GVC Holdings is the biggest gaming and betting group in the world with a stellar portfolio of businesses and household bookmakers. The breadth of the group’s gambling companies – including Ladbrokes, Coral, Bwin, Eurobet and many more – means they are licensed and operational in over 20 countries.
The first figures for 2020 look promising despite COVID-19 worries. Overall Net Gaming Revenue (NGR) increased by one per cent in the first quarter. Their online gaming businesses have remained in a strong position with an 18 per cent NGR. This is down to the previous development and attention to detail of their best casino sites. The market has been especially drawn to PartyCasino, which offers classic gaming experiences, slots and live dealer games.
GVC to receive £200m from VAT overpayments
GVC Holdings is due a £200 million windfall. The news comes after the UK Government has decided not to appeal an industry-wide ruling over VAT payments. The ruling stated that VAT was incorrectly added to specific betting machines within licensed premises.
A challenge to the VAT ruling was launched by one external bookmaker which has quickly snowballed across the UK’s gambling industry. The collective amount that UK gambling companies expect to receive back from HMRC is over £1 billion – and GVC Holdings are anticipating an estimated £200 million back from their VAT overpayments.
This money will be repaid at a crucial time, but there is evidence to suggest that GVC Holdings has remained strong despite the pandemic.
GVC board refusing bonuses and taking pay cut
GVC’s board of directors, along with members of the executive committee, have pledged not to take their annual bonuses in 2020 and have also agreed to take a three-month pay cut of 20 per cent. The news comes off the back of the current global issues. And a way to help the company as well as its staff in these trying times.
GVC agrees revolving £350m credit facility
The gaming giant has also agreed on a new revolving credit facility with its lending banks. This means GVC can realistically aim to reduce its cash flow to break even. The news has strengthened GVC's financial position at times when many industries may be wobbling. At the end of March, GVC spokespeople stated the group has access to around £350 million.
Rob Wood, the chief financial officer at GVC Holdings, went on to state how the group's early decision making has enabled them to confidently predict that they will meet their targets despite the current global situation.
What next for GVC Holdings?
For most businesses in early 2020, the plan of attack is to stabilize the ship during the current storms. GVC have been one of the groups to act early and make sure that happens. Thus, it will allow them to continue their growth for the rest of 2020 by taking advantage of new opportunities, as recently mentioned by Rob Wood himself.
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