Digital confidence sees GVC up 2019 profits guidance
Publishing its H1 2019 interim results (period ending 30 June), FTSE online gambling group GVC Holdings details that a strong ‘operational momentum’ has allowed the company to upgrade its full-year corporate guidance.
Citing market share gains across all major territories, GVC records group ‘pro-forma’ revenues of £1.8 billion up 5% on corresponding H1 2018’s £1.7 billion.
During the trading period, GVC’s enlarged multi-regional online gambling division hit £1 billion revenue mark, contributing an underlying EBITDA of £241 million.
“Online momentum remains very strong with proforma NGR 17% ahead, delivering continued market share gains across all major territories. Our online operating model is proving highly effective, building on the sustainable competitive advantages of our wholly-owned technology platform, leading product, cutting-edge marketing, leading brands and local execution, which are all delivered with an unrivalled understanding of the markets in which we operate” said Kenneth Alexander Group CEO of GVC Holdings.
Updating investors, GVC governance details that anticipated UK retail ‘triennial review’ impacts and further incremental online taxes have been mitigated ‘better than expected’ as GVC reports a 7% pro-forma EBITDA decline to £323 million.
Declaring operating profits on a ‘reported basis’, GVC sees its profits before tax fall to £2 million, with the FTSE firm attributing £184 million in exceptional item costs attached mostly to the amortisation of Ladbrokes Coral assets.
“In UK Retail, efficient execution of mitigation plans resulted in a Triennial Review impact that was better than initial expectations, with like-for-like NGR 10% behind last year, prompting a further upgrade to our Triennial Review EBITDA guidance. European Retail proforma NGR was 7% ahead with good growth in all territories”
Effective H1 2019 adjustments, see GVC governance upgrade the firm’s full-year guidance on EBITDA and operating profits by £10 million ahead of expectations.
“The strong trading performance of the Online business means that any potential costs in 2019 associated with the new sports-betting licences in Germany are expected to be fully mitigated. With the outperformance in UK Retail, and Online and European Retail trading in-line with expectations, the Board now expects the Group to deliver full year 2019 EBITDA within a £650m-£670m range.”
GVC Holdings – Interim H1 2019 – Performance Overview
Source: SBC News