GVC overcomes tough Euro 2016 comparison to post 10% Q2 growth
NGR from the operator’s gaming brands climbs 15% after improving partypoker performance
GVC this morning reported a 10% rise in daily net gaming revenues (NGR) for Q2, with the operator’s gaming arm in particular enjoying strong growth.
Daily NGR in the 91-day period increased 10% year-on-year to 1,976 in constant currency (8% reported), following a 15% rise from the operator’s games brands.
The figure was the highest quarterly growth reported by the division since the acquisition of bwin.party in February 2016, with growth driven by partypoker and an improving performance from the Group’s standalone casino brands.
Gaming revenues from its sports brands was also up 18%, while sports revenues increased 1% year-on-year against a tough Euro 2016 comparison.
Excluding Euro 2016 revenues, daily group wagers and NGR were +10% and +15% respectively versus Q2 2016.
“The Group continues to perform well with positive momentum across our core businesses,” said Kenny Alexander, group CEO.
“Achieving Q2 constant currency NGR growth of 10% in the absence of a major football tournament is particularly pleasing.
“As demonstrated at our recent Capital Markets Day, the organic opportunity is significant, whilst we are also well positioned to pursue further acquisition opportunities should they arise.
“This combined with an increase in marketing investment in the second half to more normalised levels gives the Board confidence of GVC delivering another year of strong progress.”
The operator’s H1 revenues grew 10% to €484.8m.
Regulus Partners said in an analyst note the results demonstrated “continued operational turnaround from a low base,” with the firm now “tapping into secular online growth and benefiting from a stabilising poker environment”.
“From an operational perspective, low double digit top-line growth therefore appears eminently achievable in the medium-term,” the note added.
However Regulus raised concerns about the level of revenues coming from Germany (23%) and Turkey (12%), with the latter facing new restrictions on online gambling operators.
Regulus added: “With such an ‘interesting’ regulatory mix, GVC’s ability to participate in major M&A is more complex than a quick look at geographic fit, technology expertise and synergy opportunities might suggest.”