GVC Holdings has revised its full year profit projections upwards.
Net gaming revenue (NGR) H1 revenues for the six months to 30 June came in at £1.81bn (€1.96bn$2.19bn), good for a 5% year-on-year rise when including Ladbrokes Coral’s pre-acquisition figures, and 61% taking into account results subsequent to the closing date of the acquisition on 28 March, 2018.
Online Growth Drivers
Drivers of the growth included the strong returns from GVC’s online business, which contributed a revenue rise of £1.02bn in the first half that was led by Gaming NGR's 17% jump to £574.6m and sports revenue's rise to £462.3m.
These strong gains plus GVC's acquisitions of Georgia’s Crystalbet in April 2018 and Australia’s Neds in November 2018 offset a 32% year-on-year decline in B2B revenue.
Key markets in GVC's online division included the 13% climb of the UK's NGR, which was supplemented by efforts to revitalise the major Ladbrokes brand through real-time CRM and improved gaming cross-sell techniques.
Revenue after Value Added Tax and the Australian Goods and Services Tax of £28.5 totaled £1.78bn, for a commensurate 5% year-on-year improvement.
GVC's Australia market turned in a 28% constant currency boost, with GVC's discipline marketing and bouncing strategy offsetting new point of consumption taxes.
Key GVC market Italy grew revenue 15% on a constant currency basis, establishing needed momentum as the market enforces new advertising restrictions.
In Germany, GVC has more challenges online, where a reported 23% NGR growth in H1 is facing any number of impending operating restrictions under the incoming State Treaty on Gambling.
Another jurisdiction where new regulations may bring GVC to the wrong side of regulation includes Brazil, where GVC up to this point has claimed to be Brazil's leading gaming brand in a jurisdiction reportedly developing a model for sportsbook-only regulations.
With GVC's European retail business continuing to grow strongly, GVC should continue to absorb turbulence successfully as the overall brand carries further growth through year's end.