Preliminary Results and Q1 2011 Trading Update

Clarissa Elsner

GVC Holdings PLC (AIM:GVC), a leading online gaming company, today announces its Preliminary Results for the year ended 31 December 2010 and Q1 Trading Update.

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The results are available to download in PDF format.

Highlights

  • Net Gaming Revenue (“NGR”) increased by 5% to €54.9m (2009 €52.1m)
  • Clean EBITDA of €12.2m (2009: €17.7m) following planned market investment of €4.8m and start up costs of €0.7m
  • Final dividend of 10 €cents per share proposed on top of interim dividend of 10 €cents per share and last year’s special dividend of 50 €cents per share
  • Planned investments and cost associated with the re-domiciliation and Boss Media legal fees, led to a reduced profit before tax of €4.1m (2009: €14.0m)
  • Basic earnings per share of €0.111 (2009: €0.432)

Operational Highlights

  • Significant marketing investment in the CasinoClub brand
  • FIFA World Cup, benefitting both Betaland and Betboo
  • Planned expenditure incurred in preparing the Betboo brand for new markets

Q1 2011 Highlights

  • Record average daily NGR of €172k (Q1 2010: €157k, Q4 2010: €146k)
  • CasinoClub average daily NGR of €83k (Q1 2010: €79k, Q4 2010: €82k)
  • Total sports wagers averaging €251k per day (Q1 2010: €212k, Q4 2010: €190k)
  • Sportsbook for emerging markets live on 5 January 2011, encouraging trading seen already with sports stake for March 2011 averaging €64k per day

Commenting on the results, Kenneth Alexander, Chief Executive of GVC Holdings plc, said: “The Board has been encouraged by the improved conditions in the markets in which the Group operates and the Group has made a positive start to 2011.

“Betboo in Latin America and in Emerging Markets has performed more strongly than expected, and the re-structuring of the earn-out should encourage further growth and allow greater investment in Latin America. The building of the Betboo brand outside Latin America will continue in 2011 and the Board expects that this will move into profitability in H2 2012.  Our marketing investments in CasinoClub will also continue throughout 2011.

“The regulatory landscape has seen a number of changes during 2010, few of which have had an impact on GVC’s core business.  The Interstate Treaty in Germany expires at the end of the year and discussions amongst the German Länder have been taking place in 2011.  It is too early to predict the outcome of these discussions.

“The Group remains cautiously optimistic for the forthcoming financial year.”

For further information:

GVC Holdings PLC
Kenneth Alexander, Chief ExecutiveTel: +44 (0) 20 7398 7702
Richard Cooper, Group Finance Directorwww.gamingvc.com
Arbuthnot Securities Limited (Nominated Adviser)
James Steel / Ed GayTel: +44 (0) 20 7012 2000

 

Media enquiries:

Abchurch
Henry Harrison-Topham / Mark DixonTel: +44 (0) 20 7398 7702
henry.ht@abchurch-group.comwww.abchurch-group.com

 

About GVC Holdings PLC

GVC Holdings PLC is a leading online gaming company.  The Group is headquartered in the Isle of Man and is licensed in Malta, and the Netherlands Antilles.

In December 2004, the shares of Gaming VC Holdings S.A., GVC’s predecessor company, were admitted to the AIM market of the London Stock Exchange.  The GVC Group has not and has never transacted wagering activity by players in the US.  Further information on the Group is available at www.gamingvc.com