Strong sports betting performance sees GVC Holdings profit double

Kenneth Alexander – GVC Holdings CEO

Multinational gaming group – GVC Holdings, operators of igaming brands – Betboo, Casino Club and Sportingbet posted a strong 2013 performance. The company issued its audited results for its 2013 financial performance.

2013 highlights, saw the company post an increase in total revenues of 69% to €180.6 million (2012: €107.1 million). Revenue performance was further supported by a 148% year on year increase on clean EBITDA of €38.3 million.

GVC Holdings performance saw the company declare a total dividend of 48.5€cents, an increase of 120% on 2012 dividends (22.0€cents).

The company pinpointed strong 2013 sports betting performance as a key driver for its results. The Groups sports betting brands contributed €1.2 billon in sports wagers. GVC Holdings managed to maintain a 9.5% operating margin on its sports betting operations.

2013 saw GVC Holdings had successfully undertaken the purchase and integration of Sportingbets, UK and regulated market operations Sports betting handle rose 125% in 2013 to €1.17b, of which €662m came via Sportingbet. Sports betting accounted for 52% of GVC’s overall revenue,

Kenneth Alexander, Chief Executive of GVC Holdings plc, commented on 2013 figures: “Executing the complex acquisition and turnaround of Sportingbet has been a milestone for GVC and has led to greater geographical diversification and a significant increase in profits and dividends. We are now ready for the next stage in our corporate development and further geographic expansion through organic growth and acquisitions. GVC aims to deliver this without diluting the dividend. The Board is confident of meeting current market expectations for the 2014 financial year as underpinned by our proposed dividend of 16 €cents total.”

Breakdown of GVC Holdings 2013 Results

  • Total Proforma Revenues* increased by 69% to €180.6 million (2012: €107.1 million)
  • Clean EBITDA** rose year-on-year by 148% to €38.3 million, ahead of upgraded market expectations
  • Sportingbet turnaround complete and contributed €4.7 million to 2013 EBITDA
  • EPS (normalised and non-diluted) rose 83% to 58.6 €cents (2012: 32.1 €cents)
  • Quarterly dividend – 11.5 €cents declared plus a special dividend of 4.5 €cents also declared
  • Total dividends declared for 2013 up 120% to 48.5 €cents (2012: 22.0 €cents)
  • Current trading at record levels, NGR exceeded €50 million for Q1 (Q1 2013: €35.6 million)
  • Complex acquisition capabilities proven and GVC looking at a variety of further opportunities

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