FTSE100 gambling group GVC Holdings reports an ‘excellent start to the year’, publishing its pro-forma trading update for Q1 2019 (period ending 31-March), as the company now enters a crucial adjustment period for all UK gambling incumbents.
Updating the market, GVC governance reports a strong volume of growth across all major territories, driven by the firm’s online gambling assets, as GVC reports an 8% group net-revenue increase.
Publishing a snapshot of its performance, the FTSE operator reports a 16% NGR increase in sports betting, led by a 19% increase in sports wagers.
Online growth is further supported by the strong performance of its gaming division recording an NGR increase of 20%.
Reporting on its UK retail assets, GVC Holdings records flat wagering and NGR across its estates, whilst the firm’s European retail division reports a 2% NGR increase.
Updating the market, GVC Holdings Group CEO Kenneth Alexander (CEO) said:
“This trading update reflects a continuation of the strong trends reported on 5 March 2019, and represents an excellent start to the year. We continue to see good volume growth across all major online brands and territories and we remain very confident of achieving our target of double-digit online NGR growth. The impact of soft gross win margins in Italy and the UK was offset by improved margins in other territories, demonstrating the benefit of both geographic and product diversification across the Group.
“In UK Retail and European Retail, improved sports wagering growth helped offset softer sports gross win margins. New B2 machines stakes restrictions were implemented in the UK on 1 April 2019 and we expect it to be several weeks before we can start to assess the impact. At this early stage of the year, the Board is confident of delivering EBITDA and operating profit in-line with expectations”