GVC reports rise in 2017 net gaming revenues

Business News

GVC Holdings reported Friday a pre-tax loss of €25.6m in the year to December 31, a significant improvement on the €173.5m loss in the previous year. 

The loss was mainly due to costs related to its purchase of Bwin, which was completed in 2016.

For 2017, GVC said that net gaming revenue (NGR) – the amount gained in stakes minus payouts – rose 17% on a constant currency basis to €925.6m from €794.3m.

Gaming NGR from sports customers increase by 20% to €663.8m, games brands NGR rose 12% to €228.7m, or 14% on a constant currency basis, while B2B NGR was £16.5m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 33% to €274.2m.

GVC announced a second interim dividend of 17.5 euro cents, giving a total 2017 dividend of 34.0 cents for the period, up 13% on the dividends of 30 cents in 2016.

GVC said it made a strong start to 2018 with like-for-like NGR up 16% for the period up to 4 March 2018. The board’s expectations for the full year remain unchanged.

Kenneth Alexander (CEO) said: ‘GVC achieved a significant amount in 2017 and as these numbers demonstrate, we have delivered material value from the bwin.party acquisition. It is particularly pleasing that we have been able to produce such strong results at the same time as completing the integration of bwin.party and continuing to enhance our product offering.

‘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. The importance of geographic diversification is also a key dynamic given the evolving regulatory backdrop.’

‘Thus the acquisition of Ladbrokes Coral Group represents an exciting opportunity, bringing together industry leading online and retail brands. There will be plenty of hard work ahead, but we are confident that GVC will deliver once again.’