Trading Update

RNS Number : 0867E

GVC Holdings PLC

25 May 2012

 



Press Release

25 May 2012

GVC Holdings PLC

("GVC" or the "Group")

Trading Update

GVC Holdings PLC (AIM:GVC), a leading provider of B2B and B2C services to the online gaming and sports betting markets, is pleased to provide the following updated trading data for the period from 1 January 2012 to 20 May 2012 along with comparatives for 2011.

Turnover across the Group for the period increased 168% to €279k per day (2011 €104k).

B2C division - turnover rose 7% to €105.2k per day (2011: €98.4k per day)

TURNOVER PER DAY in €000's
			Period to 20 May			Year to
			2012	2011		31-Dec-11
B2C			105.2	98.4		104.7
B2B			174.1	5.8		27.6
			279.4	104.2		132.3
B2C
	Betboo
	Sports wagers		115.4	45.8		67.0
	Sports Margin		8.5	5.9		7.2
	Sports margin %		7.3%	12.8%		10.8%
	Sports NGR		5.7	4.2		6.0
	Gaming NGR		21.0	16.1		18.1
			26.7	20.3		24.1
	CasinoClub		78.5	78.0		80.5
	TOTAL B2C		105.2	98.4		104.7

B2B division - turnover reached €174.1k per day following the entering into the service contract with East Pioneer Corporation B.V. ("EPC") on 22 November 2011. The figures in 2011 amounted to just €5.8k per day from trading in similar markets.

TURNOVER PER DAY in €000's
			Period to 20 May			Year to
			2012	2011		31-Dec-11
B2B
	Sports wagers		1,377.0	73.0		226.1
	Sports Margin		160.0	4.9		24.0
	Sports margin %		11.6%	6.7%		10.6%
	Sports NGR		136.4	3.3		17.9
	Gaming NGR		37.7	2.5		9.7
			174.1	5.8		27.6

Kenneth Alexander, Chief Executive of GVC, said: "We are extremely pleased with the performance in both divisions.  B2C sports margins, have been adversely affected by favourable punter outcomes this year, which has suppressed an otherwise excellent start to the year.  GVC's agreement with EPC is progressing well with daily turnover now exceeding €174k per day.

"Whilst economic conditions in Europe continue to be volatile, we remain cautiously optimistic for the year.  The Group has today paid its shareholders an increased dividend of €11 cents per share, compared to the €10 cents per share GVC paid in 2010."

With the completed sale of Betaland, and an impending change in applicable accounting standards (IFRS 10), GVC has this opportunity to provide a restatement of its 2011 income statement and KPI's to aid investors and this is illustrated below.

INCOME STATEMENT RESTATEMENT
Ex-Betaland and showing gross EPC turnover
	2011	2011	2011	2011		2010	2010	2010	2010
	Original	Betaland	EPC	Restated		Original	Betaland	EPC	Restated
	€000's	€000's	€000's	€000's		€000's	€000's	€000's	€000's
- B2B	6,128		3,944	10,072		-			-
- B2C	58,218	(20,006)		38,212		54,907	(22,278)		32,629
Turnover	64,346	(20,006)	3,944	48,284		54,907	(22,278)	-	32,629
Contribution	24,709	(4,159)	-	20,550		23,329	(4,205)		19,124
Expenditure	(14,691)	2,523	-	(12,168)		(11,165)	2,266		(8,899)
Clean EBITDA	10,018	(1,636)	-	8,382		12,164	(1,939)	-	10,225
Exceptional items	(4,823)	-		(4,823)		(4,428)			(4,428)
Share option charges	(440)	-		(440)		(482)			(482)
Depreciation and Amortisation	(2,257)	233		(2,024)		(2,096)	386		(1,710)
Financial income & expense	(2,382)			(2,382)		(1,080)			(1,080)
Profit before tax	116	(1,403)	-	(1,287)		4,078	(1,553)	-	2,525
Sports stakes
B2B	44,453	-	38,082	82,535		-			-
B2C	76,279	(51,840)		24,439		69,313	(55,934)		13,379
	120,732	(51,840)	38,082	106,974		69,313	(55,934)	-	13,379
Note:
The adjustment to B2B turnover reflects the overall income attributable to EPC from their acquisition of Superbahis from Sportingbet plc
As the payments to Sportingbet plc are deducting from this figure, the contribution does not change

- Ends -

For further information:

GVC Holdings PLC
Kenneth Alexander, Chief Executive Officer	Tel: [phone]
Richard Cooper, Group Finance Director	www.gvc-plc.com

Daniel Stewart & Company Plc	Tel: [phone]
David Hart / Paul Shackleton / Jamie Barklem	www.danielstewart.co.uk

Media enquiries:

Abchurch
Henry Harrison-Topham / Oliver Hibberd	Tel: [phone]
[e-mail]	www.abchurch-group.com

About GVC Holdings PLC

GVC Holdings PLC is a leading provider of B2B and B2C services to the online gaming and sports betting markets.  The Group is headquartered in the Isle of Man and is licensed in Malta, and the Netherlands Antilles.

Further information on the Group is available at www.gvc-plc.com

 

END

 

 

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