GVC Holdings positive on 2016 as all brands report revenue growth

Presenting its first London FTSE market update, GVC Holdings Plc described 2015 as a “momentous year for the company”, having completed its acquisition of bwin.party Entertainment assets in December 2015 (deal officially closed 1 February).

Reporting on full-year 2015 results (period ending 31 December), GVC recorded a 10% increase in Net Gaming Revenues (NGR) to €248 million.

GVC governance was pleased to announce its fifth consecutive year of NGR, which would see the operator post an EBITDA of €54 million up 10% on FY 2014’s corresponding €49 million.

As expected bwin.party acquisition costs would see the operator post a lower operating profit of €27.7 million, 35% down on FY 2014’s €43 million. GVC governance detailed that on a constant basis the operator would have posted a profits gain of circa 21% on 2014’s performance.

Updating the market on Q1 2016 results incorporating bwin.party assets, GVC detailed that total group NGR had reached €167 million, representing an 180% gain on 2015 metrics (€60 million).

GVC revealed that all core brands (GVC, Bwin and Party) had contributed to NGR growth in Q1 2016, a positive factor as the company looks to secure €125 million in co-synergies by the end of 2017.

Detailing 2016 outlook, GVC noted that the company had materially strengthened its senior management and governance teams adding former Playtech executives Liron Snir (CPO) and Shay Segev (COO) as group product and integration leads.

Kenneth Alexander Chief Executive of GVC Holdings, commenting on company performance

“GVC has had a momentous year. Not only has the Company seen a fifth consecutive year of revenue and clean EBITDA growth but the completion of the bwin.party acquisition in early 2016 affords us an opportunity to take the Group to the next level.”

“GVC has never been in a stronger position going forward. The enlarged Group is already enjoying encouraging trading, resulting from our unique mix of diversified products and strong brands. There is much work to be done, nevertheless, with GVC brands and bwin.party brands (including PartyPoker), growing, together with synergy benefits, we look forward with confidence to another successful year.”