GVC Holdings has reported that the impending four-week lockout by the UK government would cost the FTSE100 business an estimated £ 37 million.
GVC issued EBITDA impact estimates on retail closures that have been reported and approved over the past week across England and Europe by releasing a market update.
GVC reports that it will absorb £ 37 million in corporate losses should current circumstances continue, under which England’s non-essential companies are expected to temporarily close alongside the imposed lockdowns in Italy (until 24 November) and Belgium (13 December).
The retail closure of England would cost a projected £ 27 million for the FTSE betting company alone, while the closure of its subsidiaries Eurobet Italia and Ladbrokes BE is estimated at £ 10 million.
However, if the Wales and Scotland governments duplicate lockout enforcements, a complete UK retail closure would cost the company £34 million, contributing to £43 million in total UK and European retail losses.
“We are following government advice in each area of our operations and are enacting contingency plans to minimise the impact on the business,” GVC said in a statement, before adding that “the safety and well-being of customers and staff were paramount.”
The EBITDA impact assessment this morning follows GVC ‘s recent corporate update in which, citing digital growth across all controlled markets , the company increased its full-year 2020 profit outlook to between £770-790 million.
The interim announcement by GVC Holdings saw the company announce that it will terminate 450 betting shops across the UK, which it attributed to the reduction of £ 2 wagering by the government’s FOBTs.
GVC has today provided an update regarding the impact of enforced store closures across UK and European retail as a result of further restrictions due to COVID-19: https://t.co/Jiq1yRmh6F
— GVC Holdings PLC (@GVCHoldings) November 2, 2020