StockMarketWire.com - Gambling company GVC scrapped its dividend and warned revenue had come under pressure since mid-March after it shuttered its retail outlets and cancelled sports events amid the Covid-19 crisis.

The company also said, however, that measures to cut costs would result in a lesser impact than previously expected to earnings.

Following the initiation of a number of mitigating actions, the company said it now expected the impact of Covid-19 to result in a reduction in earnings (EBITDA) of approximately £50m per month, compared with a previous estimate of £100m per month.

'Due to the ongoing uncertainty as to how long restrictions as a result of Covid-19 will be in place around the world, the board has taken the prudent decision to withdraw the payment of the second interim dividend of 17.6p per share announced on 5 March 2020,' the company said.

For the year to 31 March 2020, total net gaming revenue (NGR) rose 1%, with online NGR, up 16%, offset by weaker revenue at its retail outlets.

UK retail like-for-like NGR fell 19% and European Retail NGR fell 3%.




Story provided by StockMarketWire.com