17th Jan 2019 08:45
LONDON (Alliance News) - FTSE 100-listed gambling firm GVC Holdings PLC said Thursday that it experienced a "strong" performance in final quarter and annual profit is now expected to be ahead of market expectations.
For the three months ended December 31, the company's total proforma net gaming revenue grew 5% on a reported basis and 6% at constant currency.
This was helped by strong growth from its online sports and games brands. GVC, in particular, noted that its sports brands "growth remained impressive across all major territories." Meanwhile, their retail business across the UK and Europe saw net gaming revenue fall.
"The group's performance in 2018 has been excellent with the strong momentum reported at the third quarter continuing into the fourth quarter," GVC Chief Executive Kenneth Alexander said. "We are materially outperforming the market and taking share in all of our major territories."
For 2018, proforma net gaming revenue advanced 9% on a reported and 9% at a constant currency basis. This was, again, helped by strong online growth performances with 19% reported and 21% constant currency growth in this part of the business.
For the full year, like-for-like UK retail net gaming revenue fell 3%. In contrast, European retail saw 16% reported and 14% constant currency growth following "strong" growth in Italian unit.
GVC, which bought peer Ladbrokes Coral Group PLC for GBP3.2 billion in March 2018, expects to report earnings before interest, taxes, depreciation and amortisation of between GBP750 million and GBP755 million for 2018. This is "ahead" of current market expectations of Ebitda around GBP739.0 million, GVC explained.
"As the group carries this momentum forward into the new year, and starts to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports-betting joint-venture in the US with MGM Resorts, the board is confident that the group is very well placed for a successful 2019", Alexander added.
In July 2018, GVC entered into a USD200 million joint venture with MGM Resorts International to form a "leading sports betting and interactive gaming platform" in the US amid a loosening of US sports betting regulation earlier in May by the Supreme Court.
The US Department of Justice, however, on Monday changed its stance on internet gambling, deciding a prohibition is not just limited to online sports betting. In 2011, the DoJ had ruled the 1961 Wire Act was only related to sports betting online, having been asked a year before that by the Criminal Division to make a judgement.
"Having been asked to reconsider, we now conclude the statutory prohibitions are not uniformly limited to gambling on sporting events or contests," US Department of Justice said on Monday.
Shares in GVC were 0.9% higher at 679.00 pence on Thursday. The company expects to release its full year results on March 5.
Related Shares:
GVC.L