impact on EBITDA for the financial year to 31 December 2020 of approximately £20m - £25m(1) per month before any mitigating actions.
As outlined in yesterday's announcement, the Group retains a strong balance sheet with net debt/EBITDA as at 31 December 2019 of 2.69x. We have a Revolving Credit Facility of £550m available and a covenant test of 4x net debt/EBITDA(2). This test only occurs if the facility is drawn by 35% or more at the end of a financial quarter. The facility remains currently undrawn and as at 31 December 2019 the Group had accessible cash of £260m.
The Group continues to monitor events and has the flexibility to take appropriate actions as required.
GVC Holdings plc
David Lloyd-Seed, Director of Investor Relations & External Communications
Tel: +44 (0) 203 938 0000
Jennifer Spencer, Investor Relations Manager
GVC Holdings plc
Jay Dossetter, Head of CSR & Corporate Communications
Tel: +44 (0) 203 938 0000
Rob Greening / Elly Williamson
Tel: +44 (0) 20 7250 1446
(1) 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.
(2) Covenants are tested at the end of a financial quarter on a trailing 12 month basis and are calculated on a pre-IFRS 16 implementation basis.
This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, results of our operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. These forward-looking statements include all matters that are not historical facts. By their nature, these statements involve risks and uncertainties since future events and circumstances can cause results and developments to differ materially from those anticipated. Any such forward-looking statements reflect knowledge and information available at the date of preparation of this document. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), the Company undertakes no obligation to update or revise any such forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its directors accept no liability to third parties in respect of this document save as would arise under English law.
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
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