StockMarketWire.com - Gambling company GVC issued a profit warning, pinned on the cancellation of sporting events due to the spreading coronavirus.

Earnings before interest, tax, depreciation and amortisation for the year through December 2020 would be reduced by about £130m-to-£150m, before mitigating actions.

The guidance was based on an assumption that the Euros would be postponed until 2021 and all other football cancelled until July 2020 and that major horse racing events like Aintree and Royal Ascot would also be cancelled.

If shops in the UK were closed, GVC said that would incrementally reduce EBITDA by about £45m-to- £50m per month, including employment costs of about £20m per month.

GVC said it retained a strong balance sheet, with net debt/EBITDA as at 31 December of 2.69 times.

It also had a revolving credit facility of £550m available and a covenant test of 4 times net debt/EBITDA.

'While we do not underestimate the challenge presented by Covid-19, GVC is in a robust position to manage the impact on our operations,' chief executive Kenneth Alexander said.

'We are a diverse global business, with an experienced and expert management team, which operates across multiple products and markets.'

'Our priority is to protect our employees while maintaining our offer to our customers at this difficult time.'


At 2:28pm: [LON:GVC] Gvc Holdings PLC share price was -100.55p at 371.75p



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