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GVC powers on as digital presence drives growth

By Oliver Haill

Date: Thursday 18 Oct 2018

GVC powers on as digital presence drives growth

(Sharecast News) - GVC Holdings revenues growth accelerated in the third quarter of its financial year as the owner of bookmaker Ladbrokes and various online gaming brands gained market share in all major territories.
Total net gaming revenue in the three months to 30 September increased 14% year-on-year, with digital revenues, which represent more than half of the group's total, up 28% thanks to a good finish to the World Cup.

UK bookmaking revenues fell 2%, however, an improvement from the 3% decline in the first half of the year, with sports wagering down 4% and sports margin down 0.2 percentage points.

European retail NGR jumped 24%, with sports wagering up 18% and sports margin gaining 0.9ppts.

The performance was "very pleasing", said chief executive Kenneth Alexander, especially the continuing momentum across the online and European retail divisions.

"As highlighted in our H1 results, we will look to consolidate our position in markets where we are taking market share through the reinvestment of excess returns, and the board is confident in its full year expectations."

Alexander said he believed the sports-betting joint venture with MGM is "best placed to be the market leader in the US" and during the quarter, GVC "soft-launched" its sports-betting app in New Jersey.

"The industry continues to evolve and whilst there are challenges there are also many exciting opportunities. Through our proprietary technology, portfolio of brands, leading product and talent, GVC is well placed to continue to deliver shareholder value."

Alexander will be joined on the board by Rob Wood, chief financial officer of Ladbrokes Coral, who has been appointed group deputy CFO with immediate effect with the intention that he will succeed Paul Bowtell as the group's CFO when he steps down next March.

Shares in GVC, which last week had fallen by around a quarter from July's all-time high of above 1,180p, were up 1% to 940p.

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