No BREXIT fears as GVC Holdings posts strong H1 2016 performance

GVC Holdings (GVC) this morning published its half-year trading results (period ending 30 June), detailing a strong H1 performance for both GVC and acquired bwin.party brands which achieved double-digit growth on a constant currency basis.

Updating the market, GVC detailed that pro-forma Net Gaming Revenues (NGR) had reached €439 million, up 8% (H1-2015: €407 million). Detailing individual brand performance, GVC home-brands grew by 15% supported by bwin.party brands growth of  9% on a year on year constant currency basis.

Detailing performance drivers, GVC governance stated that a very strong Q1 2016 opening has been followed by a positive Q2 performance which saw daily NGR reach €2,456K an increase of 11% on the corresponding period in 2015, with growth in constant currency of 16%.

GVC H1 2016 Performance Overview

Corporate performance was supported by an improved sports betting margin on 9.9%, as GVC detailed that it recorded a set of favourable results during the first half of the UEFA Euro 2016 tournament in France.

GVC becomes the first UK-listed operator to publish its results since the UK’s ‘BREXIT’ decision, updating its investors GVC governance commented on the matter:

“From an operational perspective, in the short to medium-term the GVC Board believes that UK referendum result to leave the EU will have little or no material impact on the Group. GVC is a diverse business, operating multiple brands and product verticals, with more than 90% of its customer base outside the UK. The Board is confident that this diversity gives the Group significant flexibility to face any potential long-term challenges that may arise from the UK’s decision to leave the EU.” 

Updating investors on its integration of bwin.party assets, the Governance of GVC declared that it was positive of meeting its corporate targets of securing €125 million in synergies by 2017. The company’s continued progress as a new enterprise was an encouraging factor as GVC Holdings Plc looks to secure its London FTSE main listing by 1 August 2016.

Commenting on H1 corporate performance Kenneth Alexander, CEO of GVC Holdings stated:

“I am pleased to report that in the first half of 2016 GVC has continued to deliver positive trading momentum. Q2 was particularly strong, helped by increasing volumes and favourable sports results during Euro 2016. The restructuring of the enlarged Group is progressing well with synergy targets being achieved, accompanied by strong underlying growth. We are very encouraged by the positive performance to date, however, it is still early days and there is much work to be done, nevertheless, the board remains confident for the remainder of 2016.”