Internet gaming and sports betting company GVC PLC operates within an industry where corporate responsibility is of utmost importance to both the company’s underlying customer base as well as to both legislators and regulators that allow the company to continue to operate. It is therefore essential that our investment case is not only predicated upon the underlying financial metrics of the company but also takes account of management’s approach to such issues and, in particular responsible gambling. To address this issue, and to allow us to assess the company’s commitment toward corporate responsibility, we have approached the chair of GVC’s Remuneration Committee requesting that consideration be given to embedding responsible gambling and other non-financial metrics into senior management’s LTIP (Long Term Incentive Plan). Not only will this give us more comfort that these issues are being taken seriously, but will also provide a strong economic incentive for management to focus time and resources on what potentially is a key risk factor for our investment case. GVC are reassessing their remuneration policy in the second half of 2019 so we look forward to the outcome.
This publication and the views expressed in it are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any of the funds or securities mentioned and does not constitute investment research, investment recommendation or investment advice. At the time of writing SVM Asset Management Ltd may hold positions in the securities mentioned in this article.