UK-listed online gambling operator GVC Holdings had a “particularly strong” second quarter thanks to higher turnover and unlucky punters.
GVC released an H1 trading update on Wednesday, showing net gaming revenue up 8% to €439m on a pro-forma basis, which includes contributions from Bwin.party brands as of January 1 rather than the official acquisition completion date of February 1. Official H1 numbers will be released on September 20.
As might be expected, GVC’s actual revenue was up 223% to €388m following the Bwin.party boost. GVC’s own brands (Sportingbet, Betboo) reported revenue up 15% while Bwin.party pro forma revenue improved by 9%. The Q2 figures were even healthier given the first half of the Euro 2016 football tournament, with GVC brands up 24% and Bwin.party up 12%.
On a pro forma basis, overall Q2 revenue per day was up 11% to €2.45m. Gaming revenue was up 8% to €1.3m thanks to new products and increased cross-sell from sports bettors. Sports revenue spiked 25% to €972k despite betting turnover rising only 5% as margins gained two full points to 9.9%.
GVC shares rose 4% on Wednesday to close at 638.5p and CEO Kenneth Alexander said the company was “very encouraged by the positive performance to date” while cautioning that there was still “much work to be done.” Alexander said the restructuring sparked by the union with Bwin.party was “progressing well” and the company was on track to achieve the promised €125m of synergies by the end of 2017.
The company also announced that it expects the UK’s Brexit vote to leave the European Union will have “little or no material impact” on GVC “in the short to medium-term.” GVC pointed out that it derives “more than 90%” of its revenue from outside the UK (thanks in part to re-entry into grey-markets Bwin.party had previously exited).