GVC online revenues rise 11% in Q4
Kenny Alexander hails “excellent” year as London-listed operator looks set to reach top of full-year EBITDA guidance
GVC Holdings expects full-year EBITDA to hit the top end of its £670m-£680m forecast after Q4 finances were boosted by strong online performance and positive betting margins.
The London-listed operator reported an 11% constant currency increase in online net gaming revenue (NGR) during the fourth quarter, driven by sports wagering growth of 10%.
Sports NGR increased by 15% in Q4, while gaming revenue was also 9% ahead on a constant currency basis.
Sports were improved by a gross win margin +0.6pp ahead of 2018, with the group reporting strong margins in UK and Australia, echoing William Hill’s latest update.
Sports margins were offset by softer international margins in other markets, which also played a part in Kindred Group’s Q4 trading update.
UK retail was down 11% in Q4 driven by the FOBT stake cuts, although the impact was softer than expected as GVC mopped up benefits from the shop closures of its domestic rivals.
Overall group NGR growth remained flat at 1% in Q4, rising to 2% for the full-year figure.
GVC CEO Kenny Alexander
GVC CEO Kenny Alexander said: “The group’s operational and financial performance in 2019 has been excellent with the strong momentum reported at Q3 continuing throughout Q4.
“The performance continues to be driven by our industry-leading technology, products, brands, marketing capability, people and local execution, all of which is underpinned by our determination to spearhead the industry’s approach to responsible gaming.
“As the group continues to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports betting joint-venture in the US, the board is confident that the group is well placed for a successful 2020,” he added.
Alexander said GVC’s US business, Roar Digital, was also making good progress in Q4 after striking a betting app deal with Yahoo Sports in November.
Peel Hunt analyst Ivor Jones said: “In the UK, criticism of the gambling industry by policymakers is relentless.
“However, GVC has a broad geographic spread of business and opportunities in Brazil, Argentina, the Netherlands and other developing online gambling markets.
“In Germany it appears to be navigating the regulatory challenges well. This diversity brings insulation from risk and greater growth opportunities,” he added.