Trading update

RNS Number : 2581K

GVC Holdings PLC

06 July 2017

 

6 July 2017

GVC Holdings PLC

 ("GVC" or the "Group")

Trading update

GVC Holdings PLC (LSE:GVC), the multinational sports betting and gaming group, is pleased to announce a trading update for the six months to 30 June 2017, together with Q2 KPIs.

Key highlights:

·      H1 2017 Group daily NGR up 10% (+12% constant currency) vs pro forma¹ H1 2016

·      H1 2017 NGR €484.8m up 10% vs H1 2016 pro forma¹ €441.8m (+11% in constant currency)

·      Q2 2017 Group daily NGR up 8% (+10% in constant currency) vs Q2 2016

·      Q2 2017 underlying Group daily NGR up 15% vs Q2 2016 (excluding Euro 2016 revenues)

·      Kalixa disposal completed

·      Trading in line with management expectations

	Q2-2017	Q2-2016	Change	Constant	H1-2017	H1-2016	Change	Constant
in €000s	91 days	91 days		currency	181 days	182 days		currency
Sports Brands
Sports wagers	12,113	12,394	(2%)	(0%)	12,509	12,630	(1%)	1%
Sports margin	10.1%	9.9%			9.8%	9.2%
Sports NGR	945	952	(1%)	1%	947	898	5%	7%
Gaming / other	1,030	890	16%	18%	1,015	864	17%	19%
Total NGR per day	1,976	1,843	7%	9%	1,962	1,762	11%	13%
Games Brands	616	547	13%	15%	616	569	8%	10%
B2B & Non-core	90	96	(5%)	(4%)	100	97	4%	7%
Group NGR per day	2,682	2,485	8%	10%	2,678	2,428	10%	12%
Group NGR €m	244.1	226.2	8%	10%	484.8	441.8	10%	11%

Q2 KPIs

The Group enjoyed another strong quarter with daily NGR +8% on the same period last year and +10% in constant currency. This was achieved despite the absence of a major football tournament, reflecting continued good momentum across the business. Excluding Euro 2016 revenues, daily Group wagers and NGR were +10% and +15% respectively versus Q2 2016.

Within Sports Brands, the gross win margin for the period was 10.1% (9.9% Q2 2016), in line with our expectations of the long-term sustainable average. Daily wagers were broadly flat in constant currency, but as noted above, this was against a comparative period that included the Euro 2016 tournament - adjusting for this, underlying wager growth was 10%. Gaming daily NGR from Sports Brands continued to benefit from improved product and CRM, increasing +16% (+18% constant currency) on Q2 2016.

Games Brands daily NGR increased 13% (+15% in constant currency) over the same period last year, the highest quarterly growth reported by the division since the acquisition of bwin.party in February 2016. Growth is being driven by partypoker and an improving performance from the Group's standalone casino brands.

H1 2017

Group NGR for the first six months rose 10% to €484.8m (+11% in constant currency) versus pro forma¹ 2016. The disposal of Kalixa was completed 31 May 2017 and during the first half contributed revenues of €6.1m against €7.6m for pro forma H1 2016.

Kenneth Alexander (CEO) said:

"The Group continues to perform well with positive momentum across our core businesses. Achieving Q2 constant currency NGR growth of 10% in the absence of a major football tournament is particularly pleasing. As demonstrated at our recent Capital Markets Day, the organic opportunity is significant, whilst we are also well positioned to pursue further acquisition opportunities should they arise. This combined with an increase in marketing investment in the second half to more normalised levels gives the Board confidence of GVC delivering another year of strong progress."

¹Assumes bwin.party acquired 1 January 2016

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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For further information:

GVC Holdings PLC
Kenneth Alexander, Chief Executive Paul Miles, Chief Financial Officer Nick Batram, Head of Investor Relations & Corporate Strategy	Tel: [phone]  Tel: [phone] Tel: [phone]

Media enquiries:

Bell Pottinger
David Rydell, 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 business segments with a number of brands; Sports Brands (bwin, Sportingbet, Gamebookers), Games Brands (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), 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, is a constituent of the FTSE 250 index and has licences in more than 18 countries.

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

 

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