The Chief Executive Officer of GVC Holdings, Kenneth Alexander, is set to part ways with the company that he managed to expand into a global gambling company over the 13 years he headed the operator.
Mr Alexander was appointed at the CEO role in 2007 when GVC Holdings was still a small gambling tech operator. As of July 17th, the CEO is to hand over the position to his now-Chief Operating Officer (COO). Although the announcement, which was made earlier today, came as a surprise, it turned out that the promotion of Shay Segev at the CEO position was part of the succession planning of the gambling group. The decision was prompted by the homeworking schedule of Mr Alexander because of the coronavirus pandemic.
The 44-year-old Mr Segev joined the gambling group in 2016, after occupying the position of Chief Strategy Officer at Gala Coral. At the time he has spent in GVC, he has been responsible for large parts of the gambling operator’s business, such as merger and acquisition activity, retail business, technology platform and US joint venture.
The change in the leadership role of the company comes at a time when gambling operators are desperately trying to attract more customers by expanding their international presence in the US gambling market that has recently grown with the legalisation of sports betting. Apart from that, the directorial shift has coincided with the lengthy coronavirus restrictions faced by gambling businesses, as the Government forced them to close their retail operations to minimise the risks of spreading the infection.
Kenneth Alexander Helped GVC Holdings’ Growth during His Tenure
GVC Holdings has been one of the gambling companies that faced damage from the coronavirus lockdown, which has lasted several months. Earlier today, the gambling operator revealed that its net gaming revenues fell by 22% over the second fiscal quarter.
Still, the online gambling revenue registered a significant increase in the period. The negative effect of the retail gambling venues closure was offset by more than 20% growth in the company’s online revenue. GVC Holdings shared expectations that its EBITDA (earnings before interest, tax, depreciation and amortisation) over the first half of the year are to be higher than previously expected, in the range between £340 million to £350 million.
During the tenure of Mr Alexander, he oversaw acquisitions which total worth exceeded £5 billion. In the 13 years spent by Mr Alexander, the gambling group acquired its rival company Bwin.party and one of the largest bookmakers in the UK – Ladbrokes Coral. The merger and acquisition deals turned GVC Holdings into one of the biggest gambling operators not only in the UK but also on a global scale. Following the deals, the overall net debt of the company is estimated at £1.8 billion.
Also, under the lead of Mr Alexander, the gambling group agreed on forming a joint venture with MGM Resorts, the largest casino operator in the world. Thanks to the deal, GVC Holdings managed to set foot in the US market, which has been considered a lucrative expansion target for many British gambling companies as a way to minimise the negative impact of stricter regulation in their domestic market.
- Author
Olivia Cole
