GVC Profits Up 17% In First Half Of 2018

GVC Holdings has published interim H1 results for 2018, showing a strong 17% growth in profits.

London-listed GVC Holdings, the multinational sports betting and gaming group, has published interim results for the first half of 2018, showing profits grew by a very healthy 17%.

The results reflect the results of the recent acquisition of Ladbrokes Coral – the group’s first foray into retail operations, which was completed on 18th March this year – and also the positive impact of the FIFA World Cup.

The interim results on a pro forma basis, before separately disclosed items, for the six months ended 30th June 2018 saw:

  • Net gaming revenue (NGR) increase by 8% year on year to £1.7bn.
  • Underlying EBITDA increased 11% to £349.5m
  • Underlying profit increased 17% to £277.9m
  • Online NGR increased 14%
  • European retail NGR increased 29%

GVC CEO Kenneth Alexander said:

“The performance of the GVC Group in the first half has been extremely pleasing in what has been a very busy period. Strong momentum in Online and European Retail has continued, and a positive World Cup helped improve trends in UK Retail in the second quarter.

“The acquisition of Ladbrokes Coral completed on 28 March and the integration of that business is progressing well. We have now identified capex synergies of at least £30m in addition to the £130m cost synergies and we are well placed to deliver those savings while driving top line growth. We are gaining market share in all our key markets and we will look to reinvest to further strengthen our market position.”

He went on to mention the “significant new market opportunity” represented by the repeal of PASPA in the United States, and GVC’s joint venture with MGM Resorts. Outlining the company’s plans to build scale and diversification though organic growth and acquisition, he said that GVC was well positioned to capitalise on opportunities provided by increasing gaming regulation.

The company has also announced the appointment of Pierre Bouchat to its Board, as an independent Non-Executive Director. Mr Bouchut has forty years of experience in senior management roles in finance, retail and property, and is a non-executive director and chairman of the audit committee at Hammerson plc and Firmenich SA, a director and chairman of the audit, accounts and risk committee of Albioma SA, and a non-executive director of GeoPost SA.

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