GVC Holdings PLC - Impact of sporting cancellations
("GVC" or the "Group")
Impact of sporting cancellations as a result of Covid-19
As the spread of Covid-19 continues across the world, the well being, safety and security of our colleagues and customers is of paramount importance to us. We are following government advice in each area of our operations and have enacted contingency plans to minimise disruption to the business.
The spread of the virus means that a number of live sporting events are being impacted. In our financial year to
While it is difficult to quantify the precise impact on earnings it is clear that a significant reduction in sporting events will have a material impact on EBITDA in the current financial year. We have therefore modelled a scenario based on the following assumptions:
· Football: the Euros will be postponed until 2021 and all other football will be cancelled until
· Horse Racing: major events such as
· Retail: the retail estate in the
These assumptions would mean that there will be substantially fewer sporting events through to
The Group retains a strong balance sheet with net debt/EBITDA as at
"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."
The Group continues to monitor events and has the flexibility to take appropriate actions as required.
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Tel: +44 (0) 203 938 0000
Tel: +44 (0) 203 938 0000
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Tel: +44 (0) 20 7250 1446
(1) As at
(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.
For more information see the Group's website: www.gvc-plc.com
This information is provided by RNS, the news service of the
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