5th Mar 2020 09:47
(Alliance News) - Bookmaker GVC Holdings PLC reported a "good" annual performance on Thursday, in its first full year since merging with Ladbrokes Coral.
GVC completed the GBP3.2 billion acquisition of Ladbrokes Coral in March 2018. GVC shares were 2.7% lower on Thursday morning in London at 785.80 pence each, giving it a market capitalisation of GBP4.6 billion.
GVC's revenue in 2019 was 22% higher at GBP3.66 billion, with the proforma figure rising 2%.
The company posted a pretax loss of GBP174.2 million, widened from GBP18.9 million a year prior. This was mainly due to a GBP245 million impairment in the Online business due to new taxes in regions such as New Zealand and Tasmania as well as costs related to the Ladbrokes Coral and bwin deals.
On an underlying basis, pretax profit increased by 23% to GBP535.8 million.
GVC is paying a second interim dividend of 17.6 pence per share, taking the year's total to 35.2p, up 10% on 2018.
GVC said growth in net gaming revenue was driven by a "strong" performance in the Online, European Retail, and UK Retail OTC businesses. Online net gaming revenue rose 13%, and European Retail proforma net gaming revenue rose 4%.
UK Retail like-for-like net gaming revenue declined by 12%, though like-for-like sports net gaming revenue in retail was up 7%. Revenue in bricks-and-mortar stores was hit by the reduction of the maximum stake on fixed-odds betting machines to GBP2 from GBP100.
"Our first full year since the Ladbrokes Coral acquisition has been a good one, and the performance has continued to be underpinned by our unique and highly effective operating model. We have delivered very strong growth in our Online business, including market share gains in all major territories, and good momentum in our European Retail business," said Chief Executive Kenneth Alexander.
"This revenue growth has more than offset the impact on the UK Retail business of the GBP2 restriction on B2 machines stakes. We are delighted with the progress that is being made on the Ladbrokes Coral integration.
"Looking ahead, we are confident GVC's broad international footprint, proven track record of acquisition and strong organic growth will continue to present significant opportunities for further expansion," Alexander added.
In the period between the start of 2020 and February 23, GVC said net gaming revenue has risen 5% and constant currency and Online net gaming revenue by 16%, with sports margins "strong". This, GVC said, represents a good start to 2020.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
GVC.L