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GVC reports rise in 2017 net gaming revenues, boosted by bwin.party

GVC is expanding with the acquisition of Ladbrokes Coral and Crytalbet
gambling
Shares in the gambling company are higher in morning trade

Gambling company GVC Holdings PLC (LON:GVC) reported a 17% increase in full year net gaming revenue, boosted by a strong performance in the bwin.party businesses it acquired in 2016.

GVC, which is set to buy bookmaker Ladbrokes Coral, said net gaming revenue came to €925.6mln in 2017, up from €794.3mln a year earlier.

The acquisition of online gaming company bwin.party in February 2016 has lifted revenues and delivered cost synergies, GVC said.

"GVC achieved a significant amount in 2017 and as these numbers demonstrate, we have delivered material value from the bwin.party acquisition,” said chief executive Kenneth Alexander.

Shares rose 2.6% to 924.50p in morning trading. 

The sports division delivered a 19% increase in net gaming revenue to €331.2mln with amounts wagered up 2% despite a tough comparative with the Euro 2016 football tournament.

Clean underlying earnings (EBITDA) – its preferred measure of profits –  rose to €239.5mln.  

The dividend was lifted to €0.34 each from €0.30 last year. Net debt narrowed to €108.6mln from €126.1mln.

Shareholders approve Ladbrokes acquisition 

The company is planning to buy Ladbrokes, which is expected to achieve at least £100mln of annualised cost synergies. Shareholders of both companies have approved the deal.

READ: GVC to buy rival Ladbrokes Coral in deal worth up to £4bn

Alexander said the deal “represents an exciting opportunity, bringing together industry leading online and retail brands”.

“Our core markets offer attractive growth prospects but we also recognise the opportunity presented by our proprietary technology to create significant synergies through M&A,” he said.

Earlier this month, GVC also announced it would buy a 51% stake in Georgia online gaming company Mars LLC, which trades as Crystalbet. GVC expects to purchase the remaining 49% stake in 2021.

 

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