1st May 2020 08:46
(Alliance News) - Sports betting and gaming group GVC Holdings PLC on Friday said its board of directors and senior executives will take a cut in pay and fees and forego their bonuses for 2020 in light of the ongoing disruption caused by the Covid-19 pandemic.
The board of directors and members of its executive committee have decided to take a voluntary 20% reduction in basic salary and fees for three months from Friday.
In April, Ladbrokes owner GVC had estimated a GBP50 million hit to monthly earnings, after the virus outbreak led to store closures and halting of sporting events.
The monthly hit to the company's earnings before interest, tax, depreciation and amortisation had been initially estimated at GBP100 million; however, the estimate was lowered to GBP50 million following cost savings measures implemented by the company.
The company also in April had pulled its second interim dividend payment of 17.6 pence per share, saving GBP103 million.
Shares in GVC were 2.0% lower at 739.20p each in London on Friday morning.
By Tapan Panchal; [email protected]
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