POSITIVE YEAR FOR INTERNET GAMBLING GROUP
25th April, 2012 at 03:11:16
GVC Holdings releases results for the year ended 31 December 2011
The primarily German-focused online gambling group GVC Holdings plc has posted its preliminary results for the year ended 31 December 2011, along with a trading update to 22 April 2012.
Highlights of the report include:
* Total revenues increased by 17% to Euro 64.3 million (2010: Euro 54.9 million), the fifth successive year of increased revenues
* Clean EBITDA of Euro 10 million (2010: Euro 12.2 million) following planned investments in marketing and TV campaigns in the Group's B2C brands
* 10% rise in final dividend and ahead of market expectations at 11 euro cents per share (2010: 10 euro cents per share) providing a total dividend of 21 euro cents per share for 2011
* B2C markets performing well, revenue up 6% on 2010
* Successful diversification into B2B markets with support agreement with East Pioneer Corporation B.V. effective late November 2011
The company's trading update excludes ditched Betaland (see previous report) and covers the first 113 days of trading this year:
* 57% increase in average daily revenues to Euro 160 000 (2011: Euro 102 000)
* 165% increase in B2C sports wagers
* Euro 56,100 per day of B2B revenues
* Revenues increased despite some unusually high casino winners across both B2C and B2B along with a softness in the B2C sports margin percentage at 7.6% (2011: 11 percent) through punter-friendly results
Chief executive Kenneth Alexander commented:
2011 was a significant year for the group as we moved into providing B2B services for the first time with our support agreement with EPC. This marks a change of direction for the group away from pursuing growth in pure B2C markets, and this has continued with the disposal of Betaland earlier this month.
"Revenues have seen a fifth successive year of increase, against a backdrop of tight consumer spending across the group's core markets and the decline of poker revenues across the industry.
Trading in 2012 has started encouragingly, despite some unusually high casino winners across both B2C and B2B, along with a softness in the B2C sports margin percentage through punter-friendly results. The Latin American business continues to grow with sports wagers 165% higher than the same period last year.
The Board recognises the importance of a more regular income stream to our shareholders and to reflect this, it announces today that it is going to move towards paying dividends quarterly beginning in February 2013."
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