GVC Holdings sees strong online revenue growth in 2018
GVC Holdings has released its financial report for the first half (H1) of 2018. Particular highlights are growth in both online revenues and market share.
Net gaming revenue at the group grew by 8% in the six months of the year up to June. That meant a 17% net gaming revenue increase on the year, up to £1.7bn.
Online revenues jumped even further, up 18% overall and 19% for sports brands. Performance in the UK was relatively poor however, with adverse weather conditions in the first half of the year causing many events to be cancelled and resulting in a loss of earnings.
That was offset by the FIFA World Cup this summer. That tournament helped the group to see a large increase in gross win margins and volumes, especially in Italy, where net gaming revenue was up 29%. However, GVC reported that it has seen its market share grow in all territories.
Cost savings of £30m from the acquisition of Ladbrokes Coral also contributed to the results. That deal was completed on 28 March and the integration is progressing well. Cost synergies of £130m are expected by 2021.
In a series of updates, GVC noted its deal with MGM Resorts will see it create a leading brand in the newly opened US market. Current trading is strong, while further efforts and funds will be directed to marketing, to help drive further market share gains.
Speaking about the results, Kenneth Alexander, CEO of GVC Holdings, said:
The performance of the GVC Group in the first half has been extremely pleasing in what has been a very busy period. Strong momentum in Online and European Retail has continued, and a positive World Cup helped improve trends in UK Retail in the second quarter. The acquisition of Ladbrokes Coral completed on 28 March and the integration of that business is progressing well. We have now identified capex synergies of at least £30m in addition to the £130m cost synergies and we are well placed to deliver those savings while driving top line growth. We are gaining market share in all our key markets and we will look to reinvest to further strengthen our market position.– Kenneth Alexander, GVC Holdings CEO