GVC postpones £2.5m employee performance bonus
London-listed operator cites “extraordinary, unprecedented and challenging” economic and health crisis in email to staff
GVC Holdings has postponed paying its employees a £2.5m 2019 performance bonus as the firm continues to battle against the financial impact of coronavirus.
The FTSE-listed operator has delayed the bonus payment because it needs to focus resources on securing jobs and keeping the business viable, according to an internal email seen by EGR Intel.
GVC stressed the £2.5m bonus – a reward after the operator’s underlying 2019 EBITDA came in £50m ahead of expectations – has not been cancelled and will be paid at a later date.
“It is important to emphasise the bonus will be paid, but at this point protecting jobs and keeping the business viable is of paramount importance,” read the email.
The note continued: “We don’t know exactly when we’ll be able to pay, but this is definitely a postponement rather than a cancellation, and we have 100% confidence we will pay once we’re through the worst.”
The email described the “extraordinary, unprecedented and challenging” economic and health crisis faced by the operator and the wider sector as a result of the Covid-19 pandemic.
GVC last week flagged an estimated £150m EBITDA hit for 2020 as coronavirus continued to wreak havoc with the sporting calendar.
The operator yesterday announced the suspension of all British horseracing until April at the earliest was likely to dent EBITDA by a further £25m per month.
GVC said UK retail punters were still betting on greyhounds, international racing, virtual sports and gaming machines, although all shops in Ireland have been closed for a period of two weeks.