Merger seeking GVC Holdings posts strong finish to 2017

Merger seeking GVC Holdings posts strong finish to 2017

Friday, January 12, 2018 Posted by Luke Massey
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The Group announcing a record quarter of NGR to close 2017

FTSE listed online gambling group GVC Holdings has reported a strong end of year trading, with the company expecting to publish full-year corporate results at the top end of its management expectations.

Publishing its Q4 2017 trading update, GVC recorded group net gaming revenues (NGR) of €279 million, up from €231 million in the corresponding period of 2016, which continues its strong post bwin.party merger momentum.

Detailing operational highlights, GVC pointed to the robust performance of its sports betting division, which generated an average daily NGR of €1.2 million despite the closure of GVC Turkish betting assets during the period.

Ahead of publishing its full-year 2017 results on 24 March, the company declared that on current trading it expects to deliver a group NGR of €1 billion.

Kenneth Alexander CEO of GVC Holdings, commented: "I'm delighted to report another strong year for the Group with underlying NGR growth of 18%, reflecting the strength of our brands, technology and the hard work of our talented people. We have once again demonstrated our ability to integrate significant acquisitions, realise material synergies and at the same time deliver top line growth.”

GVC currently awaits the final outcome of an accepted £4 billion takeover bid for one of its FTSE competitors. Last December, Ladbrokes Coral Plc accepted the terms of GVC’s takeover bid, which proposes a deal value of £4 billion dependent on the outcome of the UK government’s review on FOBTs machine wagering levels.

Ladbrokes Coral shareholders have been asked to vote on creating a new FTSE multi-channel, multi-market gambling group.

“The recommended transaction with Ladbrokes Coral Group presents an exciting opportunity for both sets of shareholders,” Alexander added. “It would create a global gaming group with a portfolio of strong brands across all major regulated online markets, together with proprietary technology and proven management."

Totally Gaming says: A strong closing quarter to 2017 will do GVC no harm as it enters the final hurdle of its bold £4 billion takeover of Ladbrokes Coral Plc. Will the shareholders of legacy Ladbrokes and Coral enterprises be persuaded to combine with GVC digital only assets… only time will tell.

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