BUSINESS

GVC Holdings, Bet-at-home enjoying double digit delights so far in 2015

TAGs: Bet-at-Home, GVC Holdings

gvc-holdings-bet-at-home-earningsUK-listed online gambling operator GVC Holdings says all its key numbers are up by double-digits so far in 2015, with the exception of its sports betting margin.

GVC issued a trading update on Tuesday covering the first 120 days of 2015. Average daily net revenue came to €658k, up 17.5% over the same period last year. Sports betting daily revenue is up 15.2% to €311k as betting turnover rose 21.4% to €4.6m per day. However, sports betting margins slipped nearly one full point to 8.75%. Non-sports gaming revenue was up 19.7% to €658k.

GVC CEO Kenneth Alexander said the board was “delighted by the strong start” and attributed the decreased sports margin to the punter-friendly results that so many of GVC’s peers have moaned about in their own Q1 results statements. GVC also announced that shareholders could expect to receive a 15.5€cents per share dividend as of Wednesday.

BET-AT-HOME GAINS DESPITE MARKETING CUTS
BetClic Everest Group subsidiary Bet-at-home also enjoyed some double-digit delights in Q1. Gross gaming revenue was up 13.1% to €28.4m while earnings rose 20% to €9.6m. The Frankfurt-listed operator said total gaming turnover rose 18.6% to €587.5m despite a 15.2% decrease in marketing expenses. New acquisition and retention strategies helped boost the number of registered customers by 400k year-on-year to 4.1m.

Bet-at-home says the gains were all the more impressive considering it took a €1.6m hit from the new value added tax (VAT) regulations on electronic service providers within the European Union. The increased turnover also pushed betting fees and gambling levies up €200k to €3.5m. Bet-at-home predicted earnings for fiscal 2015 will top €20m.

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