GVC looking ahead after strong results

GVC looking ahead after strong results

Monday, December 7, 2015 Totally Gaming
GVC reported big increases in gaming and sportsbook revenue

GVC shares were up more than three per cent this morning (Monday) after the company announced double-digit growth in revenue for both the last two months and the year-to-date.

In a trading update, the company, which owns Sportingbet and is in the process of buying bwin.party, said that “strong trading has continued during the period under review, despite currency headwinds”.

GVC’s share price stood at around 400p on Monday morning, still down by around 11 per cent compared to the 453p valuation on the day the company’s €1.4bn ($1.6bn) bid for bwin.party was accepted on September 4.

GVC announced that average daily net gaming revenue in October and November was up 11.7 per cent on the same period of 2014 at €716,000 ($776,407). The figures for the 11-month period to November 30 came in at €677,000, up 10.5 per cent on the same period in the previous year.

Net revenue from gaming was up 12.5 per cent to €338,000 per day and, for the year-to-date, rose 16.1 per cent to €677,000 per day. Net revenue from sports betting was up 10.8 per cent to €328,000 per day and, for the year-to-date, rose 4.8 per cent to €315,000 per day.

Kenneth Alexander, chief executive of GVC, said that the company expects further progress following the proposed takeover of bwin.party.

“I am delighted to announce the continued strong financial performance of GVC for the first two months of the last quarter,” Alexander said. “The board remains confident that the outturn for the 2015 financial year will be very positive.

“GVC has an excellent track record of growing revenues and turning around under-performing assets and the GVC board is highly confident that a positive vote at the EGM on 15 December 2015, to approve the proposed acquisition of bwin.party, will be the next transformational move for the GVC Group.”


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