British gambling giant GVC Holdings recently released its first-quarter trading update, highlight a £50 million loss per month owing to shutdowns because of the COVID-19 pandemic. The company’s stock still surged on Monday.

Stock price gains

Though the news is disappointing for the company, its stock rose by 18.5% on Monday and reached 573.2p by the afternoon. The company previously said that its monthly earnings before interest, tax, depreciation, and amortization (EBITDA) will go down by £100 million. The figure was decided without taking mitigation into account. Now, it suggests that the losses will be half its previously suggested amount.

The Ladbrokes Coral owner said that the average monthly cash outflow of the company will be around £15 million. It is also working on further mitigation to ensure that it could break-even its monthly cash flow. The company has also decided to stop its second interim dividend which was to be paid on April 23^rd.

Stable performance in the first quarter

GVC Holdings said that the company has had a relatively stable performance in the first quarter. It has intimated its landlords that rental payments will be withheld until normal trading conditions are back. These rental payments are for the GVC betting shops located across the country. All retail outlets of the company have been shut down as part of a nationwide exercise to stop the spread of the coronavirus infection.

GVC chief executive Kenny Alexander said that its first-quarter figures highlight that the company can deliver great performance under normal operating circumstances. He added that COVID-19 has brought an unprecedented challenge their way. The company is trying to respond in a decisive way and is working hard to keep people safe. Meanwhile, it is also looking for ways to help its financial position, limit cash outflows and preserve jobs in the company.

The company’s reports suggest that its net gaming revenue rose by 1% during the quarter while the online net online gaming revenue increased by 19%.