Strong online growth drives GVC Holdings in fourth quarter

Sports betting and gaming group GVC Holdings issued a post close trading update for the year ended 31 December on Thursday, reporting that following a strong final quarter, it expected full year 2018 proforma underlying EBITDA to fall between £750m and £755m, ahead of current market consensus.

The FTSE 100 company said it saw “strong” growth online, with net gaming revenue up 19%, while UK retail like-for-like net gaming revenue fell 3%.

European retail net gaming revenue was ahead 16%, however, with “strong” growth seen in Italy, where net gaming revenue rose 18%.

Total group net gaming revenue was up 9% for the year.

Looking at the fourth quarter, GVC said there was continued momentum in online, despite “very tough” comparatives, with market share gains made in all major territories.

Group net gaming revenue was ahead 5% in the quarter, with online net gaming revenue 15% firmer.

UK retail net gaming revenue was down 3% on a like-for-like basis in the fourth quarter, while European retail net gaming revenue slid 7%.

“The group's performance in 2018 has been excellent with the strong momentum reported at the third quarter continuing into the fourth quarter,” said chief executive officer Kenneth Alexander.

“We are materially outperforming the market and taking share in all of our major territories.

“As the group carries this momentum forward into the new year, and starts to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports-betting joint-venture in the US with MGM Resorts, the board is confident that the group is very well placed for a successful 2019.”