BUSINESS

GVC sees Christmas bonus in Q4 trading update; Bwin.party losing games director

TAGs: bwin.party, GVC Holdings

gvc-holdings-christmas-bonusUK-listed online gambling operator GVC Holdings says trading in the first two months of Q4 has been “most encouraging,” setting the company up for a “very positive” finish to an already impressive year.

GVC says net gaming revenue in the months of October and November averaged €716k per day, up 11.7% from the same period last year. The results prompted GVC’s board to declare it was “highly confident” of hitting its targets for the 2015 financial year.

Trading has been strong across the board, with sports betting revenue up 10.8% to €328k per day and gaming revenue up 12.5% to €388k. Sports betting turnover rose 12.7% year-on-year and sports margin improved 0.6 points to 9.3%. Customer deposits rose 8.3% to €1.83m per day.

For the first 11 months of 2015, GVC’s average daily revenue is up 10.5% to €677k. A strong showing by the gaming vertical (+16.1%) helped compensate for relatively modest sports gains (+4.8%), which were laid low by the poor sporting results that have plagued all UK operators this year. On the plus side, sports betting turnover was up 14.2% year-on-year.

GVC will hold an extraordinary general meeting on Dec. 15, at which shareholders will get a chance to vote on the company’s proposed takeover of rival Bwin.party digital entertainment. GVC CEO Kenneth Alexander (pictured) said the board was “highly confident” of a favorable vote given GVC’s “excellent track record” of turning around “under-performing assets” such as Bwin.party.

Meanwhile, Bwin.party’s director of games Golan Shaked has announced he will leave the firm once the GVC takeover is complete in early February. eGaming Review reported that Shaked was asked to stay on but has opted to embark on a new career as chief commercial officer at an unspecified music streaming service.

Shaked says he will stay on in a consultancy role until GVC takes the reins. Tom Waters, a longtime Bwin.party veteran who was commercial director of games labels and previously served as financial controller for the Cashcade division, will serve as acting director of games until a permanent replacement can be identified.

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