GVC reports good third quarter thanks to 'quick wins'
(ShareCast News) - Sports betting and gaming group GVC Holdings updated the market on its third quarter performance on Thursday, reporting a 10% improvement in group daily net gaming revenue to €2.65m, or 13% in constant currencies.
The FTSE 250 owner of brands such as 'Foxy Bingo' said underlying daily net gaming revenue was ahead 18%, or 21% at constant exchange rates.
Broken down into divisions, GVC's sports brands managed an 11% uplift in daily net gaming revenue to €1.97m, or 14% at constant currencies, while its games brands saw daily net gaming revenue grow 15% to €0.61m, or 17% at constant currencies.
The board said the result was "particularly pleasing" as the corresponding period last year was boosted by the final stages of the UEFA Euro 2016 tournament.
Within sports brands, GVS said the gross win margin for the period was 11.2%, up from 10.5% year-on-year and ahead of its expectations of the long-term sustainable average of around 10%.
Daily wagers were 4% ahead in constant currency, against the comparative period that included the Euro 2016 tournament.
Adjusting for that, the company said underlying wager growth in constant currency was 8%.
The strength of the underlying wager growth was said to be a reflection of the success of the new bwin marketing campaign launched in August.
In its games brands, GVC said partypoker net gaming revenue grew 48% year-on-year, continuing to benefit from product improvement and increased marketing investment.
Casino brands net gaming revenue also grew in the third quarter, while bingo returned to underlying growth during the period.
Declines were seen in business-to-business and non-core operations, which GVC said reflected the disposal of Kalixa in May.
The group also enjoyed a "strong start" to the fourth quarter, the board claimed, albeit it was just over a week into the period.
"Underlying growth in the third quarter represents the highest rate achieved since the acquisition of bwin.party in February 2016," said GVC CEO Kenneth Alexander .
"The quick wins made in 2016 have been supplemented by further and continuous improvements across all areas of the business."
Alexander said GVC was operating in an industry with "significant opportunities" and challenges.
"The combination of our talented employees, proven technology and strong brands, gives me confidence that we can continue to drive shareholder value."