Trading Update, Dividend Declaration

Clarissa Elsner

GVC Holdings PLC (AIM:GVC), a leading provider of services to the online gaming industry,today announces a trading update for the 12 months to 31 December 2013 along with the announcement of a third interim dividend increased to 11.5€cents per share payable on Monday 3rd February 2014 to shareholders on the register on 24 January 2014.

Revenues in the fourth quarter averaged €531k per day, 3% ahead of the third quarter. The Group thus expects to report clean EBITDA above the top-end of analysts’ current forecasts.

This third and increased dividend represents management’s confidence in the Group’s current trading and future prospects and brings the total of interim dividends paid in the 2013 financial year to 32.5€cents, (2012: 22.0€cents). GVC anticipates declaring a final dividend for the year ended 31 December 2013 along with the release of its Preliminary Results in the week beginning 7 April 2014.

Trading Per Quarter

Figures for each calendar quarter in the year are shown below:

Q1-2013Q2-2013Q3-2013Q4-2013TOTAL
Sports wagers in €millions170.5331.0304.7361.91,168.0
Sports margin12.5%9.2%9.8%8.4%9.6%
in €000’s
Sports NGR18,82524,70624,36422,97290,867
Gaming NGR16,66524,30523,09125,90789,968
35,49049,01147,45548,879180,835
Less: attributable to B2B partner*(12,166)(12,166)
NGR23,32449,01147,45548,879168,669
NGR per day374539516531495

*As already reported in the Interim Financial statements, a portion of the underlying revenues is attributable to the B2B partner, East Pioneer Corporation B.V. Following the acquisition of Sportingbet, Accounting Standards require GVC to fully consolidate this income and hence from 19 March 2013 the Consolidated Income Statement shows the gross revenues.

Successful Integration of Sportingbet
2013 has been a transformational year for GVC with the completion of the Sportingbet acquisition on the 19 March 2013, its successful integration, a reduction in the inherited cost base of around 50%, and a growth in its inherited revenues.

GVC has now completed all of its data migrations onto the one platform of Sportingbet, including that of Betboo.  In addition to this, GVC announces that as of today it has moved its principal gaming licence from Alderney to Malta where GVC has been established for many years and where its sports trading management is located.

An accounting consequence resulting from the Betboo migration will be that from 2014 and onwards there will no longer be a charge in the Consolidated Income Statement for the deferred discount release which hitherto has appeared as a Financial Expense.

The board looks forward to 2014 and proposes to provide trading updates as follows:

Preliminary results for 2013 and announcement of final
2013 dividend:w/c 7 April 2014
Trading update to accompany AGM:w/c 5 May 2014
First half update following world cup:w/c 7 July 2014
Interim results:w/c 22 September 2014
Trading update:w/c 8 December 2014

Kenneth Alexander, Chief Executive Officer of GVC Holdings plc, said: “The Board is pleased to be able to present excellent figures for 2013 and to continue to reward our shareholders with an increased dividend.

“The Sportingbet acquisition and our successful restructuring of that business has been transformational for GVC. The Board’s confidence in the future growth of the Group is demonstrated by our ongoing progressive dividend policy, and we look forward to providing a full update at the time of the Preliminary Results in April.”

 

For further information:

GVC Holdings PLC
Kenneth Alexander, Chief ExecutiveTel: +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 Shackletonwww.danielstewart.co.uk

Media enquiries:

Abchurch
Joanne Shears/ Olivia Stuart TaylorTel: +44 (0) 20 7398 7709
joanne.shears@abchurch-group.comwww.abchurch-group.com

 

About GVC Holdings PLC

GVC Holdings PLC is a leading provider of services to the online gaming industry.  Its core brands are now CasinoClub, Betboo and Sportingbet.  The Group has over 600 employees and is headquartered in the Isle of Man and is licensed in Malta, the UK, South Africa, Italy, Germany Denmark, Alderney and the Netherlands Antilles.

GVC is financially focused on generating cash and returning a high proportion of this to shareholders by way of dividends.  From 2007, GVC has declared over €92million or €2.648 (£2.17) per share via dividends to its shareholders.  Further information on the Group is available at www.gvc-plc.com