Business
Q1 trading and COVID-19 planning update
Q1 trading and COVID-19 planning update.
About this update from Entain Plc
[{"type":"text","content":"\n \n \n RNS Number : 8136I\n GVC Holdings PLC\n 06 April 2020\n \n \n \n \n 6 April 2020\n \n \n GVC Holdings PLC\n \n \n (\"GVC\" or the \"Group\")\n \n \n \n \n \n Q1 trading and COVID-19 planning update\n \n \n \n \n \n GVC Holdings PLC (LSE: GVC), 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.\n \n \n \n \n \n Summary\n \n \n ·\n GVC started the year well, with Group net gaming revenue (\"NGR\") +1% and Online NGR up +19%cc1 in the first quarter\n \n \n ·\n However, the closure of retail outlets and the cancellation of sports events significantly reduced revenue from mid-March\n \n \n ·\n 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\n \n \n · \n However, following the initiation of a number of mitigating actions the Group now expects to reduce this EBITDA impact to approximately £50m per month\n \n \n o \n 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\n \n \n ·\n 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\n \n \n \n \n \n Kenneth Alexander, GVC's CEO, commented:\n \n \n \n \n \n \"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 compell...