GVC discusses FOBTs reduction
The gaming group said that the reduction of the maximum stake on FOBTs will see EBITDA fall by £160 million.
UK.- GVC Holdings, the multinational sports betting and betting company, disclosed during its latest trading update that the reduction on the maximum stake of FOBTs from £100 to £2 will result in the firm’s EBITDA fall by £60 million by the end of 2019.
The company also informed that by the end of the year it expects a £120 million in Group EBITDA by the end of 2018. “The focus in the UK Retail operation over the last two years has been to create a business that is well placed to face these structural and regulatory headwinds. As such we expect to be able to reposition the business within two years following implementation, with an anticipated fully mitigated impact of c£120m on Group EBITDA secured by the end of this period,” says the report.
The first full year of operations under the FOBTs reduction is expected to impact on Group EBITDA by £160 million. “Therefore, we expect to retain a profitable and highly cash-generative UK Retail estate. Furthermore, our proven leading multi-channel expertise presents additional opportunities to drive online growth.”
