GVC Holdings posts 2016 results

Online gambling group GVC Holdings plc announced its preliminary results for the year ended 31 December 2015 Thursday, reporting a pre-tax loss of Euro 138.6 million, compared with a Euro 25.5 million profit the previous year, on revenue up to Euro 823.3 million from Euro 246.5 million. The company flagged the following highlights:

Financial highlights

* Pro forma Net Gaming Revenue up 9 percent to Euro 894.6 million (up 12 percent in constant currency);
* Pro forma Clean EBITDA up 26 percent to Euro 205.7 million;
* Adjusted Profit Before Tax Euro 93.8 million (FY 2015: Euro 46.4 million);
* Second special dividend Euro 15.1c, giving total Euro 30c dividends declared for FY 2016;
* Net debt Euro 131.5 million;
* Long-term refinancing secured with oversubscribed institutional debt issue;

Operational highlights

* Successful integration of bwin.party;
* Improved platform stability and significantly improved product offering;
* Sports Labels pro forma NGR up 14 percent (+16 percent in constant currency);
* Improved sports win margin to 9.6 percent (2015: 8.6 percent);
* Pro forma gaming NGR from the acquired bwin sports labels up 26 percent, while value of first time deposits up 37 percent;
* Games Labels pro forma NGR down 4 percent (flat in constant currency), H2 pro forma NGR up 4 percent in constant currency;
* On target to achieve Euro 125 million synergy run rate at end of 2017;
* 95 percent of group revenues now derived/processed through the group’s proprietary platform;

Current trading

* Pro forma daily NGR up 15 percent (up 16 percent constant currency) in Q1-2017;
* Pro forma daily Sports Labels NGR up 18 percent (up 19 percent constant currency);
* Pro forma daily Games Labels NGR up 6 percent (up 8 percent in constant currency).

Kenneth Alexander, CEO, reported:

“The acquisition of bwin.party in February 2016 was our most ambitious transaction to date, and through the hard work of our people we have once again demonstrated our ability to create significant shareholder value through selected acquisitions. Our strategy of pursuing international diversification and scale through leveraging our proprietary technology, is more appropriate today than at any time in our history. The organic growth opportunity is equally exciting and we are confident of delivering further growth in 2017.”

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