GVC expects strong full year results following online growth

Gambling group GVC Holdings expects its full-year results to show an ‘excellent’ operational and financial performance throughout 2019, as stated in the operator group’s post close trading update for the year to 31 December 2019.

GVC reported that growth in its online division has led the way for what it believes to be a ‘successful 2020’. It revealed that net gaming revenue ‘remains strong’ with the group recording a 9% growth across all major territories, with GVC attributing the growth to both an increase in the number of sports wagers placed and technological development.

GVC Chief Executive Kenneth Alexander said: “The Group’s operational and financial performance in 2019 has been excellent with the strong momentum reported at Q3 continuing throughout Q4.

“The performance continues to be driven by our industry-leading technology, products, brands, marketing capability, people and local execution, all of which is underpinned by our determination to spearhead the industry’s approach to responsible gaming.

“As the Group continues to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports betting joint-venture in the US, the Board is confident that the Group is well placed for a successful 2020.”

The company’s retail division has still continued to feel the effects of last year’s FOBT ruling, with UK retail like-for-like gaming revenue down 11% during Q4. Like-for-like gaming machine NGR also saw a 31% drop as a result of the legislation. GVC has, however, was able to keep NGR flat despite the £2 restrictions as a result of the sustained online momentum.

The Eurobet subsidiary saw a ‘particularly strong’ performance, with a 7% increase in wagers placed, however gross win margin was said to be partly offset due to ‘temporary disruption’ to the virtual offering in Belgium. Wider figures for European retail NGR had grown by 5%, with a 3% growth in over-the-counter wagers placed.

Q4 is also expected to show ‘good progress’ being made in the US market, after GVC secured its multi-year partnership with Yahoo Sports, which it says is ‘representing a significant step forward’ in its US expansion.

The update said: “The deal further enhanced the excellent and growing roster of Roar Digital’s partners in the US. Online revenues grew strongly throughout the quarter and the Group is excited about the outlook for 2020 and beyond.”