Annual Report & Accounts 2015 - PRINCIPAL RISKS AND UNCERTAINTIES
Risks and uncertainties Mitigation
Brexit: if the outcome of the June referendum is
that the uK leaves the eu, this may increase the
volatility of global currency and financial markets.
in addition, it may reduce the Group's ability to
operate in certain eu markets without a change in
domiciliation, which could carry a higher tax
monitor the situation. the Group has licences in a
number of eu countries including: malta,
Denmark, italy, france, romania, Greece,
Germany, as well as licences in the Brexit zone
increases in euriBor will increase the interest
cost for the Group. the loan arrangements contain
covenants which, if breached, would trigger early
repayment of the facility.
maintenance of cash headroom mitigates some
interest rate risk and provides flexibility of early
repayment. Covenants are monitored on a
the market place becomes more competitive via
new entrants or more attractive products available
from those or existing competitors.
withdrawal of payment processing facilities.
reliance on third party payment and multicurrency
Dependence on third party software.
Dependence on key personnel.
Loss of major introducer of business.
Loss of major customer.
poor sports results.
abnormal jackpot wins.
Business integration process following the
acquisition of bwin.party: risk of business
disruption and the impact on staff; risk of
unexpected costs or constraints on delivering
monitoring of the competitive landscape.
working with software providers to enhance the
multiple payment processing methods used by the
spreading of risk across payment processors with
varying deposit and withdrawal methods.
Long-term contracts in place with key suppliers.
there is a broad base of executives below Board
level which has been strengthened with recent
Competitive revenue sharing models applied and
monitored regularly. Key introducers are offered
long-term revenue prospects with the Group to
ensure alignment of financial interests.
highly diversified customer base with thousands
of customers across all brands.
sports represents c.50% of the Group's net
gaming revenue and as a matter of policy they are
not hedged as over the longer term sports results
trend to the Group's expected margin percentage.
revenues from some business lines have a
jackpot insurance policy; others do not, as a
matter of policy.
regular monitoring by management.
GVC HOLDINGS PLC ANNUAL REPORT 2015