GVC Holdings reveals new growth strategy and rebrand to Entain plc12th November 2020 8:18 am GMT
Leading publicly listed gaming operator GVC Holdings is changing its name to Entain plc. as it launches a new strategy focused on sustainable growth and innovation.
The new strategy includes a commitment to ensure that 100 per cent of Entain’s revenue is derived from nationally regulated markets by the end of 2023, as well as an Advanced Responsibility & Care (ARC) programme designed to further enhance player protection through additional checks and improved monitoring and intervention.
The group’s annual staff bonuses will also be tied to responsible gambling metrics from 2021, while the new Entain Foundation will aim to donate over £100m to supports grass roots sports and sports people over the next five years.
“Today marks an exciting new chapter for the Group, and an important step forward in achieving our ambition of being the world leader in sports betting and gaming,” said chief executive Shay Segev. “Under our new corporate identity, we will continue to use our unique technology platform to build on the exceptionally strong momentum that we have in our existing markets, grow into new markets, reach new audiences, enhance the customer experience, and provide industry-leading levels of player protection.
"We are absolutely committed to pursuing the highest standards of corporate governance, to providing outstanding career development opportunities for our colleagues, and to supporting the communities in which we operate,” Segev added. “Our clear strategy of prioritising sustainability and growth will allow us to achieve these goals, thereby providing long-term value for all of our stakeholders.”
The sustainable growth strategy is described as “unquestionably the right thing to do for the long-term”, although the company warned that it will come at an inevitable costs in the short-term. This is expected to lead to a £40m reduction in 2021 EBITDA, offset by strong underlying growth as the company aims to secure a leading position in the US, enter new markets, and grow its existing markets by expanding to new audiences.
GVC also provided a trading update Thursday, reporting continued strong growth in all major territories thanks to an active sporting calendar and strong gaming performances, as well as improved sports betting margins.
The strong online performance would have added £30m to £40m to EBITDA this year but will instead be offset by the expected £37m cost of COVID-related enforced store closures in the UK. However, the company expects to add approximately £50 million to Online EBITDA in 2021 as a result of the strong growth.
Shares in GVC Holdings plc. (LSE:GVC) closed at 1,019.00 pence per share in London Wednesday, prior to today’s announcement.