GVC to sell Turkish-facing operations

The agreement, which relates to GVC’s Headlong Limited business and various other companies, is subject to gaming regulatory and lender approval. However, the company expects completion to take place by the end of year.

In the year ended 31 December 2016, Headlong and associated businesses generated approximately €35m of Clean EBITDA; management expect a similar Group Clean EBITDA contribution from the respective operations for the financial year ending 31 December 2017. Headlong and associated businesses had gross assets of €21m as at 31 December 2016.

With this decision, GVC hopes to further increase its focus on regulated markets. Following the sale, the group’s NGR will increase to approximately 75%. The disposal proceeds will be used for general corporate purposes. The company said the sale will not impact its stated progressive dividend policy.

CEO Kenneth Alexander said, “As the Group evolves, our focus is increasingly on regulated markets and markets where we believe there is a realistic path to regulation. Today’s disposal is consistent with this strategy and enhances GVC’s position as a leading operator in a rapidly developing industry.”