GVC reports strong online growth amid £30m cost savings on LCL deal
UK operator reveals an 18% uptick in H1 online revenues and gains market share in all territories
UK gambling giant GVC Holdings has reported an 8% year-on-year increase in H1 2018 net gaming revenue (NGR) to £1.7bn.
Underlying operating profits were also up 17% to £278m as EBITDA rose by 11% at £349.5m, with the operator reporting “good momentum” in online and market share gains in all territories.
Online NGR increased by 18% in H1 with sports brands up 19% and gaming brands up 13%, while the group identified an extra £30m in cost savings from its £4bn purchase of Ladbrokes Coral.
Analyst group Berenberg said: “The 18% year-on-year increase in online NGR in H1 is a clear sign of market share gains, in turn a result of the company’s continuous efforts in product development and marketing.”
GVC has also enjoyed a strong start to Q3, according to Berenberg: “From 1 July to 2 September, GVC’s NGR rose by 14%, with online growing at a staggering 30% while legacy GVC brands were up by 52%.
“It is safe to say GVC has continued to gain share, even in the critical UK market where Coral.co.uk grew NGR by 28%.”
Q3 saw GVC establish a 50/50 joint venture with US giant MGM Resorts to create a sports betting and online gaming platform in America.
GVC CEO Kenny Alexander
Kenny Alexander, GVC CEO, said: “The performance of GVC 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,” he added.
GVC also appointed Pierre Bouchut to the board as a new independent non-executive director, it was announced this morning.