Trading Update

Clarissa Elsner

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 MayYear to
2012201131-Dec-11
B2C105.298.4104.7
B2B174.15.827.6
279.4104.2132.3
B2C
Betboo
Sports wagers115.445.867.0
Sports Margin8.55.97.2
Sports margin %7.3%12.8%10.8%
Sports NGR5.74.26.0
Gaming NGR21.016.118.1
26.720.324.1
CasinoClub78.578.080.5
TOTAL B2C105.298.4104.7

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 MayYear to
2012201131-Dec-11
B2B
Sports wagers1,377.073.0226.1
Sports Margin160.04.924.0
Sports margin %11.6%6.7%10.6%
Sports NGR136.43.317.9
Gaming NGR37.72.59.7
174.15.827.6

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
20112011201120112010201020102010
OriginalBetalandEPCRestatedOriginalBetalandEPCRestated
€000’s€000’s€000’s€000’s€000’s€000’s€000’s€000’s
– B2B6,1283,94410,072
– B2C58,218(20,006)38,21254,907(22,278)32,629
Turnover64,346(20,006)3,94448,28454,907(22,278)32,629
Contribution24,709(4,159)20,55023,329(4,205)19,124
Expenditure(14,691)2,523(12,168)(11,165)2,266(8,899)
Clean EBITDA10,018(1,636)8,38212,164(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 tax116(1,403)(1,287)4,078(1,553)2,525
Sports stakes
B2B44,45338,08282,535
B2C76,279(51,840)24,43969,313(55,934)13,379
120,732(51,840)38,082106,97469,313(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

 

For further information:

GVC Holdings PLC
Kenneth Alexander, Chief Executive OfficerTel: +44 (0) 20 7398 7702
Richard Cooper, Group Finance Directorwww.gvc-plc.com
Daniel Stewart & Company PlcTel: +44 (0) 20 7776 6550
David Hart / Paul Shackleton / Jamie Barklemwww.danielstewart.co.uk

Media enquiries:

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