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GVC Q1 NGR Up; Now Sees Lower EBITDA Impact Due To Covid-19; Withdraws Dividend

Sports betting and gambling company GVC Holdings PLC (GVC.L) Monday said its first-quarter Group net gaming revenue or NGR increased 1 percent and Online NGR climbed 16 percent amid the COVID-19 crisis. At constant currency rates, Group NGR increased 2 percent and Online NGR climbed 19 percent.

In its trading update, the company said the closure of retail outlets and the cancellation of sports events significantly reduced revenue from mid-March. UK Retail like-for-like NGR fell 19 percent, and European Retail NGR dropped 3 percent.

The company said it now expects the impact of COVID-19 to reduce EBITDA by approximately 50 million pounds per month following the initiation of a number of mitigating actions.

Before any mitigating actions, the company was projecting coronavirus to reduce EBITDA by approximately 100 million pounds per month

The average monthly cash outflow would be limited to approximately 15 million pounds per month, and the company is confident that further cost actions will enable it to achieve its target of reducing the cashflow to breakeven.

Further, the company said its Board has decided to withdraw the second interim dividend that is due for payment on April 23, citing the ongoing uncertainty, even though its financial position remains robust.

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