Online growth for GVC Holdings has seen the firm report a Q2 three per cent revenue growth, despite double digit declines in its UK retail operation following the recently-introduced £2 limit on fixed-odds betting terminals.
Issuing its latest trading update, the firm saw a sharp 19 per cent second quarter drop take its performance for the first half of the year in the UK retail market to a ten per cent negative.
However strong online growth has been reported, as GVC continues to adapt to the new UK environment, with its gaming and sports segment boosting online NGR to increases of 16 per cent and 17 per cent in Q2 and H1, despite the latter competing against a tough period that included the Fifa World Cup.
Stressing that the organisation was able to secure material market share gains across all major territories, double-digit growth in all major regions included the UK (+19 per cent), Germany (+24 per cent), Australia (+38 per cent), Italy (+19 per cent) and Brazil (+38 per cent).
Kenneth Alexander, GVC CEO, explained: “Trading in Q2 remained very strong with the online division delivering continued material market share gains across all major territories.
“This out performance is driven by the sustainable competitive advantages of our proprietary technology platform, leading product, cutting edge marketing and leading brands, all delivered with an unrivalled understanding of the markets in which we operate.
“The transition to a post £2 stakes-cut environment in UK retail is progressing very well, and we believe the Ladbrokes Coral estate is best-placed to take market share.”
Furthermore, GVC also commented that its Roar Digital joint venture alongside MGM Resorts International should be up and running for full launch across key states in time for September’s National Football League return.
Alexander commented: “In the US, Roar Digital, our JV with MGM Resorts, is on-track for its full online launch ahead of the NFL season in September. In the first half of the year the group was granted licences in Mississippi and Nevada, and Roar Digital received a transactional waiver to conduct business in New Jersey.”
Adding “The group expects an announcement in August from Hesse, the state leading the regulatory process for online sports-betting in Germany, detailing the requirements that will govern the new sports-betting licences.
“The strong trading performance of the group means that any potential costs in 2019 associated with the new sports licences are expected to be fully mitigated. The board therefore remains confident of delivering EBITDA and operating profit in-line with expectations for the full year.”