Pre-tax profit doubles at GVC
News on 20 Sep 2016
News on 20 Sep 2016
The GVC online gambling group has posted impressive H1-2016 numbers, committing to resuming dividend payments next year, and revealing that its purchase of rival Bwin.Party has resulted in higher potential organic growth.
To fully exploit that growth, the company plans to hike marketing budgets, management revealed.
Highlights from the report include:
* Pro forma NGR up 8 percent y-o-y to Euro 441.8 million, 12 percent in constant currency;
* Clean EBITDA of Euro 91.2 million with pro forma Clean EBITDA growth up year-on-year by 42 percent;
* Adjusted PBT of Euro 51.3 million (H1-2015: Euro 21.8 million )
* Net debt as at 30 June up at Euro 165.1 million (Euro 154.3 million as at 24 July 2016 re-financing)
* Half-year marketing spend of 21 percent of NGR;
* Mobile sports wagers up 55 percent, casino and games up 98 percent;
* Integration of bwin.party on target to secure Euro 125 million in annualised synergies by end of 2017;
* Significantly strengthened senior management
* Signed largest B2B deal to date with one of the UK’s best known sports betting brands, Betfred;
* Confirmation of New Jersey gaming licence.
The company said that post-reporting period highlights have been its admission to the Premium segment of the Official List 1 August (FTSE 250 inclusion 19 September), and the achievement of a new Euro 250 million financing facility secured at substantially reduced cost to current facilities.
Management report that current trading and outlook is favourable:
* Average daily NGR for the 11 weeks to 15 September up 12 percent on a pro forma basis (15 percent in constant currency);
* Organic growth opportunities from bwin.party acquisition have been greater than expected;
* Committed to resumption of dividend payments in 2017;
* Confident of achieving a result at the upper end of market expectations for 2016.
Kenneth Alexander, CEO said:
“I am delighted to report another period of significant growth. It is GVC’s combination of hardworking, talented people and a unique proprietary technology platform that has allowed us to achieve so much in such a short period.
“The Group operates in a highly competitive, increasingly regulated and taxed environment, GVC has never been better placed to face these challenges. Indeed, we believe the organic growth potential of the Group is now greater than originally anticipated at the time of the bwin.party transaction acquisition.”
The company announced separately that Chief Financial Officer Richard Cooper is to step down next February, and will be replaced by Paul Miles, presently finance chief at payday lender Wonga.
Miles, a chartered accountant, has held a number of senior finance roles in regulated industries, encompassing international and online operations. Previous roles include Group Financial Controller at insurance group RSA Group plc and Acting Group Finance Director of Phoenix Group plc, the FTSE250 life assurance operator. Paul joined Wonga as CFO in 2014 as a key member of an executive team brought in to restructure the business.
