9th Apr 2014 09:46
LONDON (Alliance News) - Online gaming service provider GVC Holdings PLC Wednesday raised its total dividend for 2013 by 120%, after reporting a strong increase in revenues and profits for the year, boosted by its acquisition of e-gaming operator Sportingbet.
GVC Holdings said that current trading in its new financial year is at record levels, with net gaming revenues exceeding EUR50 million in the first quarter, compared with EUR35.6 million the prior year, with an average of more than EUR556,000 per day.
Signalling its confidence, the group declared a total dividend for the year 2013 of EUR48.5 cents, up 120% from EUR22.0 cents in 2012.
"We are now ready for the next stage in our corporate development and further geographic expansion through organic growth and acquisitions. GVC aims to deliver this without diluting the dividend. The board is confident of meeting current market expectations for the 2014 financial year as underpinned by our proposed dividend of EUR16 cents total," said Chief Executive Kenneth Alexander in a statement.
For the year ended December 31, 2013, GVC reported net gaming revenue of EUR168.4 million, a significant increase from the EUR60.3 million it reported in 2012, boosted by an increase in sports and gaming revenues.
Its pretax profit for the year was EUR13.0 million, up from EUR10.8 million the prior year, which it said was boosted by the acquisition of Sportingbet, which it then restructured and fully integrated into the business.
GVC said that sports wagers for the year came to a total of EUR1.17 billion, up from EUR518.9 million the prior year, while its sports margin for the year was 9.6%, 170 basis points lower than its sports margin of 11.3% in 2012.
During the year the group booked EUR19.7 million in exceptional costs, largely associated with its acquisition of Sportingbet last year, and restructuring and integration costs.
"GVC significantly restructured Sportingbet and its balance sheet, which not only had a deficit in working capital of EUR50 million at acquisition, but also, was substantially loss-making and cash-burning," the firm said.
GVC bought e-gaming operator Sportingbet in March last year; its Australian business was acquired by William Hill PLC. As part of the group's acquisition of Sportingbet, a call option was granted to William Hill over certain assets of Sportingbet's Spanish business, which it exercised.
GVC shares were trading 5.15 higher Wednesday morning at 399.50 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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