Good half-year for GVC online gambling group

Online gambling group GVC Holdings plc has posted its H1-2013 results for the six months ended 30 June 2013, along with a trading update to 22 September 2013:

Highlights for the half year included:

• Revenues increased by 144 poercent to Euro 72.3 million (H1 2012: Euro 29.6 million)
• Clean EBITDA rose by 132 percent to Euro 17.8 million (H1 2012: Euro 7.7 million)
• Restructure of Sportingbet acquisition nearing completion and now profitable
• Like–for-like revenues in H1-2013, 8.5 percent higher than H1-2012
• EBITDA for full year set to be ahead of current market expectations

Trading update highlights for the 84 day period to 22 September 2013:

• Group revenues up 249 percent to Euro 516,000 per day (Q3-2012: Euro 148,000 p.d.)
• Like-for-like revenues in Q3 up 3.4 percent on 2012 despite a significantly stronger Euro
• Sports margin percentage across all products 9.7 percent in Q3 2013 (Q3 2012: 9.1 percent)

Sportingbet plc was acquired on 19 March 2013 . Under a court approved Scheme of Arrangement, it excluded the Australian business of Sportingbet, which was acquired by William Hill. References to Sportingbet in the GVC report exclude Australia.

Commenting on the results, Kenneth Alexander, chief executive of GVC Holdings plc, said:

“The Board is pleased to report another period of solid growth, increased profitability and a further dividend for our shareholders.

“In the first half of 2013, we completed our acquisition of Sportingbet and have since been working hard to turn around this business and integrate it into the group. The execution of our strategic plan to restructure and return this business to profitability is near completion and has gone far better than expected.

“Under GVC´s leadership, revenues in the Sportingbet business have increased and by the end of 2013 the Board expects that the inherited cost base will have already been reduced by around 50 percent. The balance sheet has been completely repaired, the cash burn stopped and this business is now profitable.

“As a result, we are pleased to be able announce today our third dividend of 2013, of 10.5  Euro cents, which means that the group will have paid a total dividend of 28 Euro cents per share to shareholders in 2013.”

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