GVC raises full year guidance amid strong Q3 online performance

GVC Holdings has lauded further online growth during the third quarter of the year, as the firm increases full year guidance once again in its latest trading update.

The firm, which has launched its new foundation recently to support the company’s ongoing CSR initiatives, objectives and donations worldwide, has upgraded its EBITDA guidance range for 2019, for a third time this year, to £670m – £680m from £650m – £670m.

Online net gaming revenue is 12 per cent ahead across all territories, which raises to 14 per cent with adjusted for the impact of the World Cup, with gaming NGR eight per cent ahead despite the prior year benefiting from high levels of cross-sell from the football showpiece.

It was also reported that the firm’s UK retail segment following the cut in maximum B2 stakes to £2 on April 1, 2019, remain ahead of expectations, while on a European basis GVC sees NGR fall to four per cent behind year-on-year.

Kenneth Alexander, CEO of GVC, explained: “I am delighted that the group’s financial performance has allowed us to upgrade our full year EBITDA expectations again. Online momentum remains strong across all major territories, with NGR up 12 per cent in the quarter despite the prior period containing part of the World Cup. This performance continues to be driven by our industry-leading technology, products, brands, marketing capability and people.

“The launch in September of the BetMGM app in New Jersey, powered by the GVC technology platform, is a key milestone, and our US sports-betting joint venture with MGM Resorts remains very well-placed to capitalise on the US sports-betting opportunity. 

“The integration of the Ladbrokes Coral businesses is progressing well with the migration of the Ladbrokes, Coral and Gala online brands due to commence in Q4 and complete by the end of H1 2020.

“Finally, we were delighted to recently launch the GVC Global Foundation, which will coordinate and support GVC’s CSR initiatives around the world. This should be taken as a clear sign of our determination to spearhead the gambling industry’s approach to CSR initiatives, particularly with regard to responsible gambling”.

Furthermore, the organisation also provided an update to its search for a successor to current chairman Lee Feldman, which is states is well progressed with an announcement expected to be made before the end of the year.

The group has also confirmed regulatory clearance has been granted regarding the sale of its 50 per cent interest in Sportium Apuestas Deportivas, with completion of the €73.7m Cirsa transaction expected to be complete within the next two weeks.