GVC (GVC) will save £103m after electing to cancel its interim dividend, which was due for payment in April. The owner of Ladbrokes Coral has been forced into sweeping measures to slash its cash outflow after the coronavirus outbreak threw the sporting calendar into chaos, prompting the suspension and cancellation of events, along with the closure of its retail outlets.
GVC registered 1 per cent growth in net gaming revenue (NGR) and a 19 per cent lift to online NGR for its first quarter. But the group experienced a 12 per cent drop in sports wagers over its first quarter. Meanwhile, disruption to sports and the closure of physical premises have hammered sports gambling revenues for peers Flutter Entertainment (FLTR) and William Hill (WMH), which contributed 78 per cent and 53 per cent of their 2019 turnover respectively.
The UK government has stepped in to help the high street, including gambling companies, to keep their heads above water. GVC has reduced the envisaged monthly toll of coronavirus on its cash profits from £100m to £50m. It has saved £20m in monthly costs through furloughing arrangements and the business rates holiday, adding that it was confident it could reduce its monthly cash outflow of £15m to a breakeven point with further cost-saving measures.
