22nd Sep 2014 10:28
LONDON (Alliance News) - Online gaming company GVC Holdings PLC Monday said it has seen a strong start to the third quarter and declared a special dividend, after it said its strong growth in first-half profit and revenue was boosted by the World Cup earlier this year and the acquisition of Sportingbet.
The company posted a pretax profit of EUR19.6 million for the six months to June 30, compared with a profit of only EUR1.9 million in the first-half of 2013, when the company booked EUR13.8 million in exceptional costs.
GVC bought e-gaming operator Sportingbet in March last year, excluding its Australian business which was acquired by William Hill PLC. The acquisition has been a game changer for GVC, which has posted strong growth in revenues since the acquisition, increased its profits, and boosted its geographical footprint.
GVC recorded EUR105.1 million in revenue for the first-half, up from EUR73.2 million a year earlier, which it said was boosted by a higher number of wagers placed per day.
"GVC is now in a very strong position with exciting growth prospects as we continue to develop our market leading in-house sportsbook and mobile platform. The group remains highly confident for the outcome of this current financial year and this confidence is reflected in the enhanced dividend," said Chief Executive Kenneth Alexander in a statement.
The company increased its quarterly dividend to EUR12.5 cents per share and in addition declared a special dividend of EUR2.5 cents, bringing its total interim dividend to EUR15 cents per share, up 43% on last year.
GVC said it has seen a strong start to the third quarter, with trading per day at EUR628,000, 20% higher than the third quarter of last year, which was EUR523,000 per day.
GVC said it will continue to invest and develop its in-house sportsbook and mobile technology to maximise its growth prospects and generate the cash needed for its "aggressive dividend policy."
The company said in-play now amounts to 70% of wagering, with mobile accounting for around 22%, benefiting from heavy investments.
GVC has issued confident trading statements of late, citing growth in player numbers as it continues to invest and expand.
The online gaming company is currently expanding into the Scandinavian gaming markets via a joint venture with Betit Securities Ltd, forming a new company known as Betit Holdings Ltd.
GVC has told Alliance News in the past that it is focused on moving into Scandinavia and Asia, where its key brand Sportingbet does not currently have a presence. It has also said its keen to expand in South America.
GVC shares were trading 0.7% higher late Monday morning at 480.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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