GVC hails significant progress as profits increase 17
GVC Holdings has hailed “significant progress” during the first half of 2018, with the company seeing profits increase by 17% following the acquisition of Ladbrokes Coral.
Interim results for the operator on a pro forma basis and before separately disclosed items, during the six months ended 30 June, saw net gaming revenue (NGR) increase by 8% year on year to £1.71bn ($2.2m).
As a result of the strong performance, the company’s underlying EBITDA increased 11% to £349.5m and underlying profit went up 17% to £277.9m.
New product launches and the Fifa World Cup were both said to have positively impacted the results, along with a 14% increase to online NGR and 29% increase in European retail NGR.
Kenneth Alexander, GVC CEO, said: “The acquisition of Ladbrokes Coral completed on 28 March and the integration of that business is progressing well.
“We have now identified capex synergies of at least £30m in addition to the £130m cost synergies and we are well placed to deliver those savings while driving top line growth.”
However, GVC is not content with sitting on its laurels, entering into discussions with Playtech to “realise operational synergies by consolidating its IT infrastructure” as well as providing additional products and content.
Another growth opportunity presented itself after the US Supreme Court’s decision to repeal the Professional and Amateur Sports Protection Act in May, with GVC announcing a joint venture to provide MGM Resorts with sports betting and online gaming services in the US.
Alexander added: “The combination of MGM’s leading brands together with GVC’s proprietary technology, and both businesses’ combined betting and gaming expertise, puts the Group in the best possible position to benefit from what could become the world’s largest regulated sports-betting market.”
The strong performance for GVC in its interim results has put the company well on track to deliver full-year results in line with the Board’s expectations.
GVC also made a separate announcement on the appointment of Pierre Bouchat to its Board of Directors as an independent Non-Executive Director.