GVC H1 revenues boosted by Euro 2016 and bwin.party acquisition
Operator reports an 8% year-on-year rise in net gaming revenue on a pro forma basis
GVC Holdings today reported an 8% rise in pro forma net gaming revenue (NGR) during H1 2016, driven by its bwin.party acquisition and favourable Euro 2016 results.
In a trading update this morning, the operator reported total NGR of ?430m (?358.8m) for the six months ended 30 June, compared to ?407m (?339.6m) in H1 2015.
Total NGR on a reported basis for H1 2016 was ?388m, a 223% YoY increase on the same period in 2015, boosted by the acquisition of bwin.party in February this year.
First half results were helped by a strong performance in Q2, which saw NGR from increase by 16% compared to the same period last year.
The majority of NGR growth in Q2 came from the legacy GVC brands, such as Sportingbet and Betboo, which grew by 24%, while the bwin.party brands felt a 12% uplift.
Sportsbook was the best performing vertical with a 29% increase in NGR while gaming also saw a double-digit (11%) rise.
GVC benefited from a higher sports margin in the period, 9.9% compared to 7.9% in Q2 2015, and favourable results during the first half of Euro 2016.
The firm also said the UK referendum result would have “little or no material impact” on the Group in the short to medium-term, with more than 90% of its customer base outside the UK.
“I am pleased to report that in the first half of 2016 GVC has continued to deliver positive trading momentum,” said CEO Kenneth Alexander.
“The restructuring of the enlarged Group is progressing well with synergy targets being achieved, accompanied by strong underlying growth.
“We are very encouraged by the positive performance to date, however, it is still early days and there is much work to be done, nevertheless, the board remains confident for the remainder of 2016.”
Highlights during Q2 included the 10-year platform deal it struck with Betfred, which will see the British bookmaker migrate its online sportsbook and gaming business to the GVC platform.
The operator was also granted admission onto the Premium Segment of the London Stock Exchange, a move that sees GVC Holdings on the verge of a FTSE 250 listing.
At the time of writing, GVC Holding share price was up 2.61% to 630p on the London Stock Exchange.