Online gaming drives GVC’s growth in 2019
GVC Holdings has reported a good trading performance in 2019, even though it experienced a setback in retail in the UK.
UK.- GVC Holdings has released its post close trading update for the full year ended December 31, 2019. UK retail fell 11% in the fourth quarter of the year, but the results were affected by the FOBTs regulation introduced last year.
In the fourth quarter, online NGR growth remained strong across all major segments, said GVC. Online NGR growth rose 9%, while sports NGR increased 15% on a constant currency basis.
Kenneth Alexander, chief executive officer of GVC, said: “The group’s operational and financial performance in 2019 has been excellent with the strong momentum reported at quarter three continuing throughout quarter four.
“The performance continues to be driven by our industry-leading technology, products, brands, marketing capability, people and local execution, all of which is underpinned by our determination to spearhead the industry’s approach to responsible gaming.
“As the group continues to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports betting joint-venture in the US, the board is confident that the group is well-placed for a successful 2020.”
GVC could shift tax residency
GVC Holdings has announced that it will hold an Extraordinary General Meeting (EGM) on February 6 in Gibraltar to consider a proposal to relocate the company’s management and tax residency out of the Isle of Man.
The company established its business in Isle of Man in 2010 as the territory had a more favourable tax regime for GVC’s business. A decade later, GVC says that the conditions in the Isle of Man are forcing them to rethink if the territory is as suitable as it was back then.
Moreover, GCV said that if the company becomes a UK tax resident, it should have no material adverse impact on the groups’ effective tax rate or tax cash outflow for the foreseeable future. It would benefit from improved internal/external corporate communications and logistical capacities and would then reduce corporate costs.
