GVC raises profit guidance thanks to online revenues
The UK-based operator GVC Holdings has reported an increase in profit guidance as its online revenues have improved.
UK.- GVC Holdings has announced in its third quarter trading update that it is raising its profit guidance for the full year. This improvement is due to an increase in online gambling revenues, which are up in all territories. However, GVC’s net gaming revenue fell 2% year-on-year in constant currency in the third quarter.
GVC said that online net gaming revenue has improved 12% across all territories. After adjusting for the impact of the men’s World Cup in 2018, online net gaming revenue was 14% ahead. The operator also said that sports betting was 5% ahead.
Retail in UK continues the downward trend from the second quarter thanks to the cut in the maximum stake in FOBTs that started on April 1. UK retail revenue fell 18%, while net gaming revenue decreased 1% if constant currency isn’t taken into account. A further 41 shops were closed during the period, taking the total closed as a result of the Triennial Review to 198. The group expects to close a total of up to 900 shops across the next two years.
The CEO’s word
Kenneth Alexander, CEO of GVC, said: “I am delighted that the Group’s financial performance has allowed us to upgrade our full year EBITDA expectations again. Online momentum remains strong across all major territories, with NGR up 12% in the quarter despite the prior period containing part of the World Cup. This performance continues to be driven by our industry-leading technology, products, brands, marketing capability, and people.
“The launch in September of the BetMGM app in New Jersey, powered by the GVC technology platform, is a key milestone, and our US sports-betting joint venture with MGM Resorts remains very well-placed to capitalise on the US sports-betting opportunity. The integration of the Ladbrokes Coral businesses is progressing well with the migration of the Ladbrokes, Coral and Gala online brands due to commence in Q4 and complete by the end of H1 2020.”
“Finally, we were delighted to recently launch the GVC Global Foundation, which will coordinate and support GVC’s CSR initiatives around the world. This should be taken as a clear sign of our determination to spearhead the gambling industry’s approach to CSR initiatives, particularly with regard to responsible gambling.”
