GVC flags £43m EBITDA blow as retail faces second shutdown

GVC could see £43m wiped from company EBITDA if its entire retail operation is forced to close as part of UK and European Covid-19 restrictions. The FTSE 100 operator confirmed the bulk of the hit would come from closures to its UK retail portfolio of Ladbrokes and Coral shops, accounting for £34m – almost 80% of the £43m total. If the closures continue for the whole of November as predicted, European retail would inflict a further £9m hit to the firm’s EBITDA. “The wellbeing, safety and security of our colleagues and customers is of paramount importance to us,” said GVC in a statement. “We are following government advice in each area of our operations and are enacting contingency plans to minimise the impact on the business.”

The guidance comes following UK Prime Minister Boris Johnson’s confirmation of a second Covid-19 lockdown across England between 5 November and 2 December. Under the month-long circuit breaker, which is designed to slow rising infection rates, all non-essential retail outlets will be forced to close, including betting shops and casinos. Elsewhere, GVC-owned shops in Scotland and Northern Ireland are open at present, with betting shops in Wales expected to reopen on 9 November following the country’s month-long lockdown. Across the EU, betting shops in the Republic of Ireland are expected to remain closed until 2 December, with all betting shops in Belgium out of action until 13 December. In Italy, betting shops, but not corner outlets, remain closed until 24 November following the implementation of a strict lockdown by Prime Minister Giuseppe Conte in October. GVC operates more than 3,000 betting shops across the UK, with 2,445 shops in England alone. Significant Covid-19 protective measures were implemented across the operator’s retail portfolio after the relaxation of lockdown measures in June, including social distancing signs, so-called sneeze screens to separate staff from punters and enhanced cleaning measures.