(Alliance News) - Shares in Ladbrokes Coral owner GVC Holdings PLC fell early on Thursday, after it reported a double-digit first half revenue decline and the practically immediate departure of its chief executive officer.
GVC shares were 4.7% lower at 870.60 pence each in London on Thursday morning, the worst FTSE 100 performer.
Kenneth Alexander will leave his post on Friday after 13 years at the helm. He will be replaced by Chief Operating Officer Shay Segev.
In the six months to June 30, the bookmaker's net gaming revenue dropped 11%, or 10% at constant currency. There was 19% growth in online, though this was more than offset by like-for-like revenue falls of 50% and 48% at its UK and European retail arms, respectively.
In the second-quarter alone, net gaming revenue fell 22%. UK retail fell 86% and European retail by 90%, but online grew by 22%.
The first half was a period mired in lockdowns, which led to sporting events across the globe being postponed and cancelled.
GVC's bricks-and-mortar stores in the UK were forced to shutter back in March, but were allowed to reopen in England on June 15 as the lockdown was eased. This coincided with the sporting calendar picking up too. The British horse racing season is now back in full swing, likewise England's Premier League football competition.
"Customers have welcomed the return of sports, with activity close to pre-Covid-19 levels," GVC said on Thursday.
GVC expects first-half earnings before interest, tax, depreciation and amortisation between GBP340 million and GBP350 million. At best, this would represent a 4.6% fall from financial 2019's first half underlying Ebitda of GBP366.8 million.
Outgoing CEO Alexander added: "Given the extraordinary circumstances in which the group is currently operating, delivering double-digit online net gaming revenue growth in all of our major territories is a very strong performance."
Alexander joined GVC back in 2007, overseeing its growth from a "small AIM-listed company to a FTSE 100 global sports betting and gaming business".
"I have spent the last four months working from home and reflecting on my future plans, and this feels like the right moment. Whilst it is never easy to hand the baton on, it has been very clear for a number of years now that Shay is the right person to succeed me," Alexander said.
Segev has been COO since March 2016.
"Kenneth has offered to remain available to Shay and the team as required," GVC added.
By Eric Cunha; ericcunha@alliancenews.com
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