GVC posts FY 2012 results and trading update

Online gambling group and b2b services provider GVC Holdings plc posted preliminary results for the full year ended December 31 2012 on Tuesday, along with a trading update.

Highlights of the year included:

* Acquisition of Sportingbet plc completed on 19 March 2013

* Total revenues for 2012 up 34 percent to Euro 59.6 million (2011: Euro 44.3 million)

* 2012 Clean EBITDA rose by 84 percent to Euro 15.5 million (2011: Euro 8.4 million)

* 30 percent increase in dividend in the year: 11Euro cents paid in May 2012 (May 2011: 10 Euro cents) and 15 Euro cents paid in November 2012 (November 2011: 10 Euro cents)
* In its first full year of operation, the B2B division produced a clean EBITDA (being EBITDA of Euro 7.3 million; Betboo’s revenues increased 17 percent to Euro 10.3 million; and the clean EBITDA from CasinoClub remained level at Euro 9.6 million on an increased contribution of Euro 16.3 million (2011: Euro15.5 million).

Management says that it achieved all four operational aims in the reporting period:

* Build revenues and profits from B2B operations
* Achieve a step-change in Latin American revenue growth
* Stabilise profits from CasinoClub
* Position GVC as an acquirer of businesses within the sector

The company additionally issued a trading update for the 83 day period to 24 March 2013,  showcasing:

* 27 percent increase in average pro forma daily revenues to Euro 348,000 (2012: Euro 273,000)
* 34 percent increase in B2B pro forma daily revenues to Euro 230,000 (2012: Euro 171,000)
* 15 percent increase in B2C daily revenues to Euro 118,000 (2012: Euro 102,000)

Commenting on the results, CEO Kenneth Alexander said: “The Board is pleased to report that not only was 2012 another period of increased financial performance and returns for shareholders, but that on 19 March 2013 we completed the most significant deal in the Group’s history.  The acquisition of Sportingbet enhances our current market position and provides potential for considerable growth, as well as laying the foundations for future transactions.

“The Group met all of its key operational objectives during the period and has seen a significant increase in revenues in the B2B division in its first full year of operation.  Betboo’s revenues increased by 17 percent to Euro 10.3 million and the profitability of CasinoClub was maintained as planned.”

Lee Feldman, chairman of the company, said the Sportinbet deal was transformational for the Group, and noted that the resulting revenue in the first two months of 2013 would have amounted to Euro 6.4 million, an annual “run-rate” in excess of Euro 38 million.

Feldman revealed that GVC has reached an amicable settlement in its long-running and at time bitter litigation against Boss Media . This has resulted in a credit to the income statement of the Group as an exceptional item.

Net Gaming Revenues by operation showed:

B2B operations Euro 21.2 million (2011: Euro 6.1 million)
CasinoClub Euro 28.1 million (2011: Euro 29.4 million)
Betboo Euro 10.3 million (2011: Euro 8.8 million)

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