Trading update

Clarissa Elsner

GVC Holdings PLC (LSE:GVC), the multinational sports betting and gaming group, is pleased to announce a trading update for the six months to 30 June 2017, together with Q2 KPIs.

Key highlights:

  • H1 2017 Group daily NGR up 10% (+12% constant currency) vs pro forma1 H1 2016
  • H1 2017 NGR €484.8m up 10% vs H1 2016 pro forma1 €441.8m (+11% in constant currency)
  • Q2 2017 Group daily NGR up 8% (+10% in constant currency) vs Q2 2016
  • Q2 2017 underlying Group daily NGR up 15% vs Q2 2016 (excluding Euro 2016 revenues)
  • Kalixa disposal completed
  • Trading in line with management expectations

 

Q2-2017Q2-2016ChangeConstantH1-2017H1-2016ChangeConstant
in €000s91 days91 dayscurrency181 days182 dayscurrency
Sports Brands
Sports wagers12,11312,394(2%)(0%)12,50912,630(1%)1%
Sports margin10.1%9.9%9.8%9.2%
Sports NGR945952(1%)1%9478985%7%
Gaming / other1,03089016%18%1,01586417%19%
Total NGR per day1,9761,8437%9%1,9621,76211%13%
Games Brands61654713%15%6165698%10%
B2B & Non-core9096(5%)(4%)100974%7%
Group NGR per day2,6822,4858%10%2,6782,42810%12%
Group NGR €m244.1226.28%10%484.8441.810%11%

 

Q2 KPIs

The Group enjoyed another strong quarter with daily NGR +8% on the same period last year and +10% in constant currency. This was achieved despite the absence of a major football tournament, reflecting continued good momentum across the business. Excluding Euro 2016 revenues, daily Group wagers and NGR were +10% and +15% respectively versus Q2 2016.

Within Sports Brands, the gross win margin for the period was 10.1% (9.9% Q2 2016), in line with our expectations of the long-term sustainable average. Daily wagers were broadly flat 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 was 10%. Gaming daily NGR from Sports Brands continued to benefit from improved product and CRM, increasing +16% (+18% constant currency) on Q2 2016.

Games Brands daily NGR increased 13% (+15% in constant currency) over the same period last year, the highest quarterly growth reported by the division since the acquisition of bwin.party in February 2016. Growth is being driven by partypoker and an improving performance from the Group’s standalone casino brands.

H1 2017

Group NGR for the first six months rose 10% to €484.8m (+11% in constant currency) versus pro forma1 2016. The disposal of Kalixa was completed 31 May 2017 and during the first half contributed revenues of €6.1m against €7.6m for pro forma H1 2016.

Kenneth Alexander (CEO) said:

The Group continues to perform well with positive momentum across our core businesses. Achieving Q2 constant currency NGR growth of 10% in the absence of a major football tournament is particularly pleasing. As demonstrated at our recent Capital Markets Day, the organic opportunity is significant, whilst we are also well positioned to pursue further acquisition opportunities should they arise. This combined with an increase in marketing investment in the second half to more normalised levels gives the Board confidence of GVC delivering another year of strong progress.”

 

1 Assumes bwin.party acquired 1 January 2016

 

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 Executive
Paul Miles, Chief Financial Officer
Nick Batram, Head of Investor Relations & Corporate Strategy
Tel: +44 (0) 1624 652 559
Tel: +44 (0) 20 7337 0100
Tel: +44 (0) 20 7337 0110
Media enquiries:
Bell Pottinger
David Rydell, 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 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