GVC to hit FY target despite NGR fall
GVC expects to meet FY targets despite 12% fall in average daily NGR in the first 11 weeks of Q4.
GVC Holdings expects 2010 results to be in line with market expectations, it announced in a fourth-quarter trading update this morning, despite a 12% year-on-year fall in average daily net gaming revenue (NGR) in the 11 weeks to 15 December 2010.
Total NGR fell 12% to 142k, from 161k for the comparable period last year, announced the operator of the German-facing Casino Club and Italian-facing Betaland brands.
The bulk of the fall was accounted for by a 66% year-on-year fall in daily average NGR from sports betting to 11k, from 32k, despite a 41% increase in average daily sports wagers to 205k from 146k. The said that sports hold had been negatively impacted by an unfavourable run of sports results.
Gaming NGR however proved more resilient, with average daily NGR of 131k dipping only marginally below the 129k recorded a year earlier, helped by the solid performance of its core CasinoClub offering. Average daily NGR from Casino Club remained broadly stable at 78k, compared to the 81k recorded a year earlier.
GVC added that it expected growth in its Latin American Betboo business “to increase materially and be self-funding as the Group steps up its marketing investment in 2011.” Overall volumes had however been impacted respectively by the move of sports trading management to Malta from Latin America, and of its casino and poker platform to an alternative provider.
GVC said a hearing had been held in Malta on 2 December regarding its ongoing litigation with Boss Media over claims the software provider had breached its obligations of confidentiality to GVC. Boss has brought separate arbitration proceedings against GVC Corporation BV in Sweden.
As reported by eGR in April, GVC is involved in several disputes with Boss regarding alleged infringement of the group’s intellectual property and the ability of Boss to terminate its contract to provide poker and downloadable casino to Gaming VC’s Italian-facing Betaland.com site.
GVC said the Maltese Court accepted its position that proceedings brought in Malta and Sweden by GVC against Boss are totally separate and should not be tied together. The court has given Boss leave to present further evidence in relation to the issue of jurisdiction by 25 January 2010, with the hearing now adjourned until 24 February 2010.
GVC plans to issue a further trading update on or around 25 January 2011, and to release its preliminary results for the year ended 31 December 2010 on 28 March 2011.
GVC expects to meet FY targets despite 12% fall in average daily NGR in the first 11 weeks of Q4.