GVC expects top profits following strong 2017 finish

FTSE online gambling group GVC Holdings has this morning informed investors that it expects its full-year corporate earnings to be at the top end of management expectations having finished 2017 trading strongly.

Issuing its Q4 2017 trading update (period ending 31 December), GVC reports daily group net gaming revenues of €2.2 million up 24% on corresponding Q4 2016 daily NGR of €1.8 million.

GVC highlighted the strong performance for its sports betting brands, which would generate €1.2 million in daily NGR, aided by a strong period gross win margin of 13%., which would help the operator overcome the closure of its Turkish betting division.

Closing its Q4 trading, GVC reports a group period NGR of €279 million, a record since the acquisition of bwin.party in February 2016. Q4 underlying NGR growth +31% representing the firm’s strongest quarter performance to date.

Performance Overview – GVC Q4 2017 Trading Update

 

As a result of its positive Q4 trading, GVC governance expects to deliver a full year 2017 group NGR €1 billion, combined with a group EBITDA at the top end of expectations.

Updating investors GVC Holdings CEO Kenneth Alexander commented on Q4 2017 trading: “I’m delighted to report another strong year for the Group with underlying NGR growth of 18%, reflecting the strength of our brands, technology and the hard work of our talented people. We have once again demonstrated our ability to integrate significant acquisitions, realise material synergies and at the same time deliver top-line growth”

GVC governance currently awaits the final shareholder decision of its proposed £4 billion takeover bid of Ladbrokes Coral Plc, seeking to create a new FTSE multi-channel, multi-market gambling group.

“The recommended transaction with Ladbrokes Coral Group presents an exciting opportunity for both sets of shareholders, creating a global gaming group with a portfolio of strong brands across all major regulated online markets, together with proprietary technology and proven management.” Alexander detailed on the Ladbrokes Coral bid.

GVC governance is expected to present its full-year 2017 results and earnings on 24 March 2018.