Ladbrokes owner GVC’s board takes 20 per cent voluntary pay cut
Ladbrokes owner GVC has announced its board will take a voluntary pay cut of 20 per cent amid the coronavirus crisis.
Last month the bookmaker said the board’s remuneration committee would consider the impact of coronavirus on GVC’s performance and review the remuneration policy.
Today GVC announced the board of directors and members of the group’s executive committee will take a voluntary 20 per cent reduction in basic salary and fees. The pay cut, which will be in place for three months, is effective immediately.
They will also forgo their bonuses for 2020.
Social distancing measures and the decision to scrap football matches and major sporting events have weighed heavily on the betting industry.
However, GVC said measures to conserve cash would help halve the blow to earnings before interest, tax, depreciation and amortisation (Ebitda).
Earlier this month, GVC cancelled its interim dividend after the pandemic “significantly reduced” revenues from March.
William Hill also suspended its dividend after the widespread sports cancellations were announced. In March it warned that the postponement of key sporting events would reduce its earnings by up to £110m.
Last month Paddy Power’s owner Flutter Entertainment announced its revenue had not been hit as hard as expected by lockdown measures. Following the cancellation of sports fixtures, revenues were more resilient, in part due to the continuation of horse racing in the US and Australia.
Premier League executives and representatives from the clubs are meeting today to discuss plans to restart matches in the week commencing 8 June.
Shares in GVC dropped 1.5 per cent on the news.