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GVC Holdings PLC (GVC)

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Thursday 11 January, 2018

GVC Holdings PLC

Trading Update

RNS Number : 5410B
GVC Holdings PLC
11 January 2018
 

11 January 2018

GVC Holdings PLC
 ("GVC" or the "Group")

Trading update

GVC Holdings PLC (LSE: GVC), the multinational sports betting and gaming group, is pleased to announce the Group enjoyed a record quarterly NGR in Q4 2017 and, as a result, NGR for the year to 31 December 2017 is expected to be c€1,009m. On an underlying1 basis this represents growth of 18% on pro forma2 2016. The Board expects Clean EBITDA3 for the same period to be at the top end of management's internal expectations.

Key highlights (year to 31 December 2017 unless stated)

·      Total NGR c€1,009m, an increase of 13% on pro forma 2016

·      Underlying NGR growth +18% on pro forma 2016

·      Clean EBITDA is expected to be at the top end of management's internal expectations

·      Q4 NGR €279.5m - a record since the acquisition of bwin.party in February 2016

·      Q4 underlying NGR growth +31% - strongest quarter since bwin.party acquisition

Q44 Trading

Daily NGR for the fourth quarter increased by 21% (+25% in constant currency) and on an underlying basis, was 31% higher. At €279.5m, Q4 2017 NGR was the highest achieved by the Group since the acquisition of bwin.party.




        ACTUAL

UNDERLYING

Per day in €000's

Q4-2017

Q4-2016

Change

Change CC

Change


92 days

92 days




Sports brands






Sports wagers

   11,241

   12,573

(11%)

(6%)

(1%)

Sports margin

13.1%

9.7%




Sports NGR

     1,203

        894

35%

40%

54%

Gaming/other NGR

     1,077

        949

14%

18%

21%

Total NGR

     2,280

     1,843

24%

29%

37%







Games brands

        677

        554

22%

24%

18%

B2B & Non-core

          81

        118

(31%)

(30%)

4%







Group NGR

     3,038

     2,514

21%

25%

31%

Group NGR (€m)

     279.5

     231.3

21%

25%

31%

Sports Brands daily NGR grew 24% and on an underlying basis increased by 37%. The gross win margin in Q4 2017 was 13.1%, significantly ahead of the expected long-term average of 10%, with daily sports NGR up 35% and +54% on an underlying basis. The well above average gross win margin predictably reduced recycling, with wagers down 11% in the quarter. However, this was predominantly due to Turkey and wagers on an underlying basis were just 1% lower, a very pleasing performance. Despite the high gross win margin, Sports Brands gaming revenues rose 14% (+21% on an underlying basis), with the benefits of improved product and cross-sell continuing to be important factors.

Gaming Brands daily NGR increased 22% (+24% in constant currency) during the period, and on an underlying basis was +18%. All verticals put in a solid performance, with partypoker maintaining its impressive growth. B2B and non-core revenues grew by an underlying 4%, adjusting for Kalixa which was sold in the first half of 2017.

 

Kenneth Alexander (CEO) said:

"I'm delighted to report another strong year for the Group with underlying NGR growth of 18%, reflecting the strength of our brands, technology and the hard work of our talented people. We have once again demonstrated our ability to integrate significant acquisitions, realise material synergies and at the same time deliver top line growth. The recommended transaction with Ladbrokes Coral Group presents an exciting opportunity for both sets of shareholders, creating a global gaming group with a portfolio of strong brands across all major regulated online markets, together with proprietary technology and proven management."

 

1Excludes acquisitions and disposals undertaken in 2017

2Assumes bwin.party acquired 1 January 2016

3Clean EBITDA = earnings before interest, tax, depreciation, amortisation, share based payments and exceptional items

4Figures on a reported basis unless stated

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

- ends -

 

LEI: 213800GNI3K45LQR8L28

 

For further information:

GVC Holdings PLC


Kenneth Alexander, Chief Executive

Paul Miles, Chief Financial Officer

Nick Batram, Head of Investor Relations & Corporate Strategy

Tel: +44 (0) 1624 652 559   Tel: +44 (0) 20 3938 0079

Tel: +44 (0) 20 3938 0066

 

Media enquiries:

Buchanan Communications


David Rydell/Henry Harrison-Topham/Chris Lane

Tel: +44 (0) 20 7466 5066

 

About GVC Holdings PLC

GVC Holdings PLC is a leading e-gaming operator in both B2C and B2B markets.  GVC has four business segments with a number of brands; Sports Brands (bwin, Sportingbet, Gamebookers), Games Brands (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), B2B and non-core assets.  GVC acquired bwin.party digital entertainment plc on 1 February 2016.  The Group is headquartered in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 18 countries.

 

For more information see the Group's website: www.gvc-plc.com 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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