Bwin acquisition continues to drive GVC in first half

Josh White Sharecast | 14 Sep, 2017 09:33 | | |

gvc-holdings foxy
  • 838.50
  • -2.50%-21.50
  • Max: 851.50
  • Min: 838.50
  • Volume: 800,409
  • MM 200 : n/a
16:55 21/09/17
  • 19,411.55
  • -0.66%-129.22
  • Max: 19,542.48
  • Min: 19,405.59
  • Volume: 0
  • MM 200 : n/a
16:45 21/09/17
  • 9,232.85
  • -1.34%-125.43
  • Max: 9,358.51
  • Min: 9,230.70
  • Volume: 0
  • MM 200 : n/a
16:45 21/09/17
  • 4,036.55
  • -0.17%-6.90
  • Max: 4,048.50
  • Min: 4,033.21
  • Volume: 0
  • MM 200 : n/a
16:45 21/09/17
  • 3,986.18
  • -0.17%-6.75
  • Max: 3,997.75
  • Min: 3,982.99
  • Volume: 0
  • MM 200 : n/a
16:50 21/09/17

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

17:02 Capita dives despite making progress in first half, results 'difficult to read'

Capita reported a mixed set of results for the first six months of the year but said underlying profits would "rise modestly" in the second half compared to the first, though some investors and analysts found the numbers rather disappointing and difficult to decode.

16:58 Capita staff prepare for strikes over pensions

Alongside Capita's labyrinthine half-year results that left many investors cold and sent the shares down 11%, the company was also forced to prepare for industrial action after unions voted to strike.

16:53 Chevron cancels drillship contract with Transocean

Chevron blew a hole in Transocean's share price on Thursday after cancelling its contract for ultra-deep water drillship Discoverer Clear Leader one year ahead of its scheduled expiry, effective from the following November.

16:21 Barnier fires shot across May's bows ahead of Florence speech

Ahead of the UK Prime Minister's major Brexit speech on Friday, chief European Union Brexit negotiator Michel Barnier has warned Theresa May against trying to have her cake and eat it and stressing that if a transition period is requested it will first require a withdrawal agreement.

16:16 US open: Stocks dip as two-year yields hover near eight-year highs

Stocks are stuck in a bit of a rut as traders try to work out the implications of the US central bank's policy announcement the night before, despite a raft of better-than-expected readings on the economy.

15:54 IG Design Group swallows Aussie card firm Biscay

Designer and manufacturer of celebration, gifting, stationery and creative play products IG Design Group announced on Thursday that it has signed a contract to acquire the trade and certain assets of Biscay Greetings, which it described as a “leading” greetings card and paper products business based in Australia.

15:54 Friday preview: Importance of May's Brexit speech 'cannot be over-emphasised'

Theresa May's Big Brexit Speech in Florence may dominate the narrative on Friday, though for traders and investors there's PMI surveys and one from the CBI, with results from Sage and Smiths Group.

15:52 Engineering studies to enable Liberator field begin, i3 says

Independent oil and gas company i3 Energy announced on Thursday that detailed engineering studies to enable its 100% owned-and-operated Liberator field, to be tied into the existing Blake field 'host' infrastructure and produced through the Bleo Holm floating production storage and offloading vessel (FPSO) had commenced.

15:50 FTSE 250 movers: Kier rallies on results but Capita crumbles

London's FTSE 250 was down 0.6% to 19,422.90 in afternoon trade on Thursday.

15:39 Eurozone consumer confidence increases in September

Eurozone households are feeling more confident about the economic situation, according to a key European Commission survey released on Thursday afternoon.