KPI Update & Notice of Interi

RNS Number : 7233P

GVC Holdings PLC

22 July 2010

 



Press Release

22 July 2010

GVC Holdings PLC

("GVC" or the "Group")

KPI update

Notice of Interim Results

GVC Holdings PLC (AIM:GVC), a leading online gaming company,gives the following update for the first six months to 30 June 2010 and announces it will release its interim accounts on Tuesday 28 September 2010. 

KPI update

Overall, trading has been in line with expectations.  Net Gaming Revenue ("NGR") for H1-2010 was €28.5 million, up 8% on H1-2009 (€26.5 million) and up 4% on H2-2009 (€27.5 million).  The Group ceased operating its loss-making Spanish focused bingo brand, Winzingo, in April 2010 and now has three core brands: CasinoClub, Betaland, and Betboo.

The net gaming revenues from these brands were as follows:

	CasinoClub	Betaland	Betboo	Winzingo	Total
Gaming	13.7	7.4	2.4	0.3	23.8
Sports	-	4.8	(0.1)	-	4.7
Total H1-2010	13.7	12.2	2.3	0.3	28.5
H1-2009
Gaming	15.1	6.0	-	0.5	21.6
Sports	-	4.9	-	-	4.9
Total	15.1	10.9	-	0.5	26.5
H2-2009
Gaming	14.6	5.7	2.0	0.8	23.1
Sports	-	4.2	0.2	-	4.4
Total	14.6	9.9	2.2	0.8	27.5

Revenue per day in €000's	CasinoClub	Betaland	Betboo	Winzingo	Total
H1-2010	75.7	67.4	12.8	2.0	157.9
H2-2009	79.2	53.9	12.0	4.2	149.3
H1-2009	83.2	60.2	-	3.0	146.4

Sports Trading

The overall gross win margin was 12.8%. The Betaland margin was 16.1%, but there was a small trading loss from Betboo due to some disappointing sports trading results during the Brazilian soccer season.  Total stakes amounted to €38.9 million, up 38% on H1-2009 (€28.2 million) and up 59% on H2-2009 (€24.5 million).

CasinoClub

Fierce competition together with a weak economic climate in Europe has inevitably led to a further decline in our core German-facing, roulette-dominated casino business.  Revenues per day fell to €75.7k from €83.2k in H1-2009 and €79.2k in H2-2009.

As previously announced, the Group has invested in both retention and acquisition marketing to defend its highly profitable CasinoClub business.  Around €2.8 million was incurred in the H1-10 compared to around €1.5 million in H1-09.  The inevitable consequence of this is that contribution margin from CasinoClub is expected to be closer to 60% rather than 70% in H1-2009.

Both the number of average customers per day and the number of active customers per month grew over both H1-2009 and H2-2009 reflecting this additional marketing expenditure.  However, the average expenditure from customers continues to decrease.

Betaland

The sportsbook continued to grow strongly, seeing an 18% increase in the number of bets to 2.7 million, a 10% increase in the number of customers to an average of 9,700 per month (H1-2009: 8,900), although the average bet size fell from €13.7 to €11.4 reflecting the more recreational nature of players recruited. 

Gaming revenues performed strongly and rose 22% to €7.1 million (H1-2009 €6.0 million; H2-2009 €5.7 million).

Betboo

The first year of ownership of Betboo has been successful and the Board remains confident about its long-term prospects in the rapidly developing South American economy.

The sportsbook has seen material growth, and a strengthening of the trading team is expected to result in improved margins.

Gaming revenues are largely bingo-driven and have increased from around €10k per day in January 2010 to around €20k per day in the first 19 days of July 2010, whilst the average over the six month period was €13k.

Betboo is anticipated to be the brand to be used for the launch of the new European Sportsbook, which is expected to be live in early Q4-2010.

Boss Media

Court proceedings in Malta are scheduled for 4 October 2010.  The Board will continue to vigorously defend the Group's intellectual property and continues to pursue a number of claims against Boss Media.

Trading since half year end

GVC has benefited from the FIFA World Cup and sports revenues in the first 19 days of July 2010 totaled €0.5 million, representing a 20% hold.  Total average daily revenues for the first 19 days of July 2010 were €27k from sports and €122k from Gaming, a total of €149k per day, an increase of 30% compared with €115k per day for July 2009.

Cash position

After the payment of the special dividend on 28 June 2010, and approximately €1 million of costs associated with the re-domiciliation and re-admission to AIM, the Group's cash position at Friday 16 July 2010 was €4.5 million, equivalent to €0.145 per share.

Date of interim results

The Group expects to release its interim accounts on Tuesday 28 September 2010, along with a trading update at that time.

- Ends -

For further information:

GVC Holdings PLC
Kenneth Alexander, Chief Executive Officer	Tel: [phone]
Richard Cooper, Group Finance Director	www.gamingvc.com

Arbuthnot Securities Limited	Tel: [phone]
James Steel / Ed Gay

Media enquiries:

Abchurch
Henry Harrison-Topham / Nick Probert	Tel: [phone]
[e-mail]	www.abchurch-group.com

About GVC Holdings PLC

GVC Holdings is a leading online gaming company.  The Group is headquartered in the Isle of Man and is licensed in Malta, and the Netherlands Antilles.

GVC's management team has a wealth of experience in the gaming industry and has a significant track record in successfully identifying and penetrating new markets.  The Group is focused on delivering an innovative product offering and is dedicated to providing sophisticated Customer Relationship Management (CRM) to ensure high levels of customer satisfaction.

GVC uses Internet marketing and affiliate networks for customer acquisition and customer retention purposes.

In December 2004, the shares of Gaming VC Holdings S.A., GVC's predecessor company, were admitted to the AIM market of the London Stock Exchange.  The GVC Group has not and has never transacted wagering activity by players in the US.  Further information on the Group is available at www.gamingvc.com.

 

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