GVC Holdings

LN: GVC

£4824.5m market cap

827p last close

GVC Holdings is a leading e-gaming operator in both the B2C and B2B markets. Following the acquisition of Ladbrokes Coral in 2018, it now has a market-leading position in UK retail betting. About 90% of revenues are derived from regulated and/or taxed markets.

Investment summary

Following the resignation of Sports Minister Tracey Crouch, the UK government has bowed to pressure to bring forward the reduction in FOBT stake limits, from October 2019 to April 2019. The planned increase in remote gaming duty (from 15% to 21%) will also commence in April. We reduce our FY19 EBITDA by a further £95m and net debt/EBITDA now peaks at 3.0x in FY19. Our FY20 estimates are broadly unchanged.

Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 1887.2
Forecast gearing ratio (%) 48
Price performance
%
1m
3m
12m
Actual 10.6 2.4 35.6
Relative* 0.2 10.7 52.5
52-week high/low 939.0p/323.7p
*% relative to local index
Key management
Kenny Alexander CEO
Jennifer Spencer IR

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