GVC increases full-year EBITDA target as H1 online revenues rise 18%
London-listed operator insists strong online performance will offset potential regulatory costs in Germany
GVC Holdings today upgraded its full-year EBITDA target after reporting an 18% constant currency increase in online net gaming revenue for H1.
Online revenue for the period reached £1.05bn, up from £895m in 2018, following a 19% increase in sports revenues to £462m and an 18% rise in gaming revenues to £575m.
Online gross profit hit £664m in H1, marking an 11% increase from the 2018 figure of £597m.
The London-listed operator now expects to deliver 2019 full-year EBITDA between £650m and £670m, a further £10m ahead of previous guidance.
UK online NGR rose 13% from the same period last year, while GVC also made strong gains in Germany (+23%), Australia (+48%), Italy (+15%) and Brazil (+52%) during H1.
UK growth was reportedly driven by Ladbrokes.com as GVC hailed the “re-invigoration of the brand”, adding ‘The Nation’s Favourite’ campaign had been very well-received by customers.
GVC CEO Kenny Alexander said: “The Group’s performance in the first half was extremely pleasing.
“Online momentum remains very strong with proforma NGR 17% ahead, delivering continued market share gains across all major territories.
“Our online operating model is proving highly effective, building on the sustainable competitive advantages of our wholly owned technology platform, leading product, cutting-edge marketing, leading brands and local execution, which are all delivered with an unrivalled understanding of the markets in which we operate,” he added.
The operator highlighted concerns in Germany going forwards after discussing the new online sports betting licence regime with Hesse, the state overseeing the regulatory process.
GVC expects to continue to offer online sports betting and gaming in Germany in the period before the new regulatory framework is introduced in 2021.
“The strong trading performance of the online business means that any potential costs in 2019 associated with new sports betting licences in Germany are expected to be fully mitigated,” GVC told investors.