Trading Update

RNS Number : 1312Y

GVC Holdings PLC

17 December 2010

 



Press Release

17 December 2010

GVC Holdings PLC

("GVC" or the "Group")

Trading Update

Launch into emerging markets

Boss Media litigation update

GVC Holdings PLC (AIM:GVC), a leading online gaming company, today announces a trading update for the period from 1 October 2010 to 15 December 2010 ("Q4-2010"), as well as an update on the litigation with Boss Media and the development of the Betboo brand into Latin America.

Trading Update

The Group expects its 2010 results to be in line with market expectations. The Board expects to be able to declare a final dividend in line with the €0.10 cents dividend paid in October 2010.

The CasinoClub brand has proved to be resilient with average daily NGR being €78k in Q4-2010 against €81k for Q4-2009 - CasinoClub has had a particularly strong December* where daily NGR has averaged €83k.

Sports wagers have in Q4, risen by 41% to €205k per day (Q4-2009 €146k).  Sports margins over the year have averaged 12.6% (2009: 16.8%), but have been soft in Q4-2010 (6%) following a run of unfavourable sports results.

The average daily statistics in Q4-2010* were:

·     Sports wagers €205k (Q4-2009: €146k)

·     Sports hold 6% (Q4-2009: 22%)

·     Sports Net Gaming Revenue ("NGR") €11k (Q4-2009: €32k)

·     Gaming NGR €131k (Q4-2009: €129k)

·     Total NGR €142k (Q4-2009: €161k)

The average daily statistics for 2010* were:

·     Sports wagers €193k (2009: €149k)

·     Sports hold 12.6% (2009: 16.8%)

·     Sports Net Gaming Revenue ("NGR") €24k (2009: €24k)

·     Gaming NGR €126k (2009: €124k)

·     Total NGR €149k (2009: €150k)

The trading from each brand over the period from 1 October 2009 to 15 December 2010, expressed as average revenues per day for each of the three brands is set out below:

CasinoClub

€'000s	Q4-09	Q1-10	Q2-10	Q3-10	Q4-10*
Average revenue / day	81	79	73	68	78

Betaland

€'000s	Q4-09	Q1-10	Q2-10	Q3-10	Q4-10*
Sports wagers per day	131	177	165	109	174
Sports hold	23%	14%	17%	26%	6%
Sports NGR per day	31	25	28	28	10
Gaming NGR per day	38	43	39	33	38
Total average NGR per day	68	68	67	60	48

Betboo

€'000s	Q4-09	Q1-10	Q2-10	Q3-10	Q4-10*
Sports wagers per day	14	34	53	30	31
Sports hold	8%	(2%)	(1%)	11%	4%
Sports NGR per day	1	(1)	(0)	3	1
Gaming NGR per day	10	11	14	14	15
Total average NGR per day	11	10	14	17	16

Totals

€'000s	Q4-09	Q1-10	Q2-10	Q3-10	Q4-10*
Sports wagers per day	145	211	218	139	205
Sports hold	22%	12%	13%	22%	6%
Sports NGR per day	32	25	27	31	11
Gaming NGR per day	129	132	126	115	131
Average revenue / day	161	157	153	146	142

Note: * Period from 1 October 2010 to 15 December 2010

Net Gaming Revenue ("NGR")

Sports wagers have increased by 41% to over 205k per day (Q4-2009: €146k).  The sports hold, whilst averaging 15% throughout 2010 (2009: 16%), has in Q4-2010 been adversely effected by unfavourable sports results.  Gaming NGR, particularly through CasinoClub, has been more resilient than the Board expected.

Betboo - Latin America

The growth in Betboo Latin America is expected to increase materially and be self-funding as the Group steps up its marketing investment in 2011.  As previously announced, the Group moved the management of its Betboo sports trading from Latin America into Malta.  This has led to an improvement in margins at the short-term expense of volume.  In Q4-2010 the Group migrated its Casino and Poker platform to an alternative provider which has also had a short-term impact on volumes.

Betboo - Emerging markets

As previously announced, GVC is using its Betboo brand, which uses its own sports software, to launch into new markets in a variety of languages.  GVC is pleased to announce that plans for the launch of the business are progressing well and in-line with management's expectations and the sites are in beta test and are shortly to go live.

Update on litigation with Boss Media ("Boss")

As previously announced to the market, GVC is in litigation with Boss, an associated undertaking of Lottomatica S.p.A. GVC claims that Boss, together with others, has breached its obligations of confidentiality to GVC.

A Court hearing in relation to jurisdiction was held in Malta on 2 December 2010. Boss has brought separate arbitration proceedings against GVC Corporation BV in Sweden.

On 2 December 2010, the Maltese Court accepted GVC's position that the proceedings in Malta and Sweden are totally separate and should not be tied together. The Maltese Court has allowed Boss to present further evidence in relation to the issue of jurisdiction by 25 January 2010 and adjourned the hearing on jurisdiction until 24 February 2010.

In relation to the arbitration in Sweden, the date for oral submissions on jurisdiction to the tribunal has been preliminarily set for 20/21 June 2011.

GVC will keep the market informed of developments in relation to these cases.  The cost associated with this litigation is being expensed as incurred and will be disclosed separately in the Group's financial results.

The Group expects to make a further trading update on or around 25 January 2011, and is planning to release its preliminary results for the year ended 31 December 2010 on Monday, 28 March 2011.

- 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.

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.

 

END

 

 

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