25th Sep 2013 08:57
(Correcting GVC's expectations are for the current financial year.)
LONDON (Alliance News) - GVC Holdings PLC, the online gaming-services provider, Wednesday said that revenues rose by 144% in the first half of the year to June 30, but profits fell due to restructuring and acquisitions costs associated with the turnaround of recent-acquisition Sportingbet.
GVC holdings said that trading so far in the third quarter is strong, with group revenues up 249% to EUR516,000 per day, and like-for-like revenues in the third quarter up 3.4% on 2012. It said that its sports margin in the third quarter across all products stands at 9.7%.
GVC said that it is confident that it will beat market expectations for the current financial year
Isle of Man-based GVC said that e-gaming operator Sportingbet - the Australian business of which was bought by William Hill PLC - is already profitable and the restructuring of the business has been completed following its March acquisition.
GVC declared its third dividend of 2013 of 10.5 Euro cents per share, raising its total payout for 2013 to 28 cents.
It reported a revenue increase of 144% to EUR72.3 million in the half year to June 30, compared with EUR29.6 million a year earlier. GVC said that like-for-like revenues rose 8.5% on the year, averaging EUR594,000 per day.
The restructuring of the Sportingbet business has allowed it to reduce its inherited costs base by around 50%, GVC said. It said that revenues from the business averaged at EUR302,000 per day in the first half of the year, up 5.2%. It said that its sports margin achieved was up 9.1%, despite the absence of a major football tournament this year.
In GVC's B2B business it said that revenues averaged at EUR207,000 per day, an increase of 15%, and said its sports margin was 12.3%.
GVC said that revenues from its CasinoClub business averaged EUR85,000 per day in the first half, up 9% on the previous year.
The group reported a fall in its pretax profit to EUR1.1 million, compared with EUR5.5 million a year earlier, due to costs of EUR9.3 million relating to the acquisition of Sportingbet, and a further EUR5.4 million in restructuring costs. It reported a net profit of EUR829,000, compared with a net profit of EUR4.3 million a year earlier.
GVC Holdings shares were off 1.4% at 314.00 pence in Wednesday morning trading.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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