Trading Update and Notice of Interim Results

RNS Number : 9548G

GVC Holdings PLC

05 July 2012

 



Press Release

5 July 2012

GVC Holdings PLC

("GVC" or the "Group")

Trading Update

Notice of Interim Results

GVC Holdings PLC (AIM:GVC), a leading provider of B2B and B2C services to the online gaming and sports betting markets, is pleased to provide the following update for the six months trading to 30 June 2012.

Trading update

Gross revenues across the Group for the period increased 147% to €270k per day (H1-2011: €110k per day).

B2B division

GVC's B2B division saw significant growth from November 2011 after it entered into a service agreement with East Pioneer Corporation BV to provide back office services following that company's acquisition of the Superbahis brand from Sportingbet plc.

Underlying sports wagers amounted to €1.3 million per day (H1-2011: €80k per day), and a gross sports margin of 11.8% was achieved on this (H1-2011: 8%). Turnover reached an average of €164k per day (H1-2011: €8k per day).

B2C division

Gross revenues in the B2C divisionrose 4% to €106k per day (H1-2011: €102k per day).  Sports wagers rose 146% to an average of €119k per day (H1-2011: €49k per day), although the margin was softer at 8.1% (H1-2011: 10.9%).

Revenues in Betboo, the Group's Latin American brand, rose by 32% to €28k per day (H1-2011: €21k per day).

CasinoClub revenues saw a modest decline of 4% to €78k per day (H1-2011: €81k per day) reflecting ongoing consumer uncertainty in Germany.

The table below shows the average daily revenues for the six months to 30 June 2012 along with the comparative for 2011.

		H1-12	H1-11
		€000's	€000's
Days in period:		182	181
BY DIVISION
B2B		164.2	7.7
B2C		105.5	101.9
		269.7	109.5
BY ACTIVITY
Sports wagers		1,409.9	128.7
Gross win %		11.4%	9.1%
Net Sports revenue*		123.7	9.2
Gaming and other revenue		146.0	100.4
		269.7	109.5
B2B
Sports wagers		1,290.8	80.1
Gross win %		11.8%	8.0%
Net Sports revenue*		117.3	4.6
Gaming and other revenue		46.9	3.0
		164.2	7.7
B2C
BY BRAND
Betboo		27.8	21.0
CasinoClub		77.7	80.8
		105.5	101.9
BY ACTIVITY
Sports wagers		119.2	48.5
Gross win %		8.1%	10.9%
Net Sports revenue*		6.4	4.5
Gaming and other revenue		99.1	97.4
		105.5	101.9

* Net sports revenues are stated after promotional bonus and chargebacks.

The data by calendar quarter is shown below:

REVENUES BY QUARTER
	Q1 2011	Q2 2011	Q3 2011	Q4 2011*	Q1 2012	Q2 2012
	€000's	€000's	€000's	€000's	€000's	€000's
DAYS:	90.0	91.0	92.0	92.0	91.0	91.0
BY DIVISION
B2B	2.8	12.5	14.5	79.9	165.6	162.9
B2C	102.7	101.1	108.9	106.0	101.6	109.4
	105.5	113.6	123.4	185.9	267.1	272.3
BY ACTIVITY
Sports wagers	75.5	181.2	215.8	1,231.9	1,530.0	1,289.8
Gross win %	11.0%	8.3%	11.4%	11.0%	12.0%	10.8%
Sports revenue	6.8	11.5	17.7	59.2	133.7	113.8
Gaming and other revenue	0.7	5.3	6.5	25.9	133.4	158.5
	7.5	16.8	24.2	85.1	267.1	272.3
B2B
Sports wagers	35.9	123.9	126.5	1,151.0	1,420.1	1,161.4
Gross win %	8.4%	7.9%	10.5%	11.3%	12.3%	11.1%
Sports revenue	2.1	7.2	8.0	54.1	128.5	106.2
Gaming and other revenue	0.7	5.3	6.5	25.9	37.1	56.7
	2.8	12.5	14.5	79.9	165.6	162.9
B2C
BY BRAND
Betboo	20.9	21.2	28.2	26.2	25.4	30.2
CasinoClub	81.7	80.0	80.7	79.8	76.1	79.2
	102.7	101.1	108.9	106.0	101.6	109.4
BY ACTIVITY
Sports wagers	39.6	57.3	89.3	80.9	109.9	128.4
Gross win %	13.4%	9.2%	12.8%	8.3%	7.3%	8.8%
Sports revenue	4.7	4.4	9.7	5.2	5.3	7.6
Gaming and other revenue	98.0	96.7	99.2	100.8	96.3	101.8
	102.7	101.1	108.9	106.0	101.6	109.4

* Q4-2011.  For the B2B division this consists of 40 days for the contract with East Pioneer.

Kenneth Alexander, Chief Executive Officer of GVC, said: "Against a backdrop of challenging economic conditions we are pleased to report that the Group has generated a strong performance in the first half of the year.  Our B2B division, which has been operational now for just over seven months, continues to perform well.  The sixty staff engaged within this new division have worked extremely hard to establish this revenue stream for the Group and this is reflected in the figures reported today.  Our B2C brands have performed satisfactorily given the underlying economic climate and overall we remain cautiously optimistic for the year."

Notice of Interim Results

The Group expects to release its Interim Results on Wednesday 26 September 2012, along with a further trading update, and an announcement about its interim dividend at that time.

- Ends -

For further information:

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

Daniel Stewart & Company Plc	Tel: [phone]
David Hart / Paul Shackleton / Jamie Barklem	www.danielstewart.co.uk

Media enquiries:

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

About GVC Holdings PLC

GVC Holdings PLC is a leading provider of B2B and B2C services to the online gaming and sports betting markets.  The Group is headquartered in the Isle of Man and is licensed in Malta, and the Netherlands Antilles.

Further information on the Group is available at www.gvc-plc.com

 

END

 

 

MSCRIMFTMBTMBTT