BUSINESS

GVC upgrades outlook after a strong third quarter

TAGs: GVC Holdings

Even though you’d expect an operator like GVC Holdings to be having a down year, coming off a 2018 with a World Cup, things are shaking out to be a bit better than they expected. The U.K. operator has upgraded their full year earnings before interest, tax, depreciation and amortization (EBITDA), increasing the number from £650m – £670m to £670m – £680m.

GVC upgrades outlook after a strong third quarterAlthough GVC notes that the third quarter has been softer than expected, they’ve still registered a 12% increase in Net Gaming Revenue (NGR) for the period. It was news they had to announce. Group Chief Executive Kenneth Alexander stated:

“I am delighted that the Group’s financial performance has allowed us to upgrade our full-year EBITDA expectations again. Online momentum remains strong across all major territories, with NGR up 12% in the quarter despite the prior period containing part of the World Cup. This performance continues to be driven by our industry-leading technology, products, brands, marketing capability, and people.”

Where GVC didn’t do as well was in its U.K. retail segment, where the stakes cut resulted in a 36% drop in NGR in like-for-like machines, and the closure of 41 shops in Q3. They noted that they expect to close up to 900 shops in the next two years.

The constantly expanding U.S. market is also a promising sign for GVC’s future. Alexander noted:

“The launch in September of the BetMGM app in New Jersey, powered by the GVC technology platform, is a key milestone, and our U.S. sports-betting joint venture with MGM Resorts remains very well-placed to capitalise on the U.S. sports-betting opportunity. The integration of the Ladbrokes Coral businesses is progressing well with the migration of the Ladbrokes, Coral and Gala online brands due to commence in Q4 and complete by the end of H1 2020.”

GVC’s success has seen them become very prominent, especially in the U.K. market. The operator recently claimed the second rank in the U.K’s online gambling charts, partly thanks to their acquisition of Ladbrokes Coral.

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