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GVC Holdings: Q1 Trading and COVID-19 Planning Update
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GVC Holdings PLC, the global sports betting and gaming group, today reports trading for the period from 1 January to 31 March 2020 (“Q1”) and provides a further update on the impact of COVID-19 and the mitigating actions being taken. This follows the Group’s previous announcements of 16 and 17 March 2020.
Summary
- GVC started the year well, with Group net gaming revenue (“NGR”) +1% and Online NGR up +19%cc1 in the first quarter
- However, the closure of retail outlets and the cancellation of sports events significantly reduced revenue from mid-March
- In previous announcements the Group estimated the impact of COVID-19 before any mitigating actions equates to a reduction in EBITDA2 of approximately £100m3 per month
- However, following the initiation of a number of mitigating actions the Group now expects to reduce this EBITDA impact to approximately £50m per month
- As a result, the average monthly cash outflow would be limited to approximately £15m per month, and the Group is confident that further cost actions will enable it to achieve its target of reducing the cashflow to breakeven
- The Group’s financial position remains robust, however given the ongoing uncertainty regarding timings of the easing of shutdown measures around the world, the Board has taken the prudent decision to withdraw the second interim dividend that is due for payment on 23 April 2020
Kenneth Alexander, GVC’s CEO, commented:
“As our Q1 trading numbers once again demonstrate, GVC is a business that, in normal times, delivers an outstanding performance. However, while our global and product diversification is standing us in good stead during the current uncertainty, the COVID-19 pandemic is posing an unprecedented challenge to our business and our industry. We are responding decisively, and have put in place a range of measures to keep our people safe, strengthen our financial position, limit cash outflow, preserve jobs and maintain a compelling customer offer. I am confident that we will emerge from this period in a position of strength, and we will be well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us.
“We are also sensitive to the fact that at this time of economic stress and isolation, it is vital that we ensure a safe, responsible and enjoyable gaming environment for our customers and do everything that we can to minimise the potential for harm. Accordingly, not only have we supported the Betting and Gaming Council’s 10 pledge action plan on safer gambling, but we have gone further and introduced a range of additional safeguarding measures to ensure that we are able to rigorously monitor and protect anyone who may be vulnerable at this time.
“Finally, I would like to thank our outstanding teams around the world for the manner in which they have rapidly adapted to the challenge, and for their continuing hard work and commitment to ensuring GVC’s long-term success.”
Current trading
In its 2019 full year results on 5 March 2020, GVC reported that the current year up to 23 February 2020 had started strongly. That momentum continued until the Group started to see the impact of COVID-19 on sporting events and store closures in mid-March.
The performance of the Group for the year to 31 March 2020 is set out in the table below, with key highlights as follows:
- Total Group NGR +1% (+2% cc1)
- Online NGR +16% (+19% cc1), with continued strong growth in all major territories
- UK Retail like-for-like (“LFL”)4 NGR -19%
- European Retail NGR -3% (flat cc1) supported by continued market share gains in Italy
- For the period 1 January to 15 March 2020 all divisions performed strongly, supported by favourable sports margins:
- Group NGR +9% (+11% cc1)
- Online performed strongly across both gaming and sports, with NGR +20% (+23% cc1). Since then there has been an encouraging performance in gaming in the absence of sporting events, in line with the Group’s expectations
- UK Retail like-for-like (“LFL”)4 NGR -5% despite the annualisation of the triennial review impacts
- European Retail delivered strong NGR growth at +20% (+24% cc1)
| Period 1 January to 31 March 2020 | ||||
| Total NGR | Total NGR cc1 | Sport Wagers | Sports Margin | |
| Online | ||||
| Sports | 17% | 21% | (12%) | 2.5pp |
| Gaming | 17% | 18% | ||
| Total Online | 16% | 19% | ||
| UK Retail (LFL3) | (19%) | (19%) | (8%) | 3.3pp |
| European Retail | (3%) | flat | (21%) | 3.7pp |
| Total Group | 1% | 2% | ||
For the avoidance of doubt, the guidance provided on 5 March 2020 is withdrawn.
