DAVY VIEW

GVC’s sustainability and growth roadmap is more ‘important line in sand’ than ‘full strategic reboot’. It highlights the promising sector growth outlook (the preserve of a select few) and puts in place important operational and strategic tramlines for the group. Our first impression is that this creates a much-needed narrative for the stock – it is designed to provide confidence about the quality and sustainability of its earnings base and is likely to spark debate about the appropriate earnings multiple for the group’s online business. While we continue to digest the strategic detail, we set out in this report what we learned, and what we think, about the key topics at hand.