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GVC Holdings has reported an 11 per cent increase in group net revenue for the second quarter of 2018, driven by strong online growth and the performance of its European retail estate.
The company said in a trading update Wednesday that online net gaming revenue (NGR) in the second quarter grew at 22 per cent year-on-year, or 25 per cent on a constant currency basis, with online brands benefiting from a pipeline of new products and from high profile marketing campaigns.
Key highlights (proforma basis1):
Positive growth trends continue with Group NGR +11% (cc2 +12%)
Strong Online NGR growth at +22% (cc2 +25%)
UK Retail Like-for-like (“LFL”)3 NGR in growth at +2% helped by World Cup
European Retail NGR +19% (cc2 +16%)
Group NGR +8% (cc2 +8%)
Online NGR +18% (cc2 +20%)
For the period up to commencement of the World Cup Online NGR +15% (cc2 +17%)
Positive World Cup driven by margin and volume
UK Retail LFL3 NGR -3%
European Retail NGR +29% (cc2 +26%)
The Group saw an acceleration in year-on-year growth in Q2 2018 over Q1 2018 driven by good underlying momentum and the World Cup.
Online NGR growth was 22% in Q2 (cc2 +25%) and +18% (cc2 +20%) for the six months to 30 June 2018. Online NGR for the period from 1 January to 13 June (i.e. prior to the commencement of the World Cup) was +15% (cc2 +17%), reflecting strong underlying growth. The Online brands have continued to benefit from a pipeline of new products and from high profile marketing campaigns.
UK Retail trends improved in the second quarter as the weather proved less disruptive than in the first quarter, while growth in European Retail remained very strong, albeit helped by a soft comparative.
The World Cup tournament as a whole has been a good one for the Group, helped by a better than expected gross win margin but also importantly volumes and value of new customer deposits.
The Group intends to release its interim results on 13 September 2018.
Kenneth Alexander (CEO) said:
“I am pleased to report this positive trading update whilst at the same time undertaking the integration of the Ladbrokes Coral business. The strong momentum across the online business has continued and means we are well placed to deliver against our full year expectations.”
The Group’s proforma results are presented as if the current Group, post the acquisition of Ladbrokes Coral, had always existed. As such, it excludes the results of the Turkish business which was discontinued during 2017and the 360 shops that the Ladbrokes Coral Group was required to divest on merger.
Growth on a constant currency basis is calculated by translating both current and prior year performance at the 2018 exchange rates.
UK Retail numbers are quoted on a LFL basis. During H1 and Q2 there were an average of 3,562 shops in the estate, compared to an average of 3,662 in the same periods last year.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
GVC Holdings PLC is one of the world’s largest sports betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, PartyCasino and partypoker. The Group owns proprietary technology across all of its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. GVC acquired Ladbrokes Coral Group plc on 28 March 2018 and is now the UK’s largest high street bookmaker, with over 3,500 betting shops. The Group, incorporated in the Isle of Man, is a constituent of the FTSE 100 index and has licences in more than 20 countries, across five continents.
For more information see the Group’s website: www.gvc-plc.com