17th Mar 2020 14:50
(Alliance News) - GVC Holdings PLC said on Tuesday the suspension of horse racing in the UK will hit earnings by a further GBP20 million to GBP25 million a month.
Horse racing in the UK is to be suspended from Wednesday due to the coronavirus outbreak, the British Horseracing Authority announced earlier Tuesday.
"Our first duty is to the health of the public, our customers and to racing industry participants and staff so we have decided to suspend racing following the government's latest advice," BHA Chief Executive Nick Rust said in a statement.
The decision comes a day after the BHA had said racing would continue behind closed doors, though the Grand National was cancelled.
The bookmaker said this decision will hurt earnings before interest, tax, depreciation and amortisation by GBP20 million to GBP25 million a month before any mitigating action in 2020.
GVC on Monday had said the cancellation of sporting events due to the outbreak would hit 2020 Ebitda by between GBP130 million to GBP150 million, figures which do not include Tuesday's guidance on the UK horse racing impact.
GVC, which owns Ladbrokes, reaffirmed Monday's statement that it has a strong balance sheet. It has an undrawn revolving credit facility worth GBP550 million.
GVC shares fell 14% on Tuesday to a price of 318.60 pence each.
Rival William Hill PLC also on Monday warned the cancellation of sporting events would significantly hurt trading.
By George Collard; [email protected]
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