Gvc Share Discussion Threads

[timanglin] 07/7/2017 09:16

'Cash has increased to €367.0m at 31 December 2016 from €28.2m following the acquisition of bwin.' From the cash flow statement of last year RNS. Net debt was about Euro 130m. Cash generation of about euro 34m a month in 2016 as bwin bought in Feb 2016. Old debt paid off and new debt of euro 250m in February, adding approx Euro ?120m to gross cash. Add 75m revolver debt available. Make a BIG assumption that average cash generation for the first six months 2017 is euro 38m because of less debt payments and more NGR makes extra euro 228m to the end of June 2017. Add Kalixa sale euro 28m. Total gross cash 367 plus 120 plus 228 plus 28 plus 75m revolver drawdown available equals approx euro 815m gross cash available including revolver. Take away 65m as unexpected expenses not known about. Very rough back of the envelope calculation of euro 750m gross cash available for spending on new acquisitions. Pretty good position to be in? Please advise if errors

[sogoesit] 07/7/2017 08:23

Sooo, at a PEG of 1.00 we are worth £10 to £15 between here and end 2018.
Okaaaayyy...

[garycook] 07/7/2017 04:42

Looking promising here.Has I have always thought with KA at the helm.Whether GVC are taken over or not, the share price is worth around £10 atm.I would rather see GVC progress,and acquire another business and enter the FTSE 100,has long as investors receive at least a 5% dividend income.Otherwise if GVC are taken over then so be it.
2 bargain growth stocks I’d buy right now

Peter Stephens | Thursday, 6th July, 2017 | More on: GVC PTEC
Image: Public domain

Finding growth stocks trading at bargain prices is never easy. After all, companies which offer above-average growth potential usually see their share prices marked up by optimistic investors. However, even with share prices generally high at present, there could be a number of compelling investment opportunities within a range of sectors. Here are two companies which could be worth a closer look.
Strong performance

Reporting on Thursday was sports betting and gaming company GVC (LSE: GVC). Its first half results show that the strategy pursued by the business is delivering an improved performance. For example, daily non-gaming revenue increased by 12% at constant currency, a performance in line with management expectations.

Its second quarter performance was particularly impressive, with non-gaming revenues rising 10% in constant currency despite a lack of a major football tournament in the current year. This reflects good momentum in the business and, with the impact of Euro 2016 excluded from the figures, non-gaming revenue was 15% higher in the second quarter of the year.

Clearly, the sports betting and gaming sector is becoming increasingly competitive. This could lead to sector consolidation, and with GVC trading on a relatively low valuation it could become a bid target. For example, due to it being forecast to post a rise in earnings of 23% in the next financial year, it trades on a price-to-earnings growth (PEG) ratio of just 0.5. This suggests that there is significant upside potential on offer over the long run.

Additionally, with the company yielding 3.7% from a dividend which is covered 1.7 times by profit, its income potential is also high. At a time when inflation is moving higher, this could open up the company’s appeal to a wider range of investors, which could act as a further catalyst on its share price.

[maddox] 06/7/2017 23:45

Hmmm GVC a takeover target - an interesting thought....

IMHO when the US market(having first kicked out all the foreign competitors) finally opens up fully to online gambling - they will undoubtedly try and catch up. However, being at a massive disadvantage to the now even more expert international online gambling firms - will have no option but to seek to acquire them.

It could be a feeding frenzy.

Anyway, as I said just a thought....

[foot in mouth] 06/7/2017 22:21

Numis 06/07
Reiterates
Buy
Buy
975.00p
Peel Hunt 06/07
Reiterates
Buy
Buy
1,000.00p
Berenberg 04/07
Reiterates
Buy
Buy
920.00p

[festario] 06/7/2017 21:14

Mac, Turkey have been trying to do that for many years, and they have tried to disrupt GVC and persecute gamblers many times. The penalty for gambling in Turkey is very serious for the punter.... yet still the play in massive numbers.However, whilst the threat exists, GVC continues to diversify and open new markets. Therefore the reliance on Turkey ebbs away more and more, every day.

