GVC chief executive Kenny Alexander today branded the controversial marketing tie-up between 32Red, Derby County and Wayne Rooney as “preposterous”.
The boss of the company behind Ladbrokes, Coral and Party Poker said the deal undermines industry attempts to embrace Responsible Gambling.
Other critics of the deal – which sees Rooney’s £90,000 a week wages paid by 32Red – include his wife Coleen, said to be worried that Rooney will be tempted back into gambling. He once blew £1 million on roulette and blackjack in a few hours.
Alexander said: “This is an industry that has been under a fair amount of attack for 12 months and longer. There is a huge debate around problem gambling. The industry has got an image issue and that is just a complete own goal. It is preposterous and ridiculous.”
He was talking as GVC unveiled half-year results that topped City forecasts. Revenue jumped 5% to £1.78 billion, allowing for a 10% increase in the dividend at 17.6p.
The digital business is doing well. “If you look at our competitors, we’ve materially outperformed them, yet again.”
As part of its commitment to responsible gambling, GVC has volunteered a “whistle to whistle” TV advertising ban. It rebranded its shirt sponsorships and Charlton Athletic and Sunderland to “Children with Cancer”. The charity will get £1 million from the move.
Alexander said the industry could use technology better to track problem gamblers.
“There are some people for whom it is destructive” he said. “The industry needs not to shoot itself in the foot.”
Alexander and chairman Lee Feldman sold nearly £20 million of shares in March, unnerving the City and sending the stock down. Today the shares were up 5% to 574p.
Brokers at Berenberg think the stock could double from there.
Alexander dismissed criticism that he sold GVC’s Turkey arm to a business partner.
“If you are selling a gambling business in Turkey, there’s only so many people who can buy it,” he said.
