Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

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.

 

View full GVC profile View Profile

GVC Holdings Timeline

Related Articles

Amusement park
February 14 2018
Berenberg's analysts pointed out that accesso's end-to-end technology stack combined with its global footprint positions the group well in a market that is fragmented by product, geography and vertical
China leisure resort
December 18 2017
The new management team has a history of turning companies around
ZoomAway Travel Inc embracing blockchain, which is set to push out middle man in hospitality and act
January 11 2018
The firm plans to begin rolling out cryptocurrency payments into its white label and registration management system (RMS) clients

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use