GVC´s Acquisition of Bwin.party Ennobles Q1Published May 3, 2016 by Lee R
Numbers were up for all involved for Q1.
GVC Holdings has cited its acquisition of bwin.party as the main spur of the sharp, year-on-year jump in gaming revenue for the first quarter of 2016.
GVC´s net gaming revenue total of €167.7 million ($188.7 million) represented a significant increase of 180% from the €60 million of Q1 2015.
For the year figures dating to April 20th, average net gaming revenue per day also increased for all stakeholders. The group enjoyed an increase of 13%; GVC brands showed an increase of 18%, and bwin.party brands increased by 11% for brands. The all-around gains were fueled GVC´s acquisition of bwin.party on February 1.
Further testaments to the new deal visible in GVC´s update included the first year-on-year growth for any quarter for bwin.party brand PartyPoker in the last five years; and a current stated pace of €125 million in synergies by the end of 2017 from the new enlarged GVC group.
For the year, the gross cash position was strong, with a €327 million showing for the year ending on April 17. Meanwhile, net debt for the group amounted to €193 million on the same date. In other words, GVC group is over €100 million in the black.
GVC CEO Kenneth Alexander could not have been more pleased, saying that “GVC has never been in a stronger position going forward.”
All this activity has encouraged more trading. Alexander attributed this to his company`s combination of diverse products and strong branding, effectively adapting classical business principles in the new environment of online entertainment that iGaming represents.
Into the Future
The integration of classic business strategy into the online world means more cooperation than ever, and Alexander is quite aware there is more work to be done to continue adapting to sustain strong quarterly, monthly, and annual performance. GVC´s strategy moving forward of integrating acquisitions with diversification will be educational to watch unfold.