GVC Holdings interim profit slips on Bwin-related costs
Online gambling operator GVC Holdings posted a small drop in interim pre-tax profit as the company said it was hit by costs related to its pursuit of Bwin.Party Digital Entertainment.
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For the six months ended 30 June, pre-tax profit came in at €17.07m versus €18.02m in the first half of last year, as it shelled out €3.8m in fees relating to its potential acquisition of Bwin.Party.
Revenue for the period was up at €120.9m from €105.1 in 2014.
The company, which is currently competing against 888 Holdings to nab Bwin.Party, said net gaming revenue rose 15.3% to €65m, although the gross martin in sports fell to 8.8% from 9.9% in 2014.
The group declared an interim dividend of 42 cents a share, which was up 5% on last year.
On Thursday, Bwin announced that key aspects of GVC’s proposal had been addressed to its satisfaction and asked GVC to clarify, with respect to its proposal, the best terms on which it is prepared to make a formal offer to acquire the business.
On Friday, GVC’s chief executive officer, Kenneth Alexander, said: ""With our track record of delivering value through organic growth and acquisitions we are determined that GVC will play an important role in the continuing consolidation of the online gaming sector. We expect to update the market soon about our discussions with Bwin.Party Digital Entertainment plc."
The company said that if successful, “the reverse takeover would be a further transformational step for the group and its shareholders.”
At 1113 BST, GVC shares were up 1.1% at 439.95p.