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06/09/2014 16:32

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RNS Number : 2920M
GVC Holdings PLC
15 July 2014 
 
 Press Release  15 July 2014  
 
 
GVC Holdings PLC 
 
("GVC" or the "Group") 
 
H1 and post World Cup Trading Update 
 
Increased Quarterly Dividend Declaration 
 
Notice of Interim Results 
 
GVC Holdings PLC (AIM:GVC), the multinational sports betting and gaming group,
today announces a trading update for the six months to 30 June 2014, including
an update for the 13 days to 13 July 2014 (i.e. after the World Cup final),
along with announcing an increased quarterly dividend of 12.5 Ecents per
share. 
 
Continued growth in dividends 
 
This first interim dividend for 2014 is 1.0 Ecent (8.7%) higher than the
previous quarterly dividend of 11.5 Ecents and 2.0 Ecents (19%) higher than
declared a year ago (10.5 Ecents).  The dividend will be payable on Monday 18
August 2014 to shareholders on the register on Friday 25 July 2014, and the
shares will go ex-dividend on Wednesday 23 July 2014. 
 
The table below records the dividend declarations made since 1 January 2013. 
 
Ecents per share 
 
 2013               January  May   July  September  Total         
 Ordinary dividend  7.0      0.0   10.5  10.5       28.0          
                                                                  
 2014               January  May   July  September  Totalto date  
 Ordinary dividend  11.5     11.5  12.5  TBA        35.5          
 Special dividend   -        4.5   -     TBA        4.5           
 Total dividend     11.5     16.0  12.5  TBA        40.0          
 
 
Trading overview for H1-2014 
 
The GVC Board is pleased to announce record trading for the second successive
quarter with total NGR* of E54.8 million (E602k per day) up 11% on Q2-2013 and
up 8.9% on Q1-2014.  Total revenues in the six months ended 30 June 2014 were
E105.1 million, up 45.4% on H1-2013 (E72.9 million) and up 10% on H2-2013
(E95.7 million).  The underlying comparisons to 2013 are even stronger as the
impact of currency headwinds was around E50k per day. 
 
The results in Q2-2014 have been boosted by the 54 games of the World Cup held
in June in Brazil which not only made a current year contribution to
profitability but is expected to leave a legacy of greater market penetration,
significantly more customers and a stronger and more diversified revenue
base. 
 
* NGR (Net Gaming Revenue) is revenue after betting pay-outs, and customer
bonuses, and in-line with GVC's published accounting policies.  Revenues in
2013 included an element attributable to East Pioneer Corporation BV earned
prior to 20 March 2013.  NGR in 2013 has been restated upward by E0.6 million
to ensure consistency of recording certain additional income 
 
The key highlights for Q2-2014 have been: 
 
 ·  Sports wagers: E354 million (E3.9 million per day), 7.0% higher than Q2-2013 and 4.6% higher than Q1-2014                                              
 ·  Sports margin: 9.84% compared to 9.15% in Q2-2013 and 10.01% in Q1-2014                                                                                
 ·  Total NGR: E602k per day, up 11.0% over Q2-2013 (E542k per day), and up 8.9% over Q1-2014 (E559k per day)                                              
 ·  Sports NGR: E297k per day, up 6.5% on Q1-2014 and up 8.0% on Q2-2013                                                                                   
 ·  Gaming NGR: E305k per day, up 8.5% on Q1-2014 and up 14.2% on Q2-2013                                                                                  
 ·  Customer deposits: topped E142 million during Q2-2014, up 10% on the previous quarter, and up 26% over the prior year (Q2-2013: E113 million)          
 ·  First Time Depositing customers ("FTDs"): rose by 21% to 81 thousand over the previous quarter and by 70% over the prior year (Q2-2013: 48 thousand).  
 
 
The 2014 World Cup in Brazil has been a resounding success in terms of
recruiting new customers and generating increased revenues for the Group on
the back of increased but effective marketing investment.  In terms of
customer recruitment over 81 thousand customers were added in the quarter, and
35 thousand in the month of the World Cup alone, providing a springboard for
further growth in the Group. 
 