[macarona] 06/7/2017 20:47

Hello fellow gvc holders,

I am a holder and recently read an article about turkey planning on banning illegal gambling within two years.
Could this be the reason for the oppressed share price?

hxxps://calvinayre.com/2017/07/06/business/gvc-h1-growth-despite-lack-football-tourney/

Any views ?

Mac

[mylands] 06/7/2017 15:03

Fest

But can you see this going for less than £10? I can't and that would compensate for quite a few years of dividends.

[mylands] 06/7/2017 14:45

From the Yahoo finance write up:

'This could lead to sector consolidation, and with GVC trading on a relatively low valuation it could become a bid target.'

Now that is the first time I have read that GVC is a possible bid target.

[gersemi] 06/7/2017 14:34

'Sport betting and gambling company GVC Holdings (GVC) reported that net gaming revenue (NGR) was up 10 per cent in the first half of the year to €484.8m, which it noted was without a major football tournament which signals good momentum in the business. In the sports brands business the gross win margin for the period was 10.1 per cent, though daily wagers were broadly flat. It completed the disposal of Kalixa during the period which added €6.1m to revenues. Shares dipped less than 1 per cent in early trading. Buy.'..IC

[noujay] 06/7/2017 14:31

The integration according to information in the March update is going well and they are commencing some of the chunkier aspects upon cessation of the football season which was towards the end of May so I would imagine that they are moving very quickly now in anticipation of the recommencement in August.Re-reading the Final Results statement dated March 23rd gives a pretty clear picture on that side and given the trading update shows financial progress and better margins etc I would take it that the integration is going on schedule.

[conundrum] 06/7/2017 13:39

Write up coverage of GVC, see below

[cheshiremoggie] 06/7/2017 10:52

Well well. GVC outperform even on trading updates!

An excellent update but completely expected so I'm not that surprised about the muted share price reaction, although I'm hoping we might head back over £8 when it has all been digested.

No dividend - as expected by me at least.

Sell in May and go away might well be good advice this year as I don't see anything happening here until the level of dividend is announced in September. Any upside on that and the share price could fly.

The most important thing for me as a shareholder is an announcement that the integration is complete. GVC apparently have over 1000 IT staff and a huge number of those will be working on the most important project GVC has.
I'm not sure people here realise the scale of the integration and the execution risk that is still present.
Completion of the project opens up so many more opportunities, not least is the chance to integrate more acquisitions in weeks rather than months.

Given the huge resources going into integration, I can't see an acquisition until 2018, when all the ducks for the business will be in a line.

GVC should really be looking for big, badly run companies, where there is the potential for a shakedown to produce a massively improved performance. 888, by all accounts, is well run and so any buyout won't produce the improvement of the Sportingbet or Bwin purchases.

Wake me up in September...

[mylands] 06/7/2017 10:49

GC

Good idea but I am happy to read Cats posts. They aren't libellous, fake news etc.

[garycook] 06/7/2017 10:38

mylands I have CW Filtered.

[mylands] 06/7/2017 10:33

CatsW

If I were to follow your advice, I would be a poor man. Can't count the number of times over the years that others have posted similar ill considered analysis.

Bye bye.

[catswhiskas] 06/7/2017 10:02

Sell the facts !

[trentendboy] 06/7/2017 09:44

888 is the obvious one but might be some decent private firms out there. SPO for example have good US licences if they want to build that area.

[timanglin] 06/7/2017 09:39

Interesting, a good trading update, however no mention of cash levels and continued statement about acquisitions, maybe connected. You wouldn't want to brag about about how much cash you have if you are considering an acquisition. I think it is a matter of waiting for events. Dyor imho

[shayadfn] 06/7/2017 09:35

Looks like gvc management have pulled a sneaky one, I was expecting the trading results tomorrow- I have been adding over the last few days, may add more

[trentendboy] 06/7/2017 08:58

Back in Blue

[mylands] 06/7/2017 08:57

GC

Well analysed. MM's scaring punters into selling their stock. Best thing to do is not watch the screens, just enjoy the RNS.