Kenny Alexander Leaves GVC Holdings
While not always undisputed, Kenny Alexander was in the played a key role in the positive development at GVC Holdings in recent years. The Corona crisis also hit the group at most in the stationary sector, while the Internet area can show a plus. So the question of the reasons remains. And the former CEO delivered it himself.
Take more time for family
13 For years, Kenny Alexander was active at the gaming company GVC Holdings. In recent years, the CEO has subordinated almost everything to his job, thus ensuring that his company has been able to develop more and more. Apparently, that had its price. As Alexander announced, he now wants to devote more time to his family in the future, which has often fallen by the wayside in the past. For this reason, the 51-year-old will not only resignwith immediate effect as CEO of GVC Holdings, but will also give up his seat on the board of the gaming group. This is reported by the news serviceReuters UK This should have been a real bang for the group. After all, Alexander enjoys the reputation of being instrumental in the takeover of Ladbrokes Coral and the establishment of partypoker.
The whole truth is that Alexander was never entirely undisputed by his critics. Thepost of CEO of GVC Holdings has come under severe criticism in recent years after several years of salary payments in the millions. Some time ago, the group then capped the CEO salary to a maximum of around 898,000 euros per year.
Shay Segev will be the successor
In the search for a successor for Alexander, the gaming group quickly found what he was looking for in his own company. It is said thatCurrent COO, Shay Segev, will lead the fortunes of the listed company. Unlike his predecessor, according to media reports, Segev will "only" receive a salary of around 743,000 euros per year.
In a note, Alexander stated that he enjoyed every minute at the company and was proud of what they were able to achieve together. In the last few months, the head of the company has worked a lot at home and used the time to think about his future. The step of withdrawing was therefore the right decision at this point in time, according to Alexander. It is understandable that the 51-year-old could use a break for the time being. In the last few months alone, there has been an enormous amount to do. GVC Holdings has relocated its headquarters from the Isle of Man to London. It is said that the company wants to ensuremore flexibility in management control. However, the online business will continue to be controlled from Gibraltar and will not be affected by the move.
Corona crisis drives online growth
GVC Holdings can also present its semi-annual report almost in the same breath as the announcement of Alexander's resignation. The company can look back on a decent first six months of the year overall. That should also please Alexander, who can say goodbye to his post with such honor. Like almost all companies, GVC Holdings has to accept a minus in the stationary area due to the Corona crisis. Here, the total revenue fell by around eleven percent compared to the previous year. That sounds like a lot, but the minus is made up for elsewhere: online.
In the first six months of the year, online business was able to generatean increase of 22 percent compared to the previous year. According to the latest reports, it is also to be expected that the stationary sector will also be able to grow again. After all, the corona restrictions are gradually being relaxed in many countries. On what is probably the most important market for GVC Holdings, the home market in Great Britain, theCasinos in the stationary area will open their doors again from August 1st. After the recent heavy losses, it can then be expected that the situation will relax significantly again. That would certainly be good news for the new boss Segev. After all, taking on the leadership role of a global corporation in the midst of a worldwide pandemic is not the easiest of tasks.
Gambling industry is slowly recovering
Although the numbers from the online area at GVC Holdings are really impressive, the situation in the global gaming market is still tense. The stores are only slowly reopening in the stationary sector. Recently, for example, theBritish gambling association from the Betting and Gaming Council (BGC) addressed the government and asked them to relax the corona measures for the gambling sector as well. The companies were prepared and could guarantee the safety of the guests, it was said at the time. The asking was increased. From next month, Brits will be allowed to play in casinos again. In other countries, politicians were able to decide to take this step a little earlier. Even in Las Vegas, the casinos have reopened, although the number of infections in the USA is still at an alarmingly high level.