Kenny Alexander, chief government of GVC image: David Rose, Telegraph Media group
walk into Kenny Alexander's office, and it's immediately obtrusive the boss of betting enterprise GVC is a gambling man. a copy of the Racing submit lies on his desk; the red and yellow silks worn by way of Richard Dunwoody when he rode Minnehoma to victory within the 1994 Grand country wide are framed on the wall; and a tv is tuned to at the Races.
"i really like going to the racing, looking at the horses, following the form," the GVC chief executive says. Alexander has a flutter every day, if now not on the horses then on soccer, an extra of his sporting passions.
"I retain a observe of all my bets, and i'm not dangerous at the racing. The football i thought i was fairly respectable at, however I've passed through a horrific run."
Alexander, a 46-yr-ancient Scot who owns 4 racehorses, clearly enjoys gambling, and not just on sport. because taking the helm of GVC nine years ago, he has increased it via ambitious deals, from an goal-list ed minnow valued at £26m to a web playing gigantic on the cusp of getting into the FTSE 250.
GVC's newest deal, the £1.1bn reverse takeover of better competitor Bwin.birthday party it's due to comprehensive subsequent month, is Alexander's most daring gamble yet. In September, he triumphed in a bidding combat with rival 888 to clinch a cash-and-shares takeover of the enterprise, which owns the Bwin, PartyPoker and foxy Bingo manufacturers. He persevered even after Bwin's board at the start accredited a paper-and-money bid from 888.
"It become a video game of poker," recalls Alexander, sitting at a desk in his office in the metropolis. He became satisfied all over the tense duel with 888 that GVC would ultimately win.
"We were all the time assured that the [Bwin] board would trust our paper can be worth greater within the long run than 888's, as a result of the synergies and our tune record," he says. As part of the deal, GVC is relocating from aim to a premium listing on the main market of the London stock exchange. The enlarged company's measurement ability it is anticipated to enter the FTSE 250.
It will be a proud moment for Alexander, who has adored sport and playing for the reason that he became a boy transforming into up in North Ayrshire. trips to Ayr racecourse and Kilmarnock soccer fits along with his father fostered a passion for having a bet. "It's just the thrill and the excitement, and the highbrow challenge" of deciding upon winners, he says. "As lengthy because it's stored below handle, it's a fine activity."
After discovering accountancy on the college of Glasgow, Alexander joined provide Thornton in 1991 to turn into a chartered accountant. Following five years on the company, he moved to become a financial controller at a meat products manufacturing unit run by way of Hazlewood meals. The job was naturally now not for him.
"Doing the debits and credit for packed meat, it's no longer a lot fun, i can assure you," he jokes. An advertisement for a monetary job at Sportingbet provided Alexander, in 2000, the possibility to work in an industry he had always loved.
Seven years later, Alexander became head of Sportingbet's European business, accountable for its operations in 16 international locations. however GVC then provided him an excellent more suitable challenge.
"It became an opportunity to turn into a CEO of a publicly listed company," he says. "at the time, all GVC had turned into CasinoClub, the German-dealing with casino. The remit i was given turned into to diversify."
A small deal to buy Betboo in 2009 pushed GVC into sports having a bet and Brazil. Alexander adopted it three years later by way of partnering with William Hill for a £485m bid to carve up Sportingbet, the company where he began his playing career. The bookie took over Sportingbet's Australian division, while GVC acquired its operations in unregulated, "gray markets".
"It did help that we knew the enterprise pretty smartly," says Alexander. "We concept there were concerns with the style it changed into being run – revenues had been declining and its charge base become too high. Bwin is a similar case."
Bwin.celebration suffered from vulnerable buying and selling ever because its creation from the 2011 merger of Austria's Bwin and Partygaming. however after years of falling web revenues, Bwin's remaining replace as an impartial enterprise earlier this month confirmed a 5pc year-on-year upward thrust in revenue, suggesting the enterprise is popping a nook. "They've in fact hit the bottom," the GVC boss says. "I'm extra assured about Bwin than i used to be in regards to the Sportingbet deal."
Alexander believes he can achieve €125m (£96m) in annual charge rate reductions during the Bwin takeover. He additionally reckons he can get Bwin becoming once again. "the primary factor is to in fact intensify the CRM [customer relationship management] activities," the GVC boss explains. "I don't think they're probably taking care of their VIPs and their excessive-value players as neatly."
He dismisses information that the improved disclosure needed from GVC once within the FTSE 250 will cause problems. Some 45pc of the enlarged enterprise will still function within the murkier gray markets, however Alexander insists GVC is "fully comfy" with the stricter standards that could be required. "As an goal company, we've disclosed more than we've ever needed to do," he says.
The hazard of legal motion will not distract GVC from its turnaround of Bwin either, in line with Alexander. Canadian enterprise 37 leisure has claimed GVC reneged on an contract to install web sites in Canada. It wants to attain an arbitration contract with GVC within the foreign Chamber of Commerce in London, but Alexander laughs off the challenge and says: "They've got absolutely no declare in any way, it's very spurious."
If the revival of Bwin goes to devise, the GVC boss believes he may well be returned on the hunt for another acquisition in a 12 months's time. "We'd love to do extra deals," he says, adding they'd doubtless be sportsbooks in regulated territories. The trade is in the throes of consolidation, with Ladbrokes merging with Coral and Betfair combining with Paddy power.
Alexander concedes that GVC will be "a very alluring business" to a suitor should it correctly turn around Bwin. but while GVC may additionally offload some smaller ingredients of Bwin, Alexander isn't deliberating selling the total enterprise any time quickly.
"What we wish to do is keep growing to be it. My ambition is to get ourselves into the FTSE 250 and fairly frankly to get into the FTSE one hundred fairly without delay after that."
It's an audacious goal. however given the success Alexander has already had in reworking GVC into an enormous player in gambling, you'd be brave to bet in opposition t him.
