Ladbrokes (LON: LCL) and Bwin owner GVC holdings (L: GVC) has announced the exit of their CEO, Kenny Alexander, on Thursday after successfully running the company for 13 consecutive years. Alexander has actively served the company over the years, making major transitions to what the company is today.
Alexander transformed the company to be one of the biggest gambling companies across the globe. The outgoing CEO oversaw a series of major acquisitions that had sustained the company despite the current Coronavirus pandemic which forced the closure of all gambling shops. The very able Chief Operating Officer Shay Segev is to take over his position.
The outgoing CEO built GVC from a small company to a multi-billion one that has over 25,000 staff currently. The 51-year old Scottish-born CEO said that he was quitting to spend more time with his family. His replacement, Shay Segev, has been in line to take over, having served for four years as the COO.
The company’s shares, however, dropped by around 6%, following Alexander’s resignation. AJ Bell investment director Russ Mould said that the share price reaction to the resignation of the outgoing CEO explains a lot about how the market views someone. He added that it seems like the investors do not want him to step down as the CEO.
Kenny Alexander organized GVC’s $5.02 billion (£4 billion) acquisition of sports giants Ladbrokes Coral and its tie-up with casino operator MGM Resorts which established its footing in the U.S. sports betting market.
Isle of Man-based GVC said the response from customers has been encouraging, following the reopening of its shops. Online sports activities are also close to pre-coronavirus levels. The company also expects H1 2020 revenue between £340-350 million, much higher than what Berenberg’s analysts had predicted.