GVC 'ready to do more deals'
Chief exec Kenneth Alexander (pictured) says GVC is keen to replicate its Sportingbet success as the company sharpens its focus on Latin America
GVC Holdings is in the market for another acquisition following the rapid integration of Sportingbet’s non-Australian business it bought in March, according to its CEO Kenneth Alexander.
Yesterday’s H1 2013 results revealed GVC had managed to return the struggling sportsbook to profit ahead of schedule following a restructuring of the business in which almost 50% of its cost base was stripped out.
Alexander told eGaming Review that the success of the deal, which has seen H1 EBITDA rise from 7.7m in 2012 to 17.8m in 2013, has left the company keen to explore further acquisitions.
“The integration and restructuring of the Sportingbet business could not have gone better and we are ready to do more deals,” Alexander said.
“We’ve announced this year we’ve increased our dividends and there are market forecasts out there which suggest next year’s dividend is going to be even greater and that is the result of the Sportingbet deal.
“That is the type of deal we are looking to do again. If I could do another Sportingbet-type deal next year, I would do it. Sportingbet has been restructured – it’s job done and time to do another one,” he added.
Although Alexander said GVC was not in any current acquisition discussions, he said there were a number of suitable targets and described the market as “ripe for consolidation”.
“There’s more taxation and there are companies that are short of scale and we have a market leading product and we’ve proven we can do migration and restructuring,” he said. “If people want to talk to us, they know where I am.”
The company also looks set to make Latin America a prime focus for 2014, leveraging the leading positions of its Betboo and Sportingbet brands, which he said were number one and two in the local market.
Alexander said the final details of a marketing push are being drawn up and he expects the two businesses to increase market share as a consequence.
“In 2014 there is the World Cup and it goes without saying that it will be the biggest opportunity for growing and marketing an online sportsbook. It’s in Brazil, it’s in Latin America, which is one of our fastest growing markets. It’s a great opportunity for us,” he said.
“We’ve always been excited by the Latin American market “ it’s still a decent sized market for us, it’s fast growing and I think it can grow significantly in the next three to four years,” Alexander added.