Impact of COVID-19
On 16 and 17 March 2020 GVC provided assessments of the impact of cancellations of sporting events and store closures on Group EBITDA3 for the year to 31 December 2020. These announcements were based on the Group’s modelling which assumed that: a) football is suspended across Europe; b) major sporting events are cancelled or postponed (Aintree, Royal Ascot, Euro 2020 etc); c) horse racing in the UK and Ireland is suspended; d) all retail outlets in the UK, Republic of Ireland and mainland Europe are closed; and e) there would be a modest increase in GVC’s gaming business which accounts for 57% of Online NGR. Taken together, GVC estimated that these events would result in a reduction in EBITDA of approximately £100m3 per month before any mitigating actions. This would break down by the Group’s key reporting divisions as approximately 20% for Online, 63% for UK Retail and 17% for European Retail.
Mitigating actions
GVC’s teams around the world are working hard to reduce costs and re-prioritise activity in order to preserve free cash, whilst continuing to offer its customers great gaming experiences and to position the Group to emerge from the current restrictions in a position of strength. A number of opportunities have been identified so far which reduce costs by approximately £50m per month.
For example, in the UK GVC is eligible to receive the government grant towards employment costs as we furlough retail colleagues and retain them on full pay, as well as the business rates relief, which together the Group estimates will reduce costs by nearly £20m per month.
In Italy and Belgium GVC operates a franchising model where the store operating costs (rent, employment, utility and other costs) primarily reside with the franchisee.
Other measures taken include reductions in online sports marketing, sports content and trading costs.
Resultant estimated cash outflow
After adjusting for the impact on EBITDA, adding additional cash costs incurred (such as interest, capex, tax and other costs) and allowing for retail capex reduction, the average monthly cash outflow would be approximately £15m per month. The Group continues to work through cost mitigation opportunities and is targeting a break-even cashflow per month objective, thereby preserving cash at broadly current levels during this period of retail closures and reduced sporting events.
The following table sets out, for illustrative purposes only, the effect of our modelling and mitigating actions on EBITDA and average cashflow over a month of severe COVID-19 impacts:
| Impacts of COVID-19 and mitigations | Estimated average monthly amounts |
| Consensus EBITDA2 for FY2020 as at 31/1/20 | £65m |
| Total EBITDA impact before mitigating actions | £(100)m |
| Mitigating actions | £50m |
| Net EBITDA | £15m |
| Other cash costs incurred (including capex, interest, tax and other items) after retail capex mitigation | £(30)m |
| Net cash utilisation | £(15)m |
Financial position
GVC is in a robust financial position, with net debt/EBITDA as at 31 December 2019 of 2.69x. The Group had accessible cash of over £350m at 31 March 2020, of which over £250m is cash at hand after excluding cash held on behalf of customers, cash in shops, ringfenced PSP funds and other items which may not be immediately available.
In addition, GVC has a £550m Revolving Credit Facility (RCF) which is currently undrawn. This facility has a financial covenant which is only tested if the facility is drawn by more than 35% at a quarter-end. The covenant measure is calculated on a trailing 12-month pre IFRS 16 basis with a net debt/EBITDA limit of 4X. Unrealised synergies can be added to EBITDA.
GVC currently has two bonds in issue, totalling £500m. One of £100m is due 2022 and one of £400m is due 2023. In addition, the Group has Term Loans of €1,125m and $786m, both due 2024.
Dividend
Due to the ongoing uncertainty as to how long restrictions as a result of COVID-19 will be in place around the world, the Board has taken the prudent decision to withdraw the payment of the second interim dividend of 17.6p per share announced on 5 March 2020. This was due to be paid on 23 April 2020 with a total cash cost of £103m. However, the Board recognises the importance of dividends as a part of shareholder returns and will consider dividends with future results announcements.
2019 Annual Report and Annual General Meeting (“AGM”) and Directors Remuneration
The Group’s annual report for 2019 is today published on the Group’s website at gvc-plc.com. Copies will be posted to those shareholders requesting a hard copy as soon as it is practical to do so. The 2020 AGM was scheduled to be held on 30 April and in normal circumstances an AGM Notice would be circulated with the annual report. Owing to the public health guidance on social distancing, the Board has decided to postpone the AGM. The Group will issue an AGM Notice once the Board is confident it can safely hold a meeting on a specified date.
