GVC reports steady H1 revenue growth; FOBT stake cut less impactful than expected
GVC Holdings generated net gaming revenue (NGR) of £1.8bn ($2.18bn) for H1, a 61% increase year-on-year in reported group revenue and a 6% rise in pro forma revenue.
Gross profit was £1.1bn, a 55% rise in reported results (which do not include that of Ladbrokes Coral, which was acquired in March 2018) and a 2% pro forma rise.
Underlying EBITDAR for H1 was £376.8m, an increase of 47% reported but 7% fall pro forma.
In its first financial report since maximum stakes for fixed-odds betting terminals (FOBTs) in the UK dropped from £100 to £2, the operator said it was ahead of expectations and only experienced a 10% decrease in UK retail NGR.
Kenny Alexander, GVC CEO, said: “Our online operating model is proving highly effective, building on the sustainable competitive advantages of our wholly owned technology platform, leading product, cutting-edge marketing, leading brands and local execution.
“In UK retail, efficient execution of mitigation plans resulted in a Triennial Review impact that was better than initial expectations, with like-for-like NGR 10% behind last year, prompting a further upgrade to our Triennial Review EBITDA guidance.”
The CEO said GVC’s joint venture with MGM Resorts International, Roar Digital, remains on track for a September launch in New Jersey and highlighted GVC’s responsible gaming commitments made in the first half of the year.
GVC’s share price has risen around 15% in light of its trading update, to £5.62.
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