Business
Impact of suspension of horse racing
Impact of suspension of horse racing.
About this update from Entain Plc
[{"type":"text","content":"\n \n \n RNS Number : 4790G\n GVC Holdings PLC\n 17 March 2020\n \n \n \n \n 17 March 2020\n \n \n GVC Holdings PLC\n \n \n \n \n \n (\"GVC\" or the \"Group\")\n \n \n Impact of suspension of horse racing due to COVID-19\n \n 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.\n \n 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.\n \n 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.\n \n The Group continues to monitor events and has the flexibility to take appropriate actions as required.\n \n \n \n \n Enquiries:\n \n \n \n \n \n \n \n \n Investor Relations\n \n \n GVC Holdings plc\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n David Lloyd-Seed, Director of Investor Relations & External Communications\n \n \n \n \n Tel: +44 (0) 203 938 0000 \n \n \n \n \n \n \n Jennifer Spencer, Investor Relations Manager\n \n \n \n \n \n \n \n ([email protected])\n \n \n \n \n \n \n Media\n \n \n GVC Holdings plc\n \n \n Jay Dossetter, Head of CSR & Corporate Communications\n \n \n \n \n \n \n \n \n \n \n Tel: +44 (0) 203 938 0000\n \n \n \n \n \n \n Powerscourt \n \n \n \n \n \n \n \n \n \n \n \n \n \n Rob Greening / Elly Williamson\n \n \n \n \n Tel: +44 (0) 20 7250 1446\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (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.\n \n \n (2) Covenants are tested at the end of a financial qua...