Trading update

Martin Sternsberger

GVC Holdings PLC (LSE:GVC), the multinational sports betting and gaming group, is pleased to announce Q3 KPIs for the period to 30 September 2017.

Key highlights Q3 2017 vs Q3 2016:

  • Group daily NGR up 10% (+13% constant currency)
  • Underlying1 daily NGR up 18% (+21% constant currency)
  • Sports Brands daily NGR up 11% (+14% constant currency)
  • Games Brands daily NGR up 15% (+17% in constant currency)
Q3 KPIs

Per day in €000’s

Q3-2017Q3-2016ChangeCC Change
92 days92 days
Sports brands
Sports wagers11,30811,2281%4%
Sports margin11.2%10.5%
Sports NGR9829513%7%
Gaming/other NGR98682819%22%
Total NGR1,9671,78011%14%
Games brands61253115%17%
B2B & Non-core6896(29%)(27%)
Group daily NGR2,6472,40710%13%
Group NGR (€m)243.5221.510%13%

The Group enjoyed another strong quarter with Group daily NGR +10% versus the same period last year and +13% in constant currency. This was particularly pleasing as the corresponding period last year was boosted by the final stages of the UEFA Euro 2016 tournament. Underlying1 NGR (which includes stripping out Euro 2016 and Kalixa – which was disposed of in May 2017) increased +18% and 21% in constant currency.

Within Sports Brands, the gross win margin for the period was 11.2% (10.5% Q3 2016), ahead of our expectations of the long-term sustainable average (c10%). Daily wagers were 4% ahead in constant currency, but as noted above, this was against a comparative period that included the Euro 2016 tournament – adjusting for this, underlying wager growth in constant currency was 8%. The strength of the underlying wager growth is a reflection of the success of the new bwin marketing campaign launched in August.

Games Brands daily NGR increased 15% (+17% in constant currency) over the same period last year. partypoker NGR grew 48% year on year, continuing to benefit from product improvement and increased marketing investment. Casino brands NGR also grew in Q3, whilst bingo returned to underlying growth during the period. The decline in B2B and non-core reflects the disposal of Kalixa in May 2017.

The Group has also enjoyed a strong start to Q4, albeit it is just over a week into the period.

Kenneth Alexander (CEO) said:

“Underlying1 growth in Q3 represents the highest rate achieved since the acquisition of bwin.party in February 2016. The quick wins made in 2016 have been supplemented by further and continuous improvements across all areas of the business. GVC operates in an industry with significant opportunities and challenges. The combination of our talented employees, proven technology and strong brands, gives me confidence that we can continue to drive shareholder value.”

 

1 Includes stripping out Euro 2016 and Kalixa (disposed of in May 2017).

“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.”

 

For further information:

GVC Holdings PLC
Kenneth Alexander, Chief ExecutiveTel: +44 (0) 1624 652 559
Paul Miles, Chief Financial OfficerTel: +44 (0) 20 3938 0079
Nick Batram, Head of Investor Relations & Corporate StrategyTel: +44 (0) 20 3938 0066
Media enquiries:
Jay DossetterTel: +44 (0) 20 398 0173
David Rydell, Buchanan CommunicationsTel: +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