GVC Holding Report a Rise of Online Revenues in Q4
GVC Holdings, owner of Ladbrokes, Coral, and bwin, reported a rise of 11% in online revenues for Q4, this was mainly driven by sports wagering that grew by a huge 10%.
The operator stated that net gaming revenue had increased by 15% overall in the final quarter of 2019. The 11% was a constant currency increase, but it meant that GVC expects that for 2019 they will reach the top end forecasts of £670-680m earnings before interest, taxes, depreciation, and amortization (EBITDA).
Although they were successful in the sports markets, they struggled in other areas. They were down in the international market, and the UK retail sector was down by 11%. This was largely attributed to the new FOBT regulations, and was not as bad as expected.
The Group said that overall their Net Gaming Revenue was 2% for the year.
The CEO, Kenny Alexander was very impressed by the growth and said:
The performance continues to be driven by our industry-leading technology, products, brands, marketing capability, people and local execution, all of which is underpinned by our determination to spearhead the industry’s approach to responsible gaming.– Kenny Alexander, GVC CEO.
Although there have been regulation restrictions in the UK, and there are more to be expected, they are still performing very well. The company does have business in many other countries, and Alexandar even pointed that in the US their brand was performing well. They have a partnership with Yahoo Sports and they expect this to give them a significant boost.
GVC expects to release the preliminary financial results for 2019 on March 5. They believe that the full-year results are an encouraging sign going into 2020. The net gaming revenue was actually around 9% across the countries of their main focus, thus they believe this will continue in the coming year.
Alexander said: “As the Group continues to deliver the opportunities provided by both the Ladbrokes Coral integration and our sports betting joint-venture in the US, the Board is confident that the Group is well placed for a successful 2020.” There us clearly optimism in the ranks, and until there is a sign of slowing down, there should be. It remains to be seen what 2020 will bring, but overall, it feels as thought there will be a successful year for the Group. Whether this translates across the board is another factor and one that the industry must keep an eye on. In the coming weeks we expect many reports to be released.