The 2019 Annual report sets out details of the directors’ 2019 incentive outcomes and 2020 implementation. However, the payment of directors’ 2019 bonuses and the grant of the 2020 LTIP awards have been postponed. The Remuneration committee will consider the impact of COVID-19 on GVC’s performance and remuneration in due course and review the implementation of the policy for 2020 as appropriate.
Notes
- Growth on a constant currency basis is calculated by translating both 2020 and 2019 performance at the 2020 exchange rates.
- As at 31 January 2020, company compiled EBITDA consensus for the financial year to 31 December 2020 was £776.3m on a pre-IFRS 16 basis.
- The £100m approximate impact on monthly EBITDA is derived from the two announcements of 16 & 17 March as follows: The EBITDA impact over 3.5 months of sports and major events cancelations and European Retail closures of approximately £130m – £150m equating to approximately £37m – £43m per month; the EBITDA impact of UK Retail store closures of approximately £45m – £50m per month; and the EBITDA impact of the cancellation of horse racing in the UK & Ireland of approximately £20m- £25m per month. Taking each of these at the mid-point and allowing for overlap derives an approximate monthly impact on EBITDA of £100m.
- UK Retail numbers are quoted on a LFL basis. During the period, there were an average of 3,131 shops in the estate, compared to an average of 3,464 in the same period last year.
About GVC Holdings PLC:
GVC Holdings PLC is one of the world’s largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The Group owns proprietary technology across all of its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. The Group has also entered into a joint-venture with MGM Resorts to capitalise on the sports-betting and gaming opportunity in the US. The Group, incorporated in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 20 countries, across five continents.
For more information see the Group’s website: www.gvc-plc.com
Source: Latest News on European Gaming Media Network
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: GVC Holdings: Q1 Trading and COVID-19 Planning Update
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LambdaTest Unveils the World’s First Platform to Test AI Agents: Introducing Agent-to-Agent Testing
AI-native Multi-Agent System Delivers Smarter, Faster, and More Comprehensive Software Testing
LambdaTest, the leading AI-native testing platform, has launched the private beta release of its Agent-to-Agent Testing, the world’s first platform designed to validate and assess AI agents. With the rise of AI agents in developer workflows, the platform is set to revolutionize the way organizations test and validate their AI agents across conversation flows, intent recognition, tone consistency, complex reasoning, and beyond.
As enterprises increasingly rely on AI agents to power customer experiences, a critical challenge has emerged: no standard way of testing various AI Agents. These agents interact with users and systems in ways that are dynamic and unpredictable, making it hard to ensure their reliability and performance. Traditional testing methods fall short when the system under test is inherently unpredictable.
Organizations need a new, smarter way to test AI applications at scale, which is where Agent-to-Agent Testing comes in. LambdaTest’s Agent-to-Agent Testing platform is the first of its kind. The platform uses a suite of specialized AI testing agents to rigorously validate chat and voice AI agents..
Teams can upload existing requirement documents in various formats, such as text, images, audio, and video, and the system automatically handles multi-modal analysis to generate relevant test scenarios, simulating real-world challenges that could break the AI agent under test. Each scenario includes precise validation criteria and expected responses, evaluated within HyperExecute, LambdaTest’s next-gen test orchestration cloud, delivering up to 70% faster test execution than standard automation grids.
The platform highlights different key metrics like Bias, Completeness, Hallucinations, etc., to help teams analyse the quality of their AI agent
By integrating agentic AI and GenAI technologies, it generates real-world scenarios such as tone of personality agents, data privacy considerations, and executes test cases with unparalleled accuracy. This ensures much broader and more diverse test coverage compared to traditional testing tools. Unlike single-agent systems, LambdaTest’s Agent-to-Agent Testing leverages multiple large language models (LLMs), which the agents use for reasoning and test generation. This multi-agent approach results in a much more comprehensive and detailed test suite, enabling deeper, more robust testing of AI applications.
“Every AI agent you deploy is unique, and that’s both its greatest strength and its biggest risk! As AI applications become more complex, traditional testing approaches simply can’t keep up with the dynamic nature of AI agents,” said Asad Khan, CEO and Co-Founder at LambdaTest. ” Our Agent-to-Agent Testing platform thinks like a real user, generating smart, context-aware test scenarios that mimic real-world situations your AI might struggle with. Each test comes with clear validation checkpoints and the responses we’d expect to see.”
Enterprises using Agent-to-Agent Testing will experience faster test creation, evaluation of Agents, reduced testing cycles, and significant improvements in test coverage. The multi-agent system can generate a 5 to 10-fold increase in test coverage, providing a more comprehensive view of AI agent performance.
Furthermore, the integration with HyperExecute means teams receive rapid feedback, reducing the time between testing and iteration. By automating much of the testing process, companies also reduce their reliance on manual QA efforts, resulting in significant cost savings. With 15 purpose-built AI testing agents ranging from security researchers to compliance validators, LambdaTest Agent-to-Agent testing ensures every deployment is as robust, safe, and reliable as possible. Helping teams ship their AI agents with confidence.
Learn more about Agent-to-Agent Testing by LambdaTest here: lambdatest.com/agent-to-agent-testing
To watch the live unveiling of the platform, join the Testμ Conference 2025 on 20th August, 2025: lambdatest.com/testmuconf-2025
The post LambdaTest Unveils the World’s First Platform to Test AI Agents: Introducing Agent-to-Agent Testing appeared first on European Gaming Industry News.
The Arizona Department of Gaming (“the Department”) is proud to announce the launch of its first-ever statewide Public Education Campaign focused on protecting consumers, promoting public awareness, and reducing the harms associated with unregulated gambling. This is a significant milestone in the Department’s ongoing efforts to protect consumers and ensure a safe and responsible gaming environment.
Arizona offers a variety of legal, regulated gaming options throughout the state, including tribal casinos, event wagering, fantasy sports, and parimutuel wagering. For 30 years, ADG has safeguarded the integrity of Arizona’s gaming industry through rigorous oversight, licensing, and enforcement in accordance with the Tribal-State Gaming Compacts. This new campaign expands on that mission by educating Arizonans on how to avoid illegal gambling and access support services when needed.
The campaign is designed to inform and empower the public by emphasizing the risks of engaging with unlicensed operators and providing them with tools to identify legal, regulated options. It aims to reduce consumer vulnerability, prevent exploitation, and help individuals make informed decisions if they choose to participate in gaming activities.
The campaign kicks off with a series of Public Service Announcements (PSAs), developed in collaboration with the Arizona Media Association, which will be aired across TV, radio, print, and digital platforms. Available in both English and Spanish, the PSAs will:
- Educate the public on how to identify legal, regulated gaming operators in Arizona
- Emphasize consumer protection and the safeguards provided by regulated gaming environments
- Highlight the role regulated gaming plays in supporting Arizona communities and essential services
- Promote the 1-800-NEXT STEP helpline, which connects individuals to confidential, 24/7 support for problem gambling
To complement the PSAs, ADG has launched the Check Your Bet webpage, which serves as a centralized resource to verify regulated gaming and access consumer protection tools. The webpage includes:
- A searchable list and interactive map of authorized Tribal Casinos in Arizona
- A searchable list and interactive map of licensed Event Wagering and Fantasy Sports Operators and their retail locations
- Information on Advanced Deposit Wagering Providers (ADWPs), Off-Track Betting (OTB) locations, and permitted horse racing tracks in Arizona
- How to access the Division of Problem Gambling’s Helpline, a confidential Problem Gambling Self-Screening Quiz, and additional supportive resources
- How to request Self-Exclusion, a voluntary program to prohibit oneself from Tribal Casinos and Event Wagering and Fantasy Sports Contests
- Guidance on submitting tips about suspected illegal gambling to the Department and filing consumer complaints with the Arizona Attorney General’s Office
For more information, visit the Check Your Bet webpage at gaming.az.gov/checkyourbet.
“We are proud to celebrate 30 years of providing world-class gaming regulation and consumer protection,” said Jackie Johnson, Director of the Arizona Department of Gaming. “This campaign is about empowering Arizonans who choose to participate in gaming with the knowledge to make informed, responsible decisions. As illegal and unregulated options on the market increase, the Check Your Bet webpage serves as a key resource for the public to verify licensed operators and access support. By directing viewers from our PSAs to this tool, we’re helping ensure people not only play safely, but also know where to turn if they or a loved one are struggling with problem gambling.”
