Trading Statement

RNS Number : 0064E

GVC Holdings PLC

13 July 2016

 

GVC Holdings PLC

 ("GVC" or the "Company" or the "Group")

Trading statement

GVC Holdings PLC (LSE:GVC), a leading e-gaming operator in both B2C and B2B markets, is pleased to announce a trading update for the six month period ending 30 June 2016. Trading in Q2 has been strong with both GVC and bwin.party brands achieving double digit growth on a constant currency basis.

Financial highlights¹

·	Q2-2016 NGR per day grew by 11% compared to Q2-2015 on a pro forma2 basis, and grew by 16% on a constant currency basis
·	In Q2-2016, GVC brands grew by 24% and bwin.party brands grew by 12% pro forma2 year on year on a constant currency basis
·	In H1 2016, NGR per day grew by 7% on a pro forma2 basis, and 11% in constant currency
·	In H1-2016, GVC brands grew by 15% and bwin.party brands grew by 9% pro forma2 year on year on a constant currency basis
·	H1-2016 total pro forma2 NGR was €439 million, up 8% (H1-2015: €407 million)
·	H1 2016 NGR on a reported basis3 was €388 million up 223% (H1-2015: €120 million)

Operational highlights

·	Premium Listing: On 1 July, the Group notified the proposed transfer of all of its ordinary shares from the Standard segment of the Official List to the Premium segment ("Premium Listing"). It is anticipated that the Premium Listing will take effect from 08:00 AM on 1 August 2016
·	B2B expansion: On 23 May the Group announced the signing of a 10-year B2B licensing deal with Betfred, one of the UK's best known sports betting brands. This augments the existing B2B contracts which the Group has already developed
·	New Jersey Licence: On 9 June, the Group's existing licence in New Jersey was confirmed by the New Jersey Division of Gaming Enforcement
·	Integration update: Following the acquisition of bwin.party on 1 February 2016, the Board confirms the integration of the enlarged Group is progressing in line with expectations and remains on track to secure €125 million of synergies (as per November 2015 prospectus) by the end of 2017

Quarter 2

Following the positive performance reported in Q1, trading in Q2 has been strong with an acceleration in underlying NGR per day growth.

On a pro forma² basis, NGR per day in Q2 was €2,456k, an increase of 11% on the corresponding period in 2015, with growth in constant currency of 16%. The Group benefited from an above average sports margin in the period, 9.9% against 7.9% in Q2-2015, with particularly favourable results during the first half of the UEFA Euro 2016 tournament in France. Furthermore, it was pleasing to note that pro forma² sports wagers per day increased by 9% in constant currency over the same period in 2015. Gaming NGR per day also grew by 11% on the same basis, helped by improved cross-sell from sports and new casino content.

Pro forma NGR per day in €000s	Q2-2016	Q2-2015	% change	% constant currency	H1-2016	H1-2015	% change	% constant currency
Sports wagers	12,552	11,943	5%	9%	12,805	12,364	4%	7%
Sports margin %	9.9%	7.9%			9.1%	8.1%
Sports NGR	972	779	25%	29%	914	833	10%	14%
Gaming NGR	1,306	1,215	8%	11%	1,301	1,217	7%	10%
Other revenue	178	211	-16%	-14%	199	200	-1%	-1%
Total NGR per day	2,456	2,205	11%	16%	2,413	2,251	7%	11%

Total NGR on a reported basis³ for H1 2016 was €388m, an increase of 223% on the same period in 2015, boosted by the acquisition of bwin.party. On a pro forma¹ basis, total NGR increased by 8% and by 11% on a constant currency basis.

1 Revenue is disclosed unaudited and before VAT which applies in certain EU markets

2 Revenue as if bwin.party digital entertainment plc had been acquired 1 January 2016

3 bwin.party consolidated from 1 February 2016

EU referendum

From an operational perspective, in the short to medium-term the GVC Board believes that UK referendum result to leave the EU will have little or no material impact on the Group. GVC is a diverse business, operating multiple brands and product verticals, with more than 90% of its customer base outside the UK. The Board is confident that this diversity gives the Group significant flexibility to face any potential long-term challenges that may arise from the UK's decision to leave the EU.

Kenneth Alexander, CEO said:

"I am pleased to report that in the first half of 2016 GVC has continued to deliver positive trading momentum. Q2 was particularly strong, helped by increasing volumes and favourable sports results during Euro 2016. The restructuring of the enlarged Group is progressing well with synergy targets being achieved, accompanied by strong underlying growth. We are very encouraged by the positive performance to date, however, it is still early days and there is much work to be done, nevertheless, the board remains confident for the remainder of 2016."

The Group intends to announce its interim results for the period 30 June 2016 on 20 September 2016.

This announcement contains inside information.

- ends -

For further information:

GVC Holdings PLC
Kenneth Alexander, Chief Executive	Tel: [phone]
Richard Cooper, Group Finance Director Nick Batram, Head of Investor Relations & Corporate Strategy	Tel: [phone]

Cenkos Securities plc
Mark Connelly, Jeremy Osler, Camilla Hume	Tel: [phone]

Media enquiries:

Bell Pottinger
David Rydell, James Newman, Anna Legge, Laura Jaques	Tel: [phone]

About GVC Holdings PLC

GVC Holdings PLC is a leading e-gaming operator in both B2C and B2B markets.  GVC has four main product verticals with a number of brands; Sports labels (bwin, Sportingbet, gamebookers), Gaming labels (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), Studios (B2B) and non-core assets.  GVC acquired bwin.party digital entertainment plc on 1 February 2016.  The Group is headquartered in the Isle of Man and has licences in more than 15 countries.

For more information see the Group's website: www.gvc-plc.com 

 

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