SBC News Voice of the Sports Betting Industry
Issuing a corporate trading update, the governance of FTSE-listed GVC Holdings Plc (GVC) has reported a resilient Q4 2016 closing with the operator able to cushion ‘punter friendly’ results and adverse currency fluctuations recorded during the period
Despite the tough conditions, GVC was able to record growth throughout its top-line metrics, reporting growth in its group sports wagers, operating margin and Net Gaming Revenue (NGR). GVC governance stated that its resilient performance, as a testament of the firms diversified international strategy.
Having closed a strong final quarter, GVC Governance anticipates declaring a full-year 2016 pro-forma group NGR of € 894 million, slightly ahead of the firm’s previous guidance. Pro-forma group EBITDA is expected to towards the ‘upper end of market expectations’ with corporate net-debt declared at approximately €140 million. (GVC will publish its full year 2016 results on Thursday 23 March)
Commenting on corporate performance GVC Chief Executive Kenneth Alexander stated
“2016 was a landmark year for GVC in which the Group undertook its largest and most ambitious acquisition to date, that of bwin.party. Through the tremendous hard work of our people, we achieved and exceeded many of our goals and once again we were able to create significant shareholder value. In addition to returning bwin.party to growth, we remain on target to secure €125m of synergies by the end of the current year.
“Our strategy of pursuing international diversification and scale, through the leverage of our proprietary technology and talented people, is more relevant today than ever. We are excited about the organic opportunities for the Group in 2017 and beyond, but also remain alive to further industry consolidation.”
Further to its trading update, GVC governance issues a ‘refinancing note’, detailing that the company had now repaid its full outstanding loan of €386 million to Cerberus Business Finance, allocated through the ‘drawdown’ of a €250 million loan from Nomura International.
Under Nomura terms, GVC expects to pay lower group interest rates of circa €40 million throughout 2017.
