GVC posts positive financial results

The company reported that online net-gaming revenue increased 17% in the first quarter of the year.

UK.- GVC Holdings reported in a trading update on Friday that online net-gaming revenue (NGR) increased 17%, which includes a strong volume growth in all territories. While UK retail revenue was flat, European retail revenue was up 2%.

The company said that it doesn’t have estimations yet on the impact of the cut on the maximum stake on fixed odds betting terminals (FOBTs), which was finally introduced in the UK on April 1. Nevertheless, GVC said that it is confident of meeting market expectations on profits for the financial year.

Chief executive Kenneth Alexander said: “This trading update reflects a continuation of the strong trends reported on 5 March 2019, and represents an excellent start to the year. We continue to see good volume growth across all major online brands and territories and we remain very confident of achieving our target of double-digit online NGR growth.

“The impact of soft gross win margins in Italy and the UK was offset by improved margins in other territories, demonstrating the benefit of both geographic and product diversification across the group.

“In UK retail and European retail, improved sports wagering growth helped offset softer sports gross win margins. New B2 machines stakes restrictions were implemented in the UK on April 1, 2019 and we expect it to be several weeks before we can start to assess the impact. At this early stage of the year, the board is confident of delivering EBITDA and operating profit in-line with expectations.”