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GVC changes name, will exit unregulated markets by end-2023
12th Nov 2020 09:20
(Sharecast News) - Ladbrokes and bwin owner GVC Holdings has rebranded as Entain and said it will commit to relying on nationally regulated markets for all revenue by the end of 2023.
New chief executive Shay Segev unveiled the changes on Thursday as part of his plan to transform and expand the business.
About 4% of the company's revenue currently comes from unregulated markets, which GVC wants to cut to 1% by the end of this year. The new plan will cut operating profit by around £40m in 2021, it said.
Segev replaced Kenny Alexander, who stepped down in July after 13 years in charge having turned the group into one of the world's largest gambling operators.
The company will now focus on sports betting and gaming entertainment, which have boomed while people stay at home during the Covid-19 pandemic.
"The pace of change shows no sign of abating, and new trends are emerging in betting and gaming entertainment that are continually opening up new audiences," the company said in a statement.
It added that it continued to see strong trading since its last update on October 8, driven by the continuation of an active sporting calendar and strong gaming performances in major territories as well as favourable sporting results benefiting margins.
The company said this would lift core earnings by £30m - £40m, largely offsetting the £37mn impact from current enforced store closures under the UK government's second coronavirus lockdown. Full-year 2021 online core earnings forecasts were lifted by £50m, while 2020 full-year profit guidance was still in the £770m - £790m range.
New chief executive Shay Segev unveiled the changes on Thursday as part of his plan to transform and expand the business.
About 4% of the company's revenue currently comes from unregulated markets, which GVC wants to cut to 1% by the end of this year. The new plan will cut operating profit by around £40m in 2021, it said.
Segev replaced Kenny Alexander, who stepped down in July after 13 years in charge having turned the group into one of the world's largest gambling operators.
The company will now focus on sports betting and gaming entertainment, which have boomed while people stay at home during the Covid-19 pandemic.
"The pace of change shows no sign of abating, and new trends are emerging in betting and gaming entertainment that are continually opening up new audiences," the company said in a statement.
It added that it continued to see strong trading since its last update on October 8, driven by the continuation of an active sporting calendar and strong gaming performances in major territories as well as favourable sporting results benefiting margins.
The company said this would lift core earnings by £30m - £40m, largely offsetting the £37mn impact from current enforced store closures under the UK government's second coronavirus lockdown. Full-year 2021 online core earnings forecasts were lifted by £50m, while 2020 full-year profit guidance was still in the £770m - £790m range.