REG - GVC Holdings PLC - Trading Statement <Origin Href="QuoteRef">GVC.L</Origin>

EntainAnnouncement

13/07/2016 07:05

RNS Number : 0064E
GVC Holdings PLC
13 July 2016
GVC Holdings PLC

("GVC" or the "Company" or the "Group")
Trading statement
GVC Holdings PLC (LSE:GVC),a leading e-gaming operator in both B2C and B2B markets, is pleased to announce a trading update for the six month period ending 30 June 2016. Trading in Q2 has been strong with both GVC and bwin.party brands achieving double digit growth on a constant currency basis.
Financial highlights1
 
Q2-2016 NGR per day grew by 11% compared to Q2-2015 on a pro forma2 basis, and grew by 16% on a constant currency basis
 
In Q2-2016, GVC brands grew by 24% and bwin.party brands grew by 12% pro forma2 year on year on a constant currency basis
 
In H1 2016, NGR per day grew by 7% on a pro forma2 basis, and 11% in constant currency 
 
In H1-2016, GVC brands grew by 15% and bwin.party brands grew by 9% pro forma2 year on year on a constant currency basis
 
H1-2016 total pro forma2 NGR was 439 million, up 8% (H1-2015: 407 million) 
 
H1 2016 NGR on a reported basis3 was 388 million up 223% (H1-2015: 120 million)
Operational highlights
 
Premium Listing: On 1 July, the Group notified the proposed transfer of all of its ordinary shares from the Standard segment of the Official List to the Premium segment ("Premium Listing"). It is anticipated that the Premium Listing will take effect from 08:00 AM on 1 August 2016
 
B2B expansion: On 23 May the Group announced the signing of a 10-year B2B licensing deal with Betfred, one of the UK's best known sports betting brands. This augments the existing B2B contracts which the Group has already developed
 
New Jersey Licence: On 9 June, the Group's existing licence in New Jersey was confirmed by the New Jersey Division of Gaming Enforcement
 
Integration update: Following the acquisition of bwin.party on 1 February 2016, the Board confirms the integration of the enlarged Group is progressing in line with expectations and remains on track to secure 125 million of synergies (as per November 2015 prospectus) by the end of 2017
Quarter 2
Following the positive performance reported in Q1, trading in Q2 has been strong with an acceleration in underlying NGR per day growth. 
On a pro forma2 basis, NGR per day in Q2 was 2,456k, an increase of 11% on the corresponding period in 2015, with growth in constant currency of 16%. The Group benefited from an above average sports margin in the period, 9.9% against 7.9% in Q2-2015, with particularly favourable results during the first half of the UEFA Euro 2016 tournament in France. Furthermore, it was pleasing to note that pro forma2 sports wagers per day increased by 9% in constant currency over the same period in 2015. Gaming NGR per day also grew by 11% on the same basis, helped by improved cross-sell from sports and new casino content.
Pro forma NGR per day in 000s
Q2-2016
Q2-2015
% change
% constant currency
H1-2016
H1-2015
% change
% constant currency
Sports wagers
12,552
11,943
5%
9%
12,805
12,364
4%
7%
Sports margin %
9.9%
7.9%


9.1%
8.1%


Sports NGR
972
779
25%
29%
914
833
10%
14%
Gaming NGR
1,306
1,215
8%
11%
1,301
1,217
7%
10%
Other revenue
178
211
-16%
-14%
199
200
-1%
-1%
Total NGR per day
2,456
2,205
11%
16%
2,413
2,251
7%
11%
Total NGR on a reported basis3 for H1 2016 was 388m, an increase of 223% on the same period in 2015, boosted by the acquisition of bwin.party. On a pro forma1 basis, total NGR increased by 8% and by 11% on a constant currency basis.
1 Revenue is disclosed unaudited and before VAT which applies in certain EU markets
2 Revenue as if bwin.party digital entertainment plc had been acquired 1 January 2016
3bwin.party consolidated from 1 February 2016
EU referendum
From an operational perspective, in the short to medium-term the GVC Board believes that UK referendum result to leave the EU will have little or no material impact on the Group. GVC is a diverse business, operating multiple brands and product verticals, with more than 90% of its customer base outside the UK. The Board is confident that this diversity gives the Group significant flexibility to face any potential long-term challenges that may arise from the UK's decision to leave the EU.
Kenneth Alexander, CEO said: 
"I am pleased to report that in the first half of 2016 GVC has continued to deliver positive trading momentum. Q2 was particularly strong, helped by increasing volumes and favourable sports results during Euro 2016. The restructuring of the enlarged Group is progressing well with synergy targets being achieved, accompanied by strong underlying growth. We are very encouraged by the positive performance to date, however, it is still early days and there is much work to be done, nevertheless, the board remains confident for the remainder of 2016."
The Group intends to announce its interim results for the period 30 June 2016 on 20 September 2016. 
This announcement contains inside information.
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For further information:
GVC Holdings PLC

Kenneth Alexander, Chief Executive
Tel: +44 (0) 1624 652 559
Richard Cooper, Group Finance Director
Nick Batram, Head of Investor Relations & Corporate Strategy
Tel: +44 (0) 20 7337 0110
Cenkos Securities plc 

Mark Connelly, Jeremy Osler, Camilla Hume 
Tel: +44 (0) 20 7397 8900 
Media enquiries:
Bell Pottinger

David Rydell, James Newman, Anna Legge, Laura Jaques 
Tel: +44 (0) 20 3772 2500 
About GVC Holdings PLC
GVC Holdings PLC isa leading e-gaming operator in both B2C and B2B markets. GVC has four main product verticals with a number of brands; Sports labels (bwin, Sportingbet, gamebookers), Gaming labels (partypoker, partycasino, Foxy Bingo, Gioco Digitale, CasinoClub), Studios (B2B) and non-core assets. GVC acquiredbwin.party digital entertainment plc on 1 February 2016.The Group is headquartered in the Isle of Man and has licences in more than 15 countries.
For more information see the Group's website: www.gvc-plc.com 

This information is provided by RNS
The company news service from the London Stock Exchange
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