15th Aug 2019 08:39
(Alliance News) - Sports-betting and gaming group GVC Holdings PLC on Thursday upped its full year guidance following a first half revenue rise and despite profit falling due to charges related to recent acquisitions.
Pretax profit for the six months ended June 30 fell sharply to GBP2.1 million from GBP113.8 million, largely attributed to GBP184.3 million in amortisation charges related to GVC's acquisitions of Ladbrokes Coral Group PLC in 2018 and bwin Interactive Entertainment AG in 2017.
Underlying earnings before interest, taxation, depreciation and amortisation, a preferred performance measure, jumped 56% to GBP366.8 million from GBP235.0 million.
GVC posted a revenue rise of 61% year-on-year to GBP1.78 billion from GBP1.11 billion. Net gaming revenue, essentially gross bets, also rose 61% to GBP1.81 billion from GBP1.12 billion.
GVC noted that on a proforma basis - which assumes that Ladbrokes Coral was integrated for the whole of the 2018 comparison period - both net gaming revenue and revenue rose 5% year-on-year from GBP1.72 billion and GBP1.69 billion respectively.
Using this performance measure, underlying earnings before interest, taxation, depreciation and amortisation would have been up 5% from GBP349.5 million.
The company also upped its interim dividend, by 10% year-on-year, to 17.6 pence per share from 16.0p.
Segmentally, GVC said its Online arm saw net gaming revenue growth of 17% to GBP1.02 billion from GBP872.7 million, despite the comparative period featuring the FIFA World Cup.
UK Retail had a net gaming revenue rise of 67% to GBP586.8 million from GBP351.5 million, despite the new UK law limiting stakes on fixed-odds betting terminals to GBP2.
Looking ahead, GCC said it expects full-year Ebitda to be GBP10.0 million ahead of initial expectations and within the range of GBP650.0 million and GBP670.0 million. It also confirmed its Roar Digital US sports-betting joint venture with MGM Resorts International is also on track to launch in September, in time for the start of the National Football League season.
Chief Executive Kenneth Alexander said: "The group's performance in the first half was extremely pleasing with group proforma net gaming revenue 5% ahead. Online momentum remains very strong with proforma net gaming revenue 17% ahead, delivering continued market share gains across all major territories.
"Our online operating model is proving highly effective, building on the sustainable competitive advantages of our wholly owned technology platform, leading product, cutting-edge marketing, leading brands and local execution, which are all delivered with an unrivalled understanding of the markets in which we operate."
The search for a new chair to succeed Lee Feldman is progressing, GVC said, with a "number of candidates" identified.
Shares in the company were up 2.8% at 562.20 pence each in London early on Thursday morning.
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