GVC Holdings PLC (AIM:GVC), the multinational sports betting and gaming group, today announces a trading update for the six months to 30 June 2014, including an update for the 13 days to 13 July 2014 (i.e. after the World Cup final), along with announcing an increased quarterly dividend of 12.5 €cents per share.
Continued growth in dividends
This first interim dividend for 2014 is 1.0 €cent (8.7%) higher than the previous quarterly dividend of 11.5 €cents and 2.0 €cents (19%) higher than declared a year ago (10.5 €cents). The dividend will be payable on Monday 18 August 2014 to shareholders on the register on Friday 25 July 2014, and the shares will go ex-dividend on Wednesday 23 July 2014.
The table below records the dividend declarations made since 1 January 2013.
€cents per share
| 2013 | January | May | July | September | Total |
| Ordinary dividend | 7.0 | 0.0 | 10.5 | 10.5 | 28.0 |
| 2014 | January | May | July | September | Total to date |
| Ordinary dividend | 11.5 | 11.5 | 12.5 | TBA | 35.5 |
| Special dividend | – | 4.5 | – | TBA | 4.5 |
| Total dividend | 11.5 | 16.0 | 12.5 | TBA | 40.0 |
Trading overview for H1-2014
The GVC Board is pleased to announce record trading for the second successive quarter with total NGR* of €54.8 million (€602k per day) up 11% on Q2-2013 and up 8.9% on Q1-2014. Total revenues in the six months ended 30 June 2014 were €105.1 million, up 45.4% on H1-2013 (€72.9 million) and up 10% on H2-2013 (€95.7 million). The underlying comparisons to 2013 are even stronger as the impact of currency headwinds was around €50k per day.
The results in Q2-2014 have been boosted by the 54 games of the World Cup held in June in Brazil which not only made a current year contribution to profitability but is expected to leave a legacy of greater market penetration