GVC releases H1-2016 trading update

The UK online gambling group GVC Holdings released a trading update on its H1-2016 performance Wednesday, reporting that it has maintained positive momentum, particularly in the second quarter, and flagging the following highlights:

* Q2-2016 NGR per day at Euro 2,456k, grew year-on-year by 11 percent compared to Q2-2015 on a pro forma basis, and by 16 percent on a constant currency basis;

* GVC brands grew quarterly by 24 percent and Bwin.Party brands grew y-o-y by 12 percent pro forma on a constant currency basis;

* H1 2016 NGR per day grew by 7 percent on a pro forma basis, and 11 percent in constant currency;

* Over the half-year GVC brands grew by 15 percent and Bwin.Party brands grew by 9 percent pro forma year-on-year on a constant currency basis;

* H1-2016 total pro forma NGR was Euro 439 million, up 8 percent (H1-2015: Euro 407 million);

* H1 2016 NGR on a reported basis was Euro 388 million, up 223 percent (H1-2015: Euro 120 million);

Operational highlights in H1-2016 included:

* Achievement of a premium listing on the London Stock Exchange w.e.f. August 1st (see previous report);

* On 23 May the group announced the signing of a 10-year business-to-business licensing deal with Betfred, one of the UK’s best known sports betting brands, augmenting existing B2B contracts already developed;

* On 9 June, the Group’s existing licence in New Jersey was confirmed by the New Jersey Division of Gaming Enforcement;

* Following the acquisition of Bwin.Party on 1 February 2016, the integration of the enlarged group is progressing in line with expectations and remains on track to secure Euro 125 million of synergies by the end of 2017.

* The group benefited from an above average sports margin in the period, 9.9 percent against 7.9 percent in Q2-2015, with particularly favourable results during the first half of the UEFA Euro 2016 tournament in France. Sports wagers per day increased by 9 percent in constant currency over the same period in 2015;

* The company believes that Brexit will have little impact on operational performance in the short to medium term, and points out that the group has a diverse business, operating multiple brands and product verticals, with more than 90 percent of its customer base outside the UK;

Reporting on the half-year, CEO Kenneth Alexander said:

“In the first half of 2016 GVC has continued to deliver positive trading momentum. Q2 was particularly strong, helped by increasing volumes and favourable sports results during Euro 2016. The restructuring of the enlarged Group is progressing well with synergy targets being achieved, accompanied by strong underlying growth. We are very encouraged by the positive performance to date, however, it is still early days and there is much work to be done, nevertheless, the board remains confident for the remainder of 2016.”

The Group intends to announce its interim results for the period 30 June 2016 on 20 September 2016.