Sports wagers in the first six months of 2014 rose 38% to E693 million.  A
summary of the revenues over the last three six-month periods is shown below: 
 
                               H1-2014  H2-2013  H1-2013  
 Sports wagers (in Emillions)  693      669      501      
 Sports margin                 9.92%    9.04%    10.30%   
 Total NGR (in Emillions)      105.1    95.7     72.9     
 
 
At a constant currency rate, the total NGR would have been E114.5 million in
H1-2014. 
 
The increased first interim dividend of 12.5 Ecents per share (2013: 10.5
Ecents) announced today represents management's confidence in the current
trading and future prospects of the Group.  GVC anticipates declaring a second
interim dividend for the six months ended 30 June 2014 along with the release
of its Interim Results in September. 
 
Trading KPIs 
 
Per quarter: 
 
 Average per day in 000's  Q2-2014  Q1-2014  Q4-2013  Q3-2013  Q2-2013  
 Sports wagers             3,893    3,765    3,926    3,335    3,637    
 Sports margin             9.84%    10.01%   8.39%    9.82%    9.15%    
 Sports NGR                297      279      244      267      275      
 Gaming NGR                305      281      279      251      267      
 Total NGR                 602      559      523      518      542      
 
 
Per six-month period: 
 
 Average per day in E000's  H1-2014  H1-2013  % increase  
 Sports wagers              3,829    2,771    38%         
 Sports margin              9.92%    10.30%               
 Sports NGR                 288      242      19%         
 Gaming NGR                 293      226      30%         
 Total NGR                  581      469      24%         
 
 
Current Trading 
 
Trading up to midnight on Sunday 13 July 2014, when the World Cup concluded,
has continued strongly with average NGR per day of E736k up 61% on the same
period last year (E456k per day).  The trading over this thirteen day period
was assisted by the favourable results in the latter stages of the World Cup
which resulted in an aggregate sports margin percentage of 11.6%.  During this
period GVC also recruited a further 11 thousand FTDs compared to 5 thousand in
the same 13 day period last year. 
 
Kenneth Alexander, Chief Executive of GVC Holdings plc, said: "I am delighted
today to announce another record quarter and half-year for revenues and an
increase in the quarterly dividend.  The World Cup has provided the foundation
for additional recruitment of funded customers and the Group is now in an
excellent position to continue growing strongly.  This success and growth
reflects the tremendous efforts from the talented and motivated staff we have
at GVC, all of which have bonus plans aligned to the dividends declared to
shareholders.  We look forward to providing the market with a more detailed
update when we report the Group's interim results." 
 
Notice of Interim Results 
 
The Group expects to release its Interim Results in the week of 22 September
2014, along with a further trading update and an announcement about its Q3
2014 interim dividend. 
 
- Ends - 
 
For further information: 
 
 GVC Holdings PLC                                                   
 Kenneth Alexander, Chief Executive      Tel: +44 (0) 20 7398 7702  
 Richard Cooper, Group Finance Director  www.gvc-plc.com            
 
 
 Daniel Stewart & Company Plc                     Tel: +44 (0) 20 7776 6550  
 David Hart / Paul Shackleton / Martin Lampshire  www.danielstewart.co.uk    
 
 
Media enquiries: 
 
 Abchurch                                                
 Henry Harrison-Topham        Tel: +44 (0) 20 7398 7702  
 henry.ht@abchurch-group.com  www.abchurch-group.com     
 
 
About GVC Holdings PLC 
 
GVC Holdings PLC is a multinational sports betting and gaming group.  Its core
brands are CasinoClub, Betboo and Sportingbet.  The Group has over 600
employees and is headquartered in the Isle of Man and is licensed in Malta,
Germany, Denmark, UK, South Africa, Italy, Alderney and the Dutch Caribbean. 
 
Further information on the Group is available at www.gvc-plc.com 
 
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