Bwin acquisition continues to drive GVC in first half

Josh White WebFG News | 14 Sep, 2017 09:33 | | |

gvc-holdings foxy
  • 919.50
  • 0.38%3.50
  • Max: 920.50
  • Min: 897.50
  • Volume: 1,063,328
  • MM 200 : n/a
17:18 17/11/17
  • 19,797.83
  • -0.26%-52.17
  • Max: 19,861.05
  • Min: 19,747.99
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17
  • 9,615.07
  • -0.66%-63.67
  • Max: 9,682.98
  • Min: 9,607.06
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17
  • 4,102.67
  • -0.12%-4.73
  • Max: 4,116.61
  • Min: 4,089.64
  • Volume: 0
  • MM 200 : n/a
17:18 17/11/17
  • 4,051.78
  • -0.11%-4.62
  • Max: 4,065.06
  • Min: 4,039.36
  • Volume: 0
  • MM 200 : n/a
17:25 17/11/17

Sports betting and gaming provider GVC Holdings posted a 10% proforma improvement in its net gaming revenue for the first half on Thursday, or 12% at constant currency, to €486.2m, while its total revenue was ahead 9% at €472.8m, or 11% at constant currency.

The FTSE 250 operator of brands such as Foxy Bingo said its clean EBITDA for the six months to 30 June was €133.9m, a 28% proforma rise year-on-year, while adjusted profit before tax stood at €101.9m for the period.

Adjusted, fully diluted earnings per share were 55% higher on a reported basis at 31 euro cents, and the GVC board declared a 16.5 cent dividend per share.

On a statutory basis, the company made a loss of €6.6m, narrowing from the €86.1m loss reported in the first half of 2016.

Net debt was €150.7m at the end of the period, which made for a ratio of 0.6x to clean EBITDA.

“I am delighted with the strong progress across the group, which has continued to exceed our expectations since last year's acquisition of,” said CEO Kenneth Alexander .

“A combination of high quality talent, proprietary technology and proven brands are key components driving the business forward. Scale and geographic diversification are increasingly important as the regulatory environment evolves and competition increases.”

On the operational front, GVC’s gross win margin in sports brands was 9.8% against a pro forma 9.1% a year ago, with the board saying it was on target to achieve a €125m synergy run rate by the end of 2017.

The €29m disposal of Kalixa Group was completed in May 2017, with the firm claiming up to €2.6m in deferred consideration.

Looking at current trading up to 10 September, GVS said daily group net gaming revenue was up 12% with underlying daily net gaming revenue rising 20%.

The board said it now expected clean EBITDA for the current year to be “comfortably ahead” of analyst consensus.

“The strong performance of the business together with the smooth integration of continues to present exciting organic growth opportunities,” Kenneth Alexander added.

“In addition, given its proven track record of creating shareholder value, GVC remains well positioned to continue to play a pivotal role in the industry's consolidation, should the right opportunities arise.”

More news

17 Nov Europe close: Stocks slip going into the weekend

Stocks reversed early gains as investors opted to play it safe going into the weekend and the euro edged a tad higher on the back of the political gyrations on Capitol Hill.

17 Nov Europe open: Stocks start slightly higher, analysts wary

Stocks have started the morning trading slightly higher, tracking overnight gains on Wall Street but analysts are worried about buying into Thursday's bounce.

17 Nov London close: Stocks finish week on down note

London's top flight index slipped on Friday, but managed to finish well-off its lows of the session despite renewed Brexit angst as the pound gave back early gains.

17 Nov Kingfisher gets RBC upgrade as 'reasons to be cheerful' in France

DIY retailer Kingfisher has more "reasons to be cheerful" thanks to an improving French outlook, analysts at RBC Capital Markets said on Friday, while clothes seller Supergroup remains "compelling" but its shares have gained a lot in recent weeks.

17 Nov NAV on the rise as Alpha Real Estate Trust turns focus to build-to-rent market

Real estate investment group Alpha Real Trust saw its net asset value (NAV) rise in its first half of trading as it moved to make further investments in build-to-rent projects.

17 Nov Pacific Industrial & Logistics completes sale of Bedford asset

Industrial and logistics-focussed real estate investment trust Pacific Industrial & Logistics has completed the sale of an asset located at Hammond Road, Bedford, for a total consideration of £5.8m, it announced on Friday.

17 Nov DP Poland cuts ribbon on 50th Polish Domino's store

DP Poland, which holds the exclusive master franchise for the Domino’s Pizza brand in Poland, celebrated the opening of its 50th location in the country on Friday.

17 Nov Mercia Technologies makes new investment into Aston EyeTech

National investment group Mercia Technologies has made a new direct investment into Aston EyeTech - a spinout from Aston University, Birmingham - which has developed a range of proprietary hardware and software products in ocular care, it announced on Friday.

17 Nov SimiGon receives final approval for $2m Israeli Air Force order

Modelling, simulation and training solutions provider SimiGon has now received final regulatory approval for a $2m purchase order received from the Israeli Air Force, initially announced on 20 June 2016, it confirmed on Friday.

17 Nov Agriterra losses grow after 'subdued' interest in corn products

Agricultural investment group Agriterra saw losses widen in the first half of its trading year as subdued demand for its maize flour products slashed revenues by more than a third.