GVC Holdings PLC Trading update (2581K)

TIDMGVC

RNS Number : 2581K

GVC Holdings PLC

06 July 2017

6 July 2017

GVC Holdings PLC

("GVC" or the "Group")

Trading update

GVC Holdings PLC (LSE:GVC), the multinational sports betting and gaming group, is pleased to announce a trading update for the six months to 30 June 2017, together with Q2 KPIs.

Key highlights:

   --      H1 2017 Group daily NGR up 10% (+12% constant currency) vs pro forma(1) H1 2016 
   --      H1 2017 NGR EUR484.8m up 10% vs H1 2016 pro forma(1) EUR441.8m (+11% in constant currency) 
   --      Q2 2017 Group daily NGR up 8% (+10% in constant currency) vs Q2 2016 
   --      Q2 2017 underlying Group daily NGR up 15% vs Q2 2016 (excluding Euro 2016 revenues) 
   --      Kalixa disposal completed 
   --      Trading in line with management expectations 
 
                 Q2-2017         Q2-2016         Change  Constant  H1-2017        H1-2016         Change  Constant 
                                                                   181            182 
in EUR000s       91 days         91 days                 currency   days           days                   currency 
                 --------------  --------------  ------  --------  -------------  --------------  ------  -------- 
Sports Brands 
Sports wagers            12,113          12,394    (2%)      (0%)         12,509          12,630   (1%)      1% 
Sports margin             10.1%            9.9%                             9.8%            9.2% 
Sports NGR                  945             952    (1%)        1%            947             898    5%       7% 
Gaming / 
 other                    1,030             890     16%       18%          1,015             864   17%      19% 
                 --------------  --------------  ------  --------  -------------  --------------  ------  -------- 
Total NGR 
 per day                  1,976           1,843      7%        9%          1,962           1,762   11%      13% 
 
Games Brands                616             547     13%       15%            616             569    8%      10% 
B2B & Non-core               90              96    (5%)      (4%)            100              97    4%       7% 
 
Group NGR 
 per day                  2,682           2,485      8%       10%          2,678           2,428   10%      12% 
Group NGR 
 EURm                     244.1           226.2      8%       10%          484.8           441.8   10%      11% 
 

Q2 KPIs

The Group enjoyed another strong quarter with daily NGR +8% on the same period last year and +10% in constant currency. This was achieved despite the absence of a major football tournament, reflecting continued good momentum across the business. Excluding Euro 2016 revenues, daily Group wagers and NGR were +10% and +15% respectively versus Q2 2016.

Within Sports Brands, the gross win margin for the period was 10.1% (9.9% Q2 2016), in line with our expectations of the long-term sustainable average. Daily wagers were broadly flat in constant currency, but as noted above, this was against a comparative period that included the Euro 2016 tournament - adjusting for this, underlying wager growth was 10%. Gaming daily NGR from Sports Brands continued to benefit from improved product and CRM, increasing +16% (+18% constant currency) on Q2 2016.

Games Brands daily NGR increased 13% (+15% in constant currency) over the same period last year, the highest quarterly growth reported by the division since the acquisition of bwin.party in February 2016. Growth is being driven by partypoker and an improving performance from the Group's standalone casino brands.

H1 2017

Group NGR for the first six months rose 10% to EUR484.8m (+11% in constant currency) versus pro forma(1) 2016. The disposal of Kalixa was completed 31 May 2017 and during the first half contributed revenues of EUR6.1m against EUR7.6m for pro forma H1 2016.

Kenneth Alexander (CEO) said:

"The Group continues to perform well with positive momentum across our core businesses. Achieving Q2 constant currency NGR growth of 10% in the absence of a major football tournament is particularly pleasing. As demonstrated at our recent Capital Markets Day, the organic opportunity is significant, whilst we are also well positioned to pursue further acquisition opportunities should they arise. This combined with an increase in marketing investment in the second half to more normalised levels gives the Board confidence of GVC delivering another year of strong progress."

(1) Assumes bwin.party acquired 1 January 2016

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.

- ends -

For further information:

 
 GVC Holdings PLC 
 Kenneth Alexander, Chief Executive    Tel: +44 (0) 
  Paul Miles, Chief Financial          1624 652 559 
  Officer                              Tel: +44 (0) 
  Nick Batram, Head of Investor        20 7337 0100 
  Relations & Corporate Strategy       Tel: +44 (0) 
                                       20 7337 0110 
 

Media enquiries:

 
 Bell Pottinger 
 David Rydell, Laura Jaques    Tel: +44 (0) 
                               20 3772 2500 
 

About GVC Holdings PLC

GVC Holdings PLC is a leading e-gaming operator in both B2C and B2B markets. GVC has four business segments with a number of brands; Sports Brands (bwin, Sportingbet, Gamebookers), Games Brands (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), B2B and non-core assets. GVC acquired bwin.party digital entertainment plc on 1 February 2016. The Group is headquartered in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 18 countries.

For more information see the Group's website: www.gvc-plc.com

This information is provided by RNS

The company news service from the London Stock Exchange

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July 06, 2017 02:00 ET (06:00 GMT)