GVC (LON:GVC) shares rose on Monday after it provided an optimistic update concerning the outbreak of COVID-19.
Shares in the British sports betting company were up by 19% during trading on Monday.
The owner of Ladbrokes had previously warned that COVID-19 would impact its EBITDA by a reduction of roughly £100 million each month.
However, the company provided investors with hope on Monday, announcing that this damage has been reduced.
“Following the initiation of a number of mitigating actions the Group now expects to reduce this EBITDA impact to approximately £50m per month,” GVC said in a statement.
Many fear the economic impacts of the COVID-19 outbreak, as shops have been made to close in order to adhere to government guidelines.
“While our global and product diversification is standing us in good stead during the current uncertainty, the COVID-19 pandemic is posing an unprecedented challenge to our business and our industry,” Kenneth Alexander, GVC’s CEO, said in a statement.
“We are responding decisively, and have put in place a range of measures to keep our people safe, strengthen our financial position, limit cash outflow, preserve jobs and maintain a compelling customer offer,” the CEO continued.
“I am confident that we will emerge from this period in a position of strength, and we will be well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us.”
The CEO said: “We are also sensitive to the fact that at this time of economic stress and isolation, it is vital that we ensure a safe, responsible and enjoyable gaming environment for our customers and do everything that we can to minimise the potential for harm.”
Shares in GVC Holdings plc (LON:GVC) were up on Monday, trading at +18.88% as of 12:21 BST.