GVC revenue increases 1% for Q1 despite coronavirus pandemic
GVC Holdings has reported a rise in revenue for Q1 2020, despite the impact the coronavirus outbreak has caused on its business.
Group net gaming revenue (NGR) increased 1% year-on-year, with online NGR rising by 16%, for the first three months up to 31 March.
While original projections in March suggested EBITDA would result in a £100m ($123m) monthly drop due to the impact of the coronavirus outbreak on sports betting, in its trading update, the operator now expects that figure to be £50m.
As a result, the group is hopeful further cost action will allow it to reduce cashflow to break even, from the current monthly figure of £15m. However, uncertainty has led to the operator withdrawing its second dividend payment that was due on 23 April.
GVC CEO Kenny Alexander said: “While our global 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 industry.
“I am confident 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.”
Last month, GVC reported a 2% yearly rise in pro forma group NGR, to £3.66bn for 2019, and in response to the Betting Gaming Council’s 10-point action plan to protect players during lockdown, the operator introduced its own range of responsible gambling safeguards.
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