A “positive” World Cup helped to kick revenues higher at FTSE 100-gambling group GVC Holdings PLC (LON:GVC) in the first half of 2018.
Bookies tend to make more money when the favourites don’t win. Although eventual winners France were one of the fancied pre-tournament teams, a number of others, including Spain and Germany, crashed out early on.
England’s semi-final exit is also expected to have helped as the wave of positive sentiment which swept the nation following the Three Lions’ first few performances likely encouraged more punters to back their home team.
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Net gaming revenue (NGR) at GVC, which owns Ladbrokes and Coral, climbed 8% in the six months through to June 30. Online NGR growth was particularly impressive, jumping 18% year-on-year, thanks to some high-profile marketing campaigns.
Falling footfall on UK high streets has hit betting shops over the past couple of years and UK retail like-for-like NGR were down 3% compared to the same period a year ago. European retail NGR rose by 29%.
“The World Cup tournament as a whole has been a good one for the group, helped by a better than expected gross win margin but also importantly volumes and value of new customer deposits,” read Wednesday’s statement.
“UK retail trends improved in the second quarter as the weather proved less disruptive than in the first quarter, while growth in European retail remained very strong, albeit helped by a soft comparative.”
Chief executive Kenneth Alexander added that he was “pleased” with the performance, while the continued growth of the online business means GVC is on track to hit full-year expectations.
Shares dipped 1% to 1,096p at the opening bell on Wednesday morning.