Online casino and sportsbook operator GVC Holdings has posted huge year-on-year increases in revenue and earnings for the six months through to the end of June.
Sales rocketed by 144% to €72.3 million ($97.6 million), helping to generate earnings before interest, tax, depreciation and amortisation (EBITDA) of €17.8 million, a 132% increase on the corresponding period of 2012.
GVC said that full-year EBITDA would be ahead of current market expectations and added that its restructure of Sportingbet is nearing completion and is now profitable.
In a trading update for the third quarter of 2013, the company also said that its revenues were up by 249% to €516,000 per day.
“The board is pleased to report another period of solid growth, increased profitability and a further dividend for our shareholders,” GVC Holdings chief executive officer Kenneth Alexander said.
“In the first half of 2013, we completed our acquisition of Sportingbet PLC and have since been working hard to turnaround this business and integrate it into the group. The execution of our strategic plan to restructure and return this business to profitability is near completion and has gone far better than expected.
“Under GVC’s leadership, revenues in the Sportingbet business have increased and by the end of 2013 the board expects that the inherited cost base will have already been reduced by around 50%. The balance sheet has been completely repaired, the cash burn stopped and this business is now profitable.
“The group has performed well in the first half of 2013 and continues to trade well in the third quarter of 2013. The board is therefore confident that market expectations for the current financial year will be exceeded and our confidence in the future is represented in the Group’s dividend to shareholders.”
