GVC raises 2019 EBITDA guidance as Q3 online revenues climb 12%
Ladbrokes Coral owner upgrades guidance to £670m-£680m following 16% and 8% growth in sports and gaming respectively
GVC Holdings today announced it has raised its full-year EBITDA guidance to between £670m and £680m after the Ladbrokes Coral owner reported a 12% rise in Q3 online net gaming revenue (NGR).
The London-listed firm this morning revealed double-digit (11% in constant currency) NGR growth from its online business, with sports and gaming up 16% (15% CC) and 8% (7% CC) respectively.
Stripping out the 2018 FIFA World Cup, online NGR increased 14% year-on-year in the three months ended 30 September 2019, while total sports wagers were 5% ahead of Q3 2018 and gross win margin was up 1.00pp.
The strong growth from GVC’s digital division, which includes brands such as bwin and Ladbrokes, enabled the company to upgrade its 2019 pre-IFRS176 EBITDA guidance from £650m-£670m to £670m-£680m.
GVC CEO Kenny Alexander says he’s “delighted” by the company’s Q3 2019 performance
The operator also reported an 18% decrease in UK retail NGR driven by the cut in FOBT maximum stakes to £2, although that figure is still ahead of initial guidance.
“I am delighted that the Group’s financial performance has allowed us to upgrade our full year EBITDA expectations again,” GVC CEO Kenny Alexander said.
Alexander added: “Online momentum remains strong across all major territories, with NGR 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.”
GVC’s share price was up 2.68% to 770.09 on the London Stock Exchange at the time of writing.
Other notable events during the period included the launch of The GVC Foundation, a new body created to help GVC coordinate and support its global responsible gambling measures.
Numis analyst Richard Stuber reiterated his BUY rating for the London-listed operator. He said: “With strong online momentum, a well-diversified portfolio and an attractive valuation, we reiterate our high conviction BUY recommendation.”