SBC News Voice of the Sports Betting Industry
Publishing its Q3 2018 trading update (period ending 30 September), FTSE100 betting group GVC Holdings details continued corporate growth and progress on its core strategic objectives.
The enlarged FTSE firm continues its strong digital momentum, recording +28% period NGR increase, detailing growth across all its major operating territories.
Boosted by the closing stages of World Cup Russia 2018, GVC sports brands NGR grew 31%, with the company maintaining double-digit growth for its acquired Ladbrokes (+24%) and Coral UK (+29%) digital properties.
Furthermore, a strengthened digital framework has helped GVC Casino/Games brands achieve 19% NGR increase, driven by ‘strong levels of first-time depositors’.
Despite its digital growth, GVC cannot escape tougher UK retail operating conditions, with the company reporting a like-for-like 2% NGR decline. Nevertheless, the firm’s UK retail woes are offset by +24% increase in its European retail assets, as GVC reports strong growth across its Italian assets.
Moving forward, GVC governance highlights significant future prospects for the operator, having secured its US joint-venture partnership with MGM Resorts during the Q3 trading.
GVC will now act as technology and operations lead for MGM Resorts, the US’ biggest land-based casino operator, gaining a significant foothold within the liberalised US sports betting market. The strategic partnership will see GVC develop and launch exclusive platform and digital properties through the ‘playMGM’ brand.
Commenting on the Trading update, GVC Holdings Group CEO Kenneth Alexander said:
“The Group’s performance in the quarter was very pleasing with momentum continuing across the Online and European Retail divisions. As highlighted in our H1 results, we will look to consolidate our position in markets where we are taking market share through the reinvestment of excess returns, and the board is confident in its full-year expectations.
“We believe our sports-betting joint venture with MGM is best placed to be the market leader in the US and we have taken the first steps on that journey with the soft-launch of our sports-betting app in New Jersey. We have also recently announced a series of CSR measures including a multi-million-pound commitment to responsible gambling initiatives and a call for a pre-watershed ban of TV advertising in the UK around football and other live sports.
“The industry continues to evolve and whilst there are challenges there are also many exciting opportunities. Through our proprietary technology, a portfolio of brands, leading product and talent, GVC is well placed to continue to deliver shareholder value.”
