GVC Holdings hits top form as Ladbrokes Coral says Yes to takeover

FTSE-listed online gambling group GVC Holdings has achieved growth across its verticals despite undertaking significant corporate adjustments in its takeover pursuit of Ladbrokes Coral Plc.

Publishing its audited full-year 2017 results (period ending 31 December), GVC records a 17% increase in group net gaming revenues (NGR) of €925 million (FY2016: €794 million).

For its 2017 trading, GVC highlights the continued strong momentum of its sports division, which contributed an NGR of €663 million (+20%) despite competing against tough comparative 2016 featuring UEFA Euro 2016.

Supporting its strong revenue momentum, with operational refinements and product enhancements GVC delivers a clean 2017 EBITDA of €239 million (FY2016: €170.5 million).

Closing its full-year 2017 accounts, GVC governance declares group adjusted profits of €178 million, up 182% on corresponding FY2016’s €58 million.

Detailing 2017 corporate highlights, GVC governance pointed to the firm’s effective tech integrations across multiple betting jurisdictions, with GVC concluding its platform migration of all key territories.

Furthermore, the company was able to enhance its partypoker proposition and online casino products, supporting its strong sports betting momentum.

During 2017, GVC was forced to dispose of its Turkish ‘Headlong’ business asset, in order to fulfil requirements for its takeover of Ladbrokes Coral Plc.

Yesterday, GVC received the outright approval of both its investor base and Ladbrokes Coral shareholders to complete its takeover seeking to form the FTSE’s leading gambling group.

Updating investors Kenneth Alexander (CEO) of GVC Holdings commented on 2017 results:

“GVC achieved a significant amount in 2017 and as these numbers demonstrate, we have delivered material value from the bwin.party acquisition. It is particularly pleasing that we have been able to produce such strong results at the same time as completing the integration of bwin.party and continuing to enhance our product offering. Our core markets offer attractive growth prospects but we also recognise the opportunity presented by our proprietary technology to create significant synergies through M&A.

The importance of geographic diversification is also a key dynamic given the evolving regulatory backdrop. Thus the acquisition of Ladbrokes Coral Group represents an exciting opportunity, bringing together industry-leading online and retail brands. There will be plenty of hard work ahead, but we are confident that GVC will deliver once again.”