Since its founding in 1995, the Department has worked tirelessly to ensure that Arizona’s gaming industry operates with transparency, integrity, and responsibility. The campaign will run through the end of March 2026 and reflects ADG’s commitment to a safe, transparent, and well-regulated gaming landscape in Arizona.
The post ADG Launches First-Ever Statewide Campaign to Empower and Protect Consumers appeared first on European Gaming Industry News.
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The Arizona Department of Gaming (“ADG”) has issued cease-and-desist orders to four additional unlicensed and unregulated gambling operators targeting Arizona residents. The identified operators are reportedly offering access to illegal online gambling platforms, including “sweepstakes” casino-style models and event wagering sportsbook betting options. Unlicensed operators operating outside the law and without regulatory safeguards pose serious risks to consumer protection and financial security across the state, undermining the integrity of Arizona’s regulated gaming industry.
This latest action underscores the Department’s commitment to protecting the public and upholding Arizona’s gaming laws. ADG continues to actively monitor, investigate, and take enforcement action against entities attempting to exploit Arizona residents through unauthorized gambling activities, including possible enforcement actions in partnership with the Arizona Attorney General’s Office.
The following entities are not licensed by the State of Arizona. Therefore, cease-and-desist orders have been issued to:
- Event Wagering Sportsbook:
- Fliff Online Gambling
- Thrillzz Mobile Gambling
- Sweepstakes:
- BettySweeps Casino
- Pulsz Casino
The active operations of these companies and online websites in Arizona are alleged to be felony criminal enterprises, and each operator has been directed to desist from any future illegal gambling operations or activities of any type in Arizona. Due to the unregulated and illegal online gaming offerings on these sites, operators are claimed to be in violation of Arizona gaming laws, including
- Promotion of Gambling (Felony) — A.R.S. § 13-3303.
- Illegal Control of an Enterprise (Felony) — A.R.S. § 13-2312.
- Money Laundering (Felony) — A.R.S. § 13-2317.
Each aforementioned operator has been directed to immediately cease all online (or other) gambling operations and activities in Arizona and take the necessary steps to immediately prevent and exclude Arizona residents and visitors from gambling on their websites.
Consumer Protection Advisory:
As illegal online gaming activity continues to rise, the ADG urges all residents and visitors to be cautious when participating in gaming, whether online or in person. Regulated gaming offers important consumer protections, helping ensure fair play, data security, accountability, and a safer overall experience.
Many online platforms currently accessible in Arizona are neither licensed nor regulated, exposing users to significant risks, including fraud, identity theft, and financial loss. Because these operations fall outside the state’s regulatory authority, ADG cannot assist with complaints or disputes involving unregulated or illegal gaming activities, often leaving victims with no recourse for recovering lost funds. It is important to remember: just because you can download the app, access the website, and play the games does not mean the platform is legal or safe.
Individuals are encouraged to verify the legitimacy of any gaming platform before placing bets or engaging in gameplay. To protect yourself, always use legally authorized and state-regulated operators. A complete list of authorized casinos, event wagering operators, fantasy sports operators, and off-track betting and advanced deposit wagering providers for horse racing is available on ADG’s official website: gaming.az.gov/checkyourbet.
How to Report Suspicious Gaming Activity, Fraud, or Identity Theft:
- If you encounter what appears to be an illegal gaming website, app, or an operation impersonating an authorized Arizona casino or licensed operator, take the following steps:
- Document the website URL, app, business name, and any promotional materials associated with the platform or operator.
- Report it to ADG at [email protected] and the Arizona Attorney General’s Office Consumer Information and Complaints Unit at (602) 542-5763 or by visiting azag.gov/consumer.
- Cease activity on the platform and monitor financial accounts for unauthorized transactions.
- If you suspect identity theft, report it to the Federal Trade Commission (“FTC”): for help in English, go to IdentityTheft.gov, and for help in Spanish, go to RobodeIdentidad.gov.
ADG takes complaints about all illegal gambling seriously. To report any form of suspected illegal gambling, visit gaming.az.gov/about/contact-us, call ADG at (602) 255-3886, or email [email protected]. Reports can be made anonymously.
The post Arizona Department of Gaming Continues Enforcement Against Unlicensed and Unregulated Gaming Operators appeared first on European Gaming Industry News.
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