GVC sees H1 revenue fall 11% despite online growth

By Iqbal Johal

Despite an online growth, GVC Holdings has reported a year-on-year revenue decline of 11% for H1 2020 after the coronavirus pandemic impacted on live sport and retail during the period.

Total revenue was down to £1.58bn ($2.07bn) for the six months to 30 June on a reported basis, while net gaming revenue (NGR) also dropped 11%, to £1.62bn.

The operator saw gross profit fall by 13% down to £1bn, with underlying EBITDA decreasing by 5%, to £348.6m. However, profit after tax was flat compared to 2019, staying at £2.1m for H1.

The coronavirus pandemic had a strong impact on the operator’s retail operations, with betting shops closed from mid-March until 15 June in the UK. That resulted in UK retail revenue falling by 53%, down to £277.9m, and gross profit down 52% from 2019, to £203.8m.

The three-month suspension of major sport in the UK meant sports retail revenue decreased by 47%, down to £144.4m. 

However, a fall in retail led to a rise in online activity. Online revenue improved 19% up to £1.21bn, with gross profit increasing 17% to £779.6m. Online sports betting NGR showed a 5% growth, up to £484.5m, despite events being suspending in March.

GVC now estimates full year EBITDA to be in the range of £720m to £740m, and said the strong online performance and reopening of retail operations, means the group is “well placed” for the rest of 2020.

New GVC CEO Shay Segev, said: “Given the unprecedented trading environment, GVC has delivered an encouraging performance in the first half, underlining the strength of our diversified business model and the expertise, adaptability and dedication of our people.”

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