BUSINESS

GVC Holdings makes £900m bid on bwin.party, H1 net gaming revenue up 14%

TAGs: Amaya Gaming, bwin.party, GVC Holdings

Online gambling operator gvc-holdings-makes-900m-bid-on-bwin-partyGVC Holdings, teaming up with Amaya Gaming, has offered £900m ($1.4b) in cash and shares to purchase rival operator bwin.party.

According to the Financial Times, GVC’s offer values bwin.party’s shares at around 110p per share.

bwin shares rose 0.4% to 100.6p on Tuesday, giving the company a market cap of £823m.

A GVC spokesman refused to comment on the value of its bid, saying that the company is still engaged in discussions with bwin and will provide a further update for shareholders as and when appropriate.

Bwin was put up for sale in November and had received a number of approaches including 888 Holdings, which had confirmed a £1b bid in May.

GVC has also published its financial results for the first half of this calendar year ending June 30, 2015.

According to the information released, total net gaming revenue rose 14% to €120m from €105.1m over the same period last year.

Sports wagers rose 19% year-on-year to €823m compared to €694m posted for the six-month period ended June 30, 2014.

Aggregate sports margin was 8.9% compared to 9.9% for 2014. The drop was attributed to bettor-friendly results over the past six months.

GVC revealed that daily net gaming revenue in the period hit an average of €663,000, with customers wagering an average of €4.5m each day on sports events.

Customer deposits totaled €160.8m in the second quarter of the year, up 17.5% year-on-year.

As a result of its performance in the period, GVC is to increase its first interim dividend to €0.14 per share, up from €0.12 per share in the same period last year.

GVC also commented on the current situation in Greece, where the company has a presence via Centric Multimedia S.A. The company saw a decrease in player activity due to funds restrictions within and outside the country but has noted that it’s too early to provide any forecast on whether there will be any financial or other implications for it and its Greek partner during the second half of the year.

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