Betting titan Kenny Alexander departs GVC to usher in new era

Kenny Alexander, who transformed GVC Holdings to become one of the giants of the gambling industry, is stepping down as chief executive after 13 years with the parent company of Coral and Ladbrokes, it was revealed on Thursday morning.

The announcement surprised the markets with GVC's share price falling by nearly six per cent on the back of the news at one point before making a partial recovery.

Alexander, 51, is to be succeeded by Shay Segev, GVC's chief operating officer. The change, which GVC said followed a "long-term succession process", will take place at the close of business on Friday.

Since joining as chief executive in 2007, Alexander has built GVC from a small AIM-listed company to being listed on the FTSE 100 following a number of acquisitions, including that of Ladbrokes Coral in 2018.

His time has not been without controversy, with a number of disputes over corporate governance, while GVC's rise to prominence has also meant the company has been among those to bear the brunt of the intense scrutiny and criticism the industry has faced over problem gambling.

Alexander said: "I have given 13 years to GVC and I now want to give some time to my family. I have enjoyed every minute of helping to grow GVC into the business that it is today, and am proud of all that has been achieved.

"We have the best people, brands and technology in our sector, and our joint venture in the US with MGM Resorts positions us very strongly for growth in that hugely exciting market.

"I have spent the last four months working from home and reflecting on my future plans, and this feels like the right moment."

GVC chairman Barry Gibson thanked Alexander for his contribution to the company.

He said: "Kenny has built a remarkable global business, and has achieved more in the past 13 years than most people manage in a lifetime.

"We will miss him, but we also understand his wishes to hand over the reins after such a long and successful stint at the top of the company."

Betting and Gaming Council chief executive Michael Dugher paid tribute to Alexander and said he looked forward to working with Segev, especially on the expected review of the Gambling Act.

"Kenny helped create the Betting and Gaming Council because I know he understood that the whole industry needed to drive changes in the future and work for ever higher standards," Dugher added.

Shay Segev: succeeding Alexander as GVC chief executive

Segev, 44, has been COO of GVC since 2016, having previously been chief strategy officer of Gala Coral and chief operating officer of gambling technology company Playtech.

He said he was "hugely honoured" to have been given the opportunity.

"Kenny has been a fantastic colleague and leader during the four years I have worked with him," Segev said. "Thanks to his stewardship I am succeeding him at a time when the business is in robust financial health with an exceptional team and exciting opportunities ahead of it, especially in the US.

"Our strategy will continue to be focused on our industry-leading technology, brands, products, marketing capabilities and people, as well as being absolutely committed to making gambling as safe and enjoyable as possible for our customers around the world."

GVC's betting shop estate has been hit by the Covid-19 crisisCredit: Lewis Porteous

The news came as GVC issued a trading update for the first half of the year, with the company producing what Alexander described as a "very strong performance" despite the impact of the Covid-19 crisis.

Group net gaming revenue (NGR) was down 11 per cent in the first half of the year, while online NGR rose by 19 per cent.

GVC said total group NGR had fallen 22 per cent during the second quarter but reported strong growth in online with NGR rising by 22 per cent.

The company's UK betting shop estate had been heavily impacted by closures during the second quarter with NGR down 86 per cent, although GVC said the response from customers had been "encouraging" since shops started to reopen in June.

First-half earnings were expected to be in the range of £340-£350 million.

GVC's share price ended the day down 3.68 per cent at 879.8p.

Goodbody gaming and leisure analyst Gavin Kelleher said: "While the operational performance is excellent the news that CEO Kenny Alexander is to immediately retire from the business will come as a surprise to many and will be seen as a negative.

"Given he has been so instrumental to GVC's development, this is understandable. However, we believe Shay Segev has been key to GVC's success in the last four years and is an excellent replacement that is high calibre and ensures continuity."

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