GVC Holdings PLC (LSE:GVC), a leading e-gaming operator in both B2C and B2B markets, is pleased to announce a trading update for the six month period ending 30 June 2016. Trading in Q2 has been strong with both GVC and bwin.party brands achieving double digit growth on a constant currency basis.
Following the positive performance reported in Q1, trading in Q2 has been strong with an acceleration in underlying NGR per day growth.
On a pro forma2 basis, NGR per day in Q2 was €2,456k, an increase of 11% on the corresponding period in 2015, with growth in constant currency of 16%. The Group benefited from an above average sports margin in the period, 9.9% against 7.9% in Q2-2015, with particularly favourable results during the first half of the UEFA Euro 2016 tournament in France. Furthermore, it was pleasing to note that pro forma2 sports wagers per day increased by 9% in constant currency over the same period in 2015. Gaming NGR per day also grew by 11% on the same basis, helped by improved cross-sell from sports and new casino content.
|Pro forma NGR per day in €000s||Q2-2016||Q2-2015||% change||% constant currency||H1-2016||H1-2015||% change||% constant currency|
|Sports margin %||9.9%||7.9%||9.1%||8.1%|
|Total NGR per day||2,456||2,205||11%||16%||2,413||2,251||7%||11%|
Total NGR on a reported basis3 for H1 2016 was €388m, an increase of 223% on the same period in 2015, boosted by the acquisition of bwin.party. On a pro forma1 basis, total NGR increased by 8% and by 11% on a constant currency basis.
1 Revenue is disclosed unaudited and before VAT which applies in certain EU markets
2 Revenue as if bwin.party digital entertainment plc had been acquired 1 January 2016
3 bwin.party consolidated from 1 February 2016
From an operational perspective, in the short to medium-term the GVC Board believes that UK referendum result to leave the EU will have little or no material impact on the Group. GVC is a diverse business, operating multiple brands and product verticals, with more than 90% of its customer base outside the UK. The Board is confident that this diversity gives the Group significant flexibility to face any potential long-term challenges that may arise from the UK's decision to leave the EU.
Kenneth Alexander, CEO said:
"I am pleased to report that in the first half of 2016 GVC has continued to deliver positive trading momentum. Q2 was particularly strong, helped by increasing volumes and favourable sports results during Euro 2016. The restructuring of the enlarged Group is progressing well with synergy targets being achieved, accompanied by strong underlying growth. We are very encouraged by the positive performance to date, however, it is still early days and there is much work to be done, nevertheless, the board remains confident for the remainder of 2016."
The Group intends to announce its interim results for the period 30 June 2016 on 20 September 2016.
This announcement contains inside information.
|GVC Holdings PLC|
|Kenneth Alexander, Chief Executive||Tel: +44 (0) 1624 652 559|
|Richard Cooper, Group Finance Director|
|Nick Batram, Head of Investor Relations & Corporate Strategy||Tel: +44 (0) 20 7337 0110|
|Cenkos Securities plc|
|Mark Connelly, Jeremy Osler, Camilla Hume||Tel: +44 (0) 20 7397 8900|
|David Rydell, James Newman, Anna Legge, Laura Jaques||Tel: +44 (0) 20 3772 2500|
About GVC Holdings PLC
GVC Holdings PLC is a leading e-gaming operator in both B2C and B2B markets. GVC has four main product verticals with a number of brands; Sports labels (bwin, Sportingbet, gamebookers), Gaming labels (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), Studios (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 and has licences in more than 15 countries.
For more information see the Group's website: www.gvc-plc.com