Fresh off first quarter results that showed profit more than doubling, UK-listed online gambling operator GVC Holdings has reported a “strong” start to its Q2 activities. The Malta-licensed GVC says net gaming revenue averaged €610k per day between April 1 to May 11, an increase of 11% over the same period last year (up 20% in constant currency terms). Sports betting revenue was up around 3% to €283k per day while casino and other revenue was up 19% to €318k. Mobile wagering revenue doubled to €108k.
With happy days here again, GVC is in an expansionist mood. On Wednesday, the company announced it had paid €3.5m for a 15% stake in Betit Holdings, a new joint venture with Betit Securities, the Malta-based firm behind the Thrils.com casino brand and Scandinavian-facing sportsbook Superlenny.com. GVC has a 2017 call option allowing it to acquire the remaining shares in Betit Holdings for a minimum price of €70m. The actual price will be determined by gauging a mix of revenue from regulated and non-regulated markets.
Betit launched in December and now earns daily revenue of €40k per day from a base of 1,600 daily average players. The five-month old company has around 60 employees. Betit Securities is majority controlled by venture capital firm Optimizer Invest, which is owned by former Betsson CEO Henrik Persson, Betsafe co-founder Andre Lavoid and Mikael Harstad.
GVC’s stated goal behind the acquisition is to provide the company with a strategic entry point into the Scandinavian market, in which GVC and its core Sportingbet brand have no significant presence. GVC CEO Kenneth Alexander said the deal would help GVC diversify its revenue streams while demonstrating the company’s “commitment to expansion without undermining the current level of dividend.” Speaking of, GVC told attendees at its annual general meeting on Wednesday that shareholders will be paid their €0.16 per share dividend on Monday (19).