GVC net gaming revenue increases 13% in Q3
GVC Holdings has posted a 13% net gaming revenue for Q3 2017. This increase brought the firm’s revenue to €243.5m for the quarter, which is the largest figure since the group acquired the Austrian betting company, bwin, in 2016.
The group’s report showed strong performance in all key areas, with a year-on-year improvement in both sport and gaming operations. Sports brands net gaming revenue was up by 14%, while games brands were 17% higher than the figures from a year ago. While we’re just one week into Q4 of 2017, the report also mentions a strong start to the quarter.
The figures are particularly impressive, as last year’s revenue was given a significant boost by the latter stages of the UEFA EURO 2016 football tournament.
GVC Holdings CEO, Kenneth Alexander, commented:
Underlying growth in Q3 represents the highest rate achieved since the acquisition of bwin in February 2016. The quick wins made in 2016 have been supplemented by further and continuous improvements across all areas of the business. GVC operates in an industry with significant opportunities and challenges and the combination of our talented employees, proven technology and strong brands, gives me confidence that we can continue to drive shareholder value.– Kenny Alexander, CEO of GVC Holdings
GVC and Ladbrokes move closer to a merger
GVC acquired bwin back in 2016 and is reported to be nearing a merger deal for Ladbrokes Coral. Reports suggest that details have been agreed and that both groups are awaiting the release of a government review of the gambling sector in the UK in the coming months, before going ahead with the deal.
Discussions over a merger began this summer, when GVC Holdings made numerous offers, including a £3.6bn approach in August. Negotiations collapsed soon after however, when Kenny Alexander, CEO of GVC Holdings, stated he will await the industry report’s findings before confirming any deal. A disagreement over share prices was also reported.
Should the merger be agreed, the new entity would comprise some of the biggest figures in UK gambling. Reports suggest that talks are fairly advanced and that a management structure and personnel are already being lined-up.