GVC Holdings, one of the world’s largest sports betting and gaming groups, saw revenue grow 2% in 2019 to £3.66bn ($4.73bn), but posted a £140.7m loss, with more than 96% of group revenue coming from regulated or regulating markets.
Pro forma underlying EBITDA dropped 10% to £678.3m, but after adjusting for the estimated impact of the Triennial Review, which included the much-reported 98% reduction in fixed-odds betting terminal (FOBT) stake limits in the UK, and incremental taxes, it was up 14%. Online underlying EBITDA was up 20% after adjustment.
Underlying operating profit fell a significant 20% to £490.1m, and on a reported basis, though the group’s net gaming revenue of £3.66bn represented a 23% rise, and underlying EBITDA was up 19%, group loss after tax came in at £140.7m.
The loss was explained by £630.1m in costs related to the group’s acquisition of Ladbrokes Coral and Bwin, and a non-cash impairment of the group’s Australian online business.
Reflecting on the results CEO of GVC, Kenny Alexander, said:
“Our first full year since the Ladbrokes Coral acquisition has been a good one and the performance has continued to be underpinned by our unique and highly effective operating model.
“We are delighted with the progress being made on the Ladbrokes Coral integration. In the US, the launch of BetMGM on the GVC platform in New Jersey was an important milestone for our business and enables us to remain on track to deliver on our ambitions in this exciting market.”
Staying with GVC, last month we reported that following a vote at an Extraordinary General Meeting held in Gibraltar on 6th February, the group is set to relocate from the Isle of Man to the United Kingdom. While, in December 2019, the company consolidated all of its Italian operations to a new Rome office.
AYO.NEWS says:
Despite the dramatic impact the reduction of FOBT stake limits from £100 to £2 has clearly had on the UK retail betting space, causing GVC itself to announce plans to close around 900 betting shops, the group has been moving to an online dominated business model for some time now. However, the group’s online business in the UK market could also be adversely impacted if the UKGC implements a proposed £2 stake limit for online casino games.
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