Strong Online Performance Boosts GVC Revenue for Q1

GVC Holdings PLC, a world-famous gambling and online gambling operator for both B2B and B2C markets, has officially released the company’s newest update on financial results.

One of the largest sports gambling and gaming groups in the world has presented to the public some great results for the first quarter of this year.

Although the UK introduced some changes regarding so-called fixed off betting terminals (FOBT)…

…the company saw major performance boosts and increases in revenue.

Great Results for the Start of the Year

The CEO of GVC is quite optimistic and believes that the company will grow continuously throughout the year.

GVC Holdings reported a nice 8% growth on their net gaming revenue for the first quarter of 2019…

…and it is believed that the results are good thanks to the better results in virtual sports and gambling bets.

The nice improvement in online operations most definitely helped to counteract losses brought by changes in the UK market. Also, the retail revenue for GVC stayed flat, while the online revenue grew 17%.

A Word from the CEO

The CEO of GVC, Kenneth Kenny Alexander, discussed the company’s latest financial report…

…and noted that he truly believes that the figures from the first quarter of the year are showing an excellent start for this big company.

“We continue to see good volume growth across all major online brands and territories and we remain very confident of achieving our target of double-digit online NGR growth. The impact of soft gross win margins in Italy and the UK was offset by improved margins in other territories, demonstrating the benefit of both geographic and product diversification across the Group,” Alexander, said.

Changes in the UK Rules

Since the month of April of 2019, FOBTs in the United Kingdom had to have a £2 maximum wager amount, which is down from the £100 that was the previously allowed maximum.

But, this change is already showing that it is not effective, which comes as no surprise. So, it probably won’t be long until some temporary losses due to the switch get recuperated via some other mechanisms.

The CEO also believes that it will have to several weeks before the company starts to assess the impact of the new FOBT rules. But, Alexander is quite confident that his company will deliver “EBITDA and operating profit in-line with expectations” even “at this early stage of the year.”

More about GVC

GVC Holdings is the owner of various big names in the gaming industry. This gambling giant holds ownership of world-famous companies like Coral, bwin, Sportingbet, Gala, partypoker, and Ladbrokes…

…while operating in many countries across the globe.

Just recently, the company also signed a business partnership with MGM Resorts and that way it will expand its gambling presence in the United States as well.

Source:

“Strong online performance boosts GVC revenue for Q1”, Erik Gibbs, calvinayre.com, April 5, 2019.