* CEO to quit after 13 years
* Chief operating officer to take over
* Sees H1 core earnings between 340-350 mln pounds
* Shares down 6%
(Adds shares, analyst comment, details on outgoing CEO,
results)
By Tanishaa Nadkar
July 16 (Reuters) - Ladbrokes owner GVC announced on
Thursday the departure of Chief Executive Officer Kenny
Alexander, who transformed the company into one of the world's
biggest gambling businesses during 13 years at the helm.
Shares in the company fell around 6% following the news
that 51-year old Alexander will be replaced by Shay Segev. Segev
has been the chief operating officer for four years.
The Scottish-born chartered accountant said he was quitting
to spend more time with his family and that Segev had been in
line to take over for some time.
"The share price reaction to news of a CEO departing says a
lot about how the market viewed someone. As such, it seems like
investors don't want Kenny Alexander to step down," AJ Bell
investment director Russ Mould said.
Alexander transformed GVC from a tiny small-cap into a 3.4
billion-pound blue chip company, employing some 25,000 staff.
He orchestrated GVC's 4 billion pound ($5.02 billion)
takeover of bookmaker Ladbrokes Coral and its tie-up with casino
operator MGM Resorts, pushing the company into the
lucrative U.S. sports betting market.
GVC's shares have risen nearly nine-fold during his tenure,
which has been marked by increased scrutiny from British
regulators and strict restrictions on gambling.
The novel coronavirus has been the latest hit to bookmakers
as the lockdown shut betting shops and cancelled sports events
that contributed to nearly half of GVC's net gaming revenue last
year.
Isle of Man-based GVC said the response from customers has
been encouraging after its shops reopened last month and online
sports activity is also near pre-coronavirus levels.
It said it expects first-half core earnings between 340
million pounds and 350 million pounds, which is above analyst
Berenberg's expectations.
Alexander said he made his decision over the last four
months. "I have given 13 years to GVC and I now want to give
some time to my family," he said.
($1 = 0.7964 pounds)
(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Shailesh
Kuber and Barbara Lewis)
