Ladbrokes deal finalized by GVC
UK gaming company GVC Holdings has now finished acquiring Ladbrokes Coral. All the brands are running on their in-house technology system, which includes ones like Ladbrokes, Coral, Gala Bingo, Gala Casino, and Gala Spins. This is one of the biggest deals in the gambling industry.
Dealing with COVID-19
Shay Segev, the Chief Operating Officer at GVC, is happy that they made it through a major part of the Ladbrokes Coral integration process. They moved over 12.5 million customers to their technology platform, making their customer base about 25 million strong. Even with the huge project and the pandemic, they managed to end it on time and within budget. The UK gaming companies told media:
"This is a great demonstration of our technology's resilience and our employees' skills. Especially considering everyone had to work from home."
Their plan is to continue with more parts of the process and combine the back offices. They expect to save around €145.7 million by the end of 2021. This will help with more product innovation and more mergers or acquisitions. In a press statement, they revealed:
"Our track record of integrating large operations with minimal disruption shows that the future offers great potential for us."
A Huge Union
GVC purchasing Ladbrokes Coral is one of the biggest mergers in the history of gaming. It's only second to Caesars-Eldorado and Flutter Entertainment-The Stars Group. They confirmed the deal in 2018, and the cost was roughly €4.5 billion. Kenneth Alexander, who leads GVC, calls it the creation of a huge listed gaming corporation.
The market is changing fast, so combining famous brands, solid technologies, and strong market positions is important. Alexander said that Ladbrokes offered an exciting prospect.
Positive Trading Results for 2020
GVC surprised people last month by reporting revenue growth in the first quarter of 2020, even after predicting a big loss. But due to the pandemic, they canceled a planned dividend payment. In their trading update, GVC said their total NGR (Net Gaming Revenue) for the first three months was only 1% higher than in the same period the previous year. More than 16% of their revenue came from online gambling. However, their retail business in the UK decreased by 19%, and overall, their European revenue went down by 3%. The suspended major sports events lowered their EBITDA by €113.8 million. Though they kept mum about more details, GVC recently said they took some measures to reduce the effects of the pandemic, like using a UK government program to cover employment costs. They're still planning more changes.
**Image Source: https://unsplash.com/photos/LJNqXJc-nhI
Britain's gaming conglomerate GVC Holdings recently announced the successful acquisition of Ladbrokes Coral. The merger, validated since 2018, has seen the incorporation of several big brands on GVC's in-house technology platform in one of the UK's largest gaming deals. The championed brands now consist of Ladbrokes, Coral, Gala Bingo, Gala Casino, and Gala Spins.
Overcoming Obstacles and Crises
Shay Segev, the Chief Operating Officer at GVC, communicated his elation at successfully merging all of Ladbrokes Coral's UK platforms onto GVC's patented technology platform. During the final stage of the transaction, along with the migration of over 12.5 million customers to the new platform, the number of players grew exponentially to around 25 million. Segev stated that, despite the merger's complexity and the ongoing COVID-19 pandemic, the project was completed without any hindrance — on time and on budget.
The British media were informed:
"This incredible achievement is a testament to our technology's sturdiness and team's capabilities. It's even more impressive that they managed this feat during a period of remote work."
The company is also planning further synergies and back-office integrations in the following months. Ideally, they want to achieve a €145.7 million worth of yearly cost savings by 2021. This will bolster technical resources and contribute towards product innovation. Their statement acknowledged:
"The GVC integration model has repeatedly demonstrated its effectiveness in merging large-scale businesses with minimal impact on operations. We have faith in our ability to capitalize on the prospective opportunities we're certain to encounter in the near future while growing our existing ventures."
This merger, along with Caesars-Eldorado and Flutter Entertainment-The Stars Group, is considered one of the biggest in gaming's history. The transaction's value was worth around €4.5 billion. GVC CEO Kenneth Alexander commented:
"The creation of this worldwide listed gaming giant is fantastic."
The merger didn't happen by accident. Alexander underlined the importance of a compelling mix of established brands, highly-functional technology, and superior market positions in this quickly-evolving industry driven by digitalization. He also claimed that Ladbrokes had an attractive appeal, which made it an ideal candidate.
A Promising Paradigm
Despite facing a €113.8 million EBITDA reduction due to the pandemic's impact on major sporting events, GVC reported promising quarterly results for the first three months of 2020. Total net gaming revenue (NGR) only slightly increased by 1% compared to the same period in 2019. However, the online gaming segment saw a 16% revenue boost. But as restrictions on retail shops and a slump in European sales prevailed, the UK retail sector dropped by 19% in the first quarter. Regrettably, GVC opted out of announcing more details on their Q1 performance. They are though known to have taken measures to offset losses, such as implementing a UK government relief program for employment costs. The end game remains uncertain.
Image Source https://unsplash.com/photos/LJNqXJc-nhI
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Source: www.onlinecasinosdeutschland.com
