Gvc Share Discussion Threads

[maddox] 17/1/2017 21:06

This may in fact have been a rare mistake by GVC.

If you haven't designed your IT platform and services to operate on a B2B basis it makes life very difficult. Especially as as soon as you've set your client up on your platform they'll want to change it - it then becomes a huge distraction and if development resources are constrained(when are they not)very divisive. Your internal product teams find that they cannot deliver on their own objectives because resources are diverted to supporting what is, hang-on, a competitor! Also, if won on a competitive tender there is a good chance that the running costs have been underestimated and the contract is barely profitable.

All in all, this is probably a good thing, no compensation paid, no legal battle - mistake recognised early and fixed.

No direct insight, just speculating - based on personal experience.

Regards Maddox

[nurdin] 17/1/2017 20:02

I suspect if it had been a very profitable deal,Kenny would have hung onto to it at any cost.This exit allows them to concentrate on the more urgent and perhaps financially more lucrative issue of integrating BPTY into the GVC folds.

[nurdin] 17/1/2017 19:43

"But on Tuesday, eGaming Review reported that the deal was toast and the companies subsequently issued a joint statement saying they had agreed to terminate the agreement “by mutual consent.”

They have issued a joint statement to whom? Perhaps we will see an RNS tomorrow?

[diviincomesearch] 17/1/2017 19:34

Hmmm...surprising either way though. To be cut off 1 year in. What can be going on?

Without penalty clauses seems the strangest part for me. If we can't supply the goods then they'd stuff us over.if they had breached contract then they would surely be liable for something.

Some clarification would be most welcome from the board. Not to have an RNS for a halt in the contract for something that was announced with one and much aplomb is unsettling.

[festario] 17/1/2017 19:06

It can't be a 'material' amount, to the deal would have been RNS'd, and again if it fell through.It's a big diversified group now, and one element can't hurt 'too' much.I don't think the dividend will be anywhere near as low as mentioned a few posts back. I'm thinking 35p this year.

[nurdin] 17/1/2017 18:24

How much would that impact GVCs profits?

[brownie69] 17/1/2017 16:33

Word in the industry is that GVC and Betfred are not proceeding on the previously announced plan for GVC to operate the Betfred site on a B2B basis. No detail on why.

[velod] 17/1/2017 15:54

Don't like this revisiting of the sub 609p area (not because of drop in value of holding) - this is the third revisit - there's a saying, a maxim, about continually revisiting a low after bouncing away from it. It has bad connotations, but not saying what that is.

. . . Instead I claim XD immunity as the current excuse and will delay opinion until out of XD - should the 601-609p vicinity reoccur after that date, or nothing worse happens over the next couple of weeks.

EDIT: . . Now 15 minutes or so to go before close. In previous 2 visits to sub 609p vicinity it never closed at those levels, always significantly above. That was good. . . . But now fingers and toes crossed that it does not close tonight, in that area for the first time, since this continual retrace from the highs of September last.

[cheshiremoggie] 17/1/2017 15:46

Well, well, back down to around £6, who would have thought back at the heady heights of £7.80.

My view, fwiw, is this :

I understand that dividends this year are expected to be around €0.25 or about 21.5p
At £6 the yield is therefore 3.6% - not huge for a company the market has been traditionally suspicious of.
At £7.8 the expected yield was 2.75%.

Of course we long term holders might expect a €0.30 divi - GVC has always beaten market expectations - so that would be at £6 - 4.33%, at £7.80, 3.33%

Even at €0.3 divi the yield at £6 isnt traditionally great for GVC although its quite in line with peers.

All sounds a bit depressing, doesn't it?

The good news is that during 2017 the financing changes and the cost cutting will (allegedly) save something over $150mpa.

Dividends really ought to rocket in the next 2 years.

If we get €0.40 in 2018 then the current yield would suggest an share price of £9.60+

A lot of speculation and unknowns there but, IMHO, the share price is actually this low because the expected yield isn't that great.
If and when those expectations are beaten then, IMHO, we will see a rapid re-rating.

CM.

[nurdin] 17/1/2017 15:34

Yes a bit of a brainstorm there..I fully deserve to be told off!

As a punishment to myself,I have added via a SB long.

[rhuvaal2] 17/1/2017 15:29

topped up @ 605.95

[fizzypop] 17/1/2017 15:13

Nurdin went XD on 5 Jan, payday 14 Feb. Where have you been?

[nurdin] 17/1/2017 15:11

Oops sorry..you are right.

[festario] 17/1/2017 15:08

Nurdin, it was Xdiv about 10 days ago.

[festario] 17/1/2017 15:05

Bargains galore, just wish I'd sold some at 650p to 750p in order to increase my shareholding.

[mylands] 17/1/2017 14:51

Who would have thought we would be back at the £6 level again, after reachinb nearly £8? Still no loss, no gain, without selling, so I will continue to hold, especially as we are back on the dividend gravy train.

[redips2] 17/1/2017 14:46

A small toe in the water here @ 6.095

[cheshiremoggie] 17/1/2017 13:09

Since GVC is not affected in any measurable sense by Brexit because 90% of business is outside the UK and the 10% that is here May or May not be affected at all, what May has to say about Brexit May not really matter.

Of course I May be wrong.

CM.

[velod] 17/1/2017 12:38

Monitored the share price during Theresa May's important 45 minute speech. It rose (marginally). Wonder if that's translatabe to the wider market's assesment of the UK to a more positive perception in the coming days

[plasybryn] 16/1/2017 19:36

Sorry guys. Had 17th January written down in my notes but clearly that was wrong.
Thanks for putting me straight.

[festario] 16/1/2017 11:57

It will have a very marginal negative effect on U.K. bookies, but not a scratch on GVC

[piwood] 16/1/2017 11:27

Are there any views on the proposed changes to the UK horse racing levy ?

[shayadfn] 16/1/2017 10:20

Divi gets paid on Valentine's day 14 Feb, if you buy gvc tomorrow on a T20 trade, then the divi may cover your purchase, depends how your broker pays you.