9th Oct 2019 07:58
(Alliance News) - GVC Holdings PLC on Wednesday upped its annual guidance after reporting a solid third quarter of trading and said it still expects to close 900 stores in the UK.
The betting firm raised its earnings before interest, taxation, depreciation and amortisation guidance to a range of GBP670 million and GBP680 million. GVC previously guided for full-year Ebitda in the range of GBP650 million from GBP670 million.
Total net gaming revenue was down 1.0% year-on-year on a like-for-like basis during the quarter ended September 30, though in the year-to-date, it has improved 3.0%.
In Online alone, there was growth of 12% in the third quarter, despite a strong comparative period featuring the FIFA World Cup.
In UK Retail, like-for-like net gaming revenue was down 18%, though trends remain ahead of expectations following the UK government imposing a maximum stake of GBP2 on fixed-odds betting terminals, GVC said. Over-the-counter sports wagers improved by 7% on a like-for-like basis in the third quarter however, the company added.
The FTSE 250 constituent confirmed plans to close 900 more high street stores over the next two years. During the third quarter, 41 stores were closed meaning 198 have been closed since the beginning of a company review.
Chief Executive Kenneth Alexander said: "Online momentum remains strong across all major territories, with net gaming revenue up 12% in the quarter despite the prior period containing part of the World Cup. This performance continues to be driven by our industry-leading technology, products, brands, marketing capability, and people.
"The launch in September of the BetMGM app in New Jersey, powered by the GVC technology platform, is a key milestone, and our US sports-betting joint venture with MGM Resorts International remains very well-placed to capitalise on the US sports-betting opportunity. The integration of the Ladbrokes Coral businesses is progressing well with the migration of the Ladbrokes, Coral and Gala online brands due to commence in the fourth quarter and complete by the end of the first half of 2020."
GVC said the deadlock of its regulatory position in Germany has not progressed during the period to the end of September.
The company warned: "There is a realistic possibility that the regulatory position will not be resolved until 2021, when positive re-regulation of the German online sports-betting and gaming market is expected."
In August, the firm said it expects to continue offering online gaming in Germany through to 2021.
By Eric Cunha; [email protected]
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