GVC predicts new enforced closures could cost the company GBP 37 M

GVC Holdings, the global sports betting and gaming group, provided Monday an update regarding the impact of enforced store closures across UK and European retail due to Covid-19.

Further restrictions have now been imposed in England, in addition to those already in place across the company's wider UK Retail and European Retail operations. In England, all leisure venues, pubs, restaurants, and hospitality outlets have to close for a month from this Thursday, November 5, due to the new restrictions, Proactive Investors reports.

All stores in Wales are currently closed too and are expected to re-open on 9 November, while in the Republic of Ireland, all shops are expected to be closed until 2 December.

In Italy, all shops except corner outlets are closed until November 24 and in Belgium until December 13. Stores in Scotland and Northern Ireland currently remain open.

According to the company, the cost of these closures on underlying profits in UK retail operations would be £27mln (USD 35 M) and £10mln (USD 13 M) in Europe.

Prime Minister Boris Johnson this weekend announced a one-month lockdown for England. This could be extended as Britain struggles to contain a second wave of the pandemic - the region has the biggest official death toll in Europe.

If all of the operations had to close for a month the cost in lost profits would rise to £43mln, the company added.

According to the company, these estimates include the benefit of government support where available and other retail cost mitigation.

"The well-being, safety, and security of our colleagues and customers is of paramount importance to us," GVC officials said in the update. "We are following government advice in each area of our operations and are enacting contingency plans to minimize the impact on the business."

Group net revenue climbed 12% in the third quarter to end-September, 2020.