GVC Anticipates Changes, and Rolls With Them, According to LeadershipPublished February 4, 2019 by Lee R
In the digital age, global partnerships are the key to expansion for iGaming giants such as GVC group.
New growth reported at London-listed betting and gaming operator GVC Holdings chart a course for adaptation to the benefits of iGaming opportunities.
Gains are most tellingly visible in GVC's total net gaming revenue at 9%, with that growth primarily attributed to the online division.
GVC further reported full-year figures for online net gaming revenue (NGR) to have reached 19 per cent year-on-year to €1.86bn. as a result of strong growth across both Sports and Games brands—with a key 17% jump in the net gaming revenue contribution from B2B suggesting that the capability of forming and sustaining communities of players online is spurring growth.
Online net gaming revenue rose in total a strong 15% for the year 2018, with GVC's UK markets growing at the pace of 12% for 2018 Q4 in a turbulent gaming market.
GVC Sport Brands
GVC sport brands Bwin and Sportingbet enjoyed an increase of 14% in net gaming revenue.
Stronger performance was turned in by GVC's non-sports brands: partypoker’s net gaming revenue increased 43% and Gala contributed an 18% increase in net gaming revenue. Casino brands showed a solid 13% improvement, with 22% of the net gaming revenue is re-invested in promotional costs.
Land-based GVC had a sadder tale. Retail figures for net gaming revenue at GVC were down 3%, despite a 3% increase in FOBTs activity, and betting revenue in stores recorded a double figure drop of 10%.
With new limits on FOBTs coming in April, GVC has been aggressively pursuing other avenues of income, such as seeking out more US partnerships in that newly liberalised market.
GVC Leader Speaks Confidently
GVC Director Kenny Alexander remained unconcerned about fluctuations and the tasks at hand, citing the company's Ladbrokes Coral integration and US sports-betting joint-venture with MGM Resorts as sources for his personal confidence that “the (GVC) Group is very well placed for a successful 2019.
This confidence resulted in GVC Holdings shares rising as well for the day, with share prices trading up 2.08% to 687.0p per share.
As long as confidence translates to effective implementation of a concrete long-term strategy, GVC growth will bear more watching to see how market leaders adapt and lead.