GVC's 2018 Revenue Exceeds Expectations

Casino operator, GVC Holdings has publicly posted revenue figures for 2018, revealing that they have sured forecasts for that year. Consequently, the company’s shares rose in value on London stock exchanges this week, following the announcement.

The brand that has Ladbrokes, Bwin and Sportingbet casino brands under its umbrella (among others) has published a release in which it is said that 2018 gross gaming revenue was originally estimated to be up 9% year-on-year.

In fact, total net gaming revenue for the year was between 19 and 21 percent…

…additionally, it made a substantial jump across all key sectors and verticals. The key factors that contributed to this surge are identified in successful European retail businesses and, most notably, a very strong performance by the online sector.

GVC in a Land of Plenty

Compared to 2017, GVCs’ sports brands saw a 20% increase in revenue, whereas gaming brands were at somewhat lower point at 16% rise. Similar numbers apply to their B2B business which made a 17% jump. Retail business in Europe saw its net gaming revenue surge by 16%.

The company enjoyed a particularly strong finish to the year – fourth quarter’s revenue alone was 5% up on annual basis.

Having achieved these results, GVC expects earnings before tax and interest to be in the region of £750 and £755 million. The full-year results will be published on March 5th, including the complete earnings for the year.

Company’s CEO Kenneth Alexander stated that 2018 performance has been overall excellent, “with strong momentum reported at Q3 continuing into Q4,” and added:

“We are materially outperforming the market and taking share in all of our major territories. As the group carries this momentum forward into the new year, and starts to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports-betting t-venture in the US with MGM Resorts, the board is confident that the group is very well placed for a successful 2019.”

It All Comes Down to Online

Fourth quarter’s online sports revenue was up 14%, with 18% jump in wagers. Likewise, retail business in UK was going through some slower periods and even reported a 3% smaller revenue that in 2017.

As far as European retail goes…

… Belgium and Ireland grew by 15% and 8%, offsetting general continental decline by 7% in Q4.

The company made a major business move in late November with the $95 million acquisition of Neds International, Australia’s sports betting and gambling brand.

Alexander said on the occasion that Australia is one of the core markets for the group and that Neds is “an exciting business with talented people.”

Elsewhere in US, the operator has teamed up with casino titans, MGM Resorts, looking for business opportunities in US Indian tribal gaming market, especially in regards to sports betting. The two brands are working closely together on identifying the chances for development of existing tribal partnerships and formation of new ones.

Source:

“GVC outperforms expectations thanks to online gains in 2018”, igamingbusiness.com, January 17, 2019.