Gaming drives GVC to 14% H1 revenue growth
Gaming NGR rises by 23% as operator reports "softening" of player activity in Greece operations due to current capital controls
GVC Holdings this morning posted a 14% rise in net gaming revenue (NGR) during the first six months of the year with strong growth from its gaming division helped offset a drop in sportsbook margin during the half year period.
In a trading update, the operator revealed total NGR for the six months ended 30 June increased to 120m (£85.8m), up from 105.1m (£75m) during the same period in 2014.
The lion’s share of the growth was derived from its gaming division which saw NGR rise by 23% to approximately 65.3m during the period, at an average of 361,000 per day.
GVC’s sportsbook division also performed well against World Cup comparatives as H1 sports wagers rose 19% year-on-year to 823m (£588.1m), but NGR was up a more modest 5% to 54.7m after a run of customer friendly results meant margin fell from 9.9% to 8.9%.
Total customer deposits also rose significantly, up 18% year-on-year to 1.7m (£1.2m).
“I am delighted to announce another record revenue performance for the half-year,” Kenneth Alexander, chief executive officer of GVC Holdings, said.
“Wagers, NGR, customer deposits continue to grow and the Board remains confident for the outlook for the remainder of the year and beyond,” he added.
However, GVC noted a “softening of player activity” in Greece with its partner Centric Multimedia after the government introduced capital controls in the wake of the country’s current financial woes.
On 29 June the Greek government imposed controls which limit withdrawals from bank accounts and a 60 (£42) per day cash limit from ATMs. GVC said it would continue to monitor the situation.
According to analyst Karl Burns of Panmure Gordon, it is still too early to predict the full implications of the Greek situation on GVC but estimated revenues from the country would account for roughly 10% of the overall business.
Today’s trading update follows recent confirmation from the operator of a joint-bid with Amaya Gaming to acquire the entirety of bwin.party, a bid the Financial Times yesterday reported valued bwin.party at £900m.
GVC today refused to comment on the bid bar to say talks were continuing.
GVC’s share price was down 7.5p to 450p after early morning trading.