GVC Holdings has agreed to sell a 50% stake in Spanish retail betting company Sportium.
Spain.- GVC Holdings has revealed that it has agreed to sell a 50% stake in Spanish retail betting business Sportium Apuestas Deportivas. The stake has been sold to Cirsa for €70 million, and the deal is subject to regulatory approval.
GVC’s interest in Sportium emerged after the acquisition of Ladbrokes Coral in March 2018. Sportium is predominantly active in the Spanish retail betting market and in the financial year ending December 31, 2018, it contributed €2.8 million to the Group’s proforma operating profit. As part of the disposal, GVC will become a B2B supplier to Sportium, the company said.
Kenneth Alexander, CEO of GVC Holdings, said: “GVC is one of the leading online gaming operators in Spain with bwin and the disposal of our interest in Sportium enables us to simplify our business in this market. We have enjoyed a good working relationship with Cirsa and are pleased to be able to support them through a new B2B partnership.”
GVC posts online growth
The company reported this week its latest financial results, detailing its operations during the second quarter of the current year. The company posted good results in its online sector, while it also registered double-digit declines in UK retail operations.
The company experienced a 19% decrease in its UK retail performance during the second quarter, which leads to a 10% fall in the first six months if the year. This comes after the introduction of the £2 limit on fixed-odds betting terminals (FOBTs).
GVC’s online gaming and sports betting segments posted growth during the three month period. Online NGR increased 16% in the second water and 17% in the first half of the year, though the latter competed with the FIFA World Cup in 2018.