GVC unveils trading outcomes for the year 2018.
GVC Holdings, a prominent British gaming organization, released their 2018 trade results, showcasing a 9% increase in overall turnover. This recent update led to soaring stock prices on the London Stock Exchange.
The CEO, Kenneth Alexander, praised the results, mentioning that "expectations were exceeded". The growth is primarily associated with the rise in online revenues, as GVC's total net gaming revenue through online platforms soared by 19% and 21% when considering constant currency. Consequently, GVC's shareholders should celebrate, as shares skyrocketed by 2.08% to 687.0 pence per share immediately post-announcement.
By the sports betting category, turnover surged by 20%, whereas the online gaming segment brought in the most revenue, as net revenue gained a 14% increase. Additionally, GVC recorded a 13% rise in stakes for betting. These astonishing figures align directly with the 2018 FIFA World Cup's occurrence, which highly contributed to the stake increase.
In the iGaming sector, GVC boasted an impressive 16% rise. Among many other business aspects, the Group's B2B business performed notably since 2017, yielding 17% growth.
The significant growth in the iGaming industry is rooted in the gaming giant’s diverse portfolio consisting of Bwin, PartyGaming, Sportingbet, and Ladbrokes Coral. As a result, Alexander referred to 2018's achievement as "excellent performance". The forward-looking Managing Director predicts the trend will continue in 2019, with expansion plans in mind for the US market. Alexander expressed his confidence in GVC's prosperity, "GVC is entering 2019 with momentum. We'll leverage this moment to advance both Ladbrokes' global market integration and our joint venture with MGM Resorts in the US."
The US-MGM joint venture emerged from a 50/50 partnership last year, carrying an equivalent financial value of €176 million. GVC intends to leverage the joint venture for expanding in the rapidly expanding US sports betting industry legalized in May 2018. Concurrently, MGM anticipates using GVC's strong European brand portfolio to develop a stronger foothold in the international market.
The retail business performed admirably in Europe in 2018, with a 16% increase in sales across the continent. GVC operated in all key regions, ensuring widespread representation.
Despite a 3% drop in the UK's retail segment revenue, classic gaming machines still saw a 3% rise. Alexander attributed this spat to a year-over-year "exceptionally high prior-year result", thus resulting in a "decline in like-for-like sales", but added that improvements were made - Ireland's retail business rose by 8%, Belgium reported an increase of 15%, and Italy even saw a growth of 18%.
GVC experienced the majority of its revenue growth in Q4, which contributed approximately 6% of the entire sales. Alexander attributed this spike primarily to GVC's evolving online business. Net gaming revenue swelled by a whopping 15%, with Gala brands and partypoker both recording whopping growth rates as well, at 18% and 43%, respectively. Traditional casino brands observed a more moderate 13% rise.
Lastly, GVC became a member of the prestigious FTSE4Good Index, a UK index evaluating companies on social and environmental performance. GVC's inclusion in the index proves their commitment to responsible corporate action, a precursor to sustained growth and enriching shareholder value.
"We're proud to join the FTSE4Good Index and be seen as a leader in corporate social responsibility," said Alexander. "Responsible action is crucial to our long-term success."
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Source: www.onlinecasinosdeutschland.com
