GVC's revenue growth inspires further acquisitions
GVC has revealed double-digit revenue and earnings growth in the first six months of 2017 up to June 30.
In a trading update, GVC, the owner of Bwin, Sportingbet and Foxy Bingo, reported a pre-tax loss of €6.6m ($7.8m), compared with a €86.1m loss during the same period last year.
Revenues on a constant currency basis were up 11% year-on-year to €432m, with earnings before interest, tax, depreciation and amortisation (EBITDA) increasing 47% to €133.9m.
GVC’s sports betting division saw wagers plateau at €2.3bn, though the company said this had represented a good performance because 2016 figures were boosted by bets taken during the Euro 2016 football tournament.
Net gaming revenues jumped up 11% to €355.1m, as the company increased its win margins from sports bets.
The group said it expects clean EBITDA for the current year to be “comfortably ahead” of an analysts’ consensus of €255.5m.
“I am delighted with the strong progress across the group, which has continued to exceed our expectations since last year's acquisition of bwin.party,” said chief executive Kenneth Alexander.
“A combination of high quality talent, proprietary technology and proven brands are key components driving the business forward. Scale and geographic diversification are increasingly important as the regulatory environment evolves and competition increases.”
GVC has indicated a desire to seek more acquisitions, after last year taking over Bwin in £1.1bn deal that sent the firm into the FTSE 250.
Alexander said: “Strategically, the organic growth potential remains exciting and through further product development and increased marketing investment we are well placed to pursue these opportunities.
“However, we operate in an industry where regulation and increased taxation present headwinds and these are best addressed through scale and diversification. The combination of our people, proprietary technology and proven M & A track record, means GVC is well positioned to play a significant role in the industry's ongoing consolidation.
“Our focus is to build further scale in markets where we have identified an opportunity for expansion and explore new fast growing markets, both in terms of products and geography.”
Related article: Pragmatic Play pens content deal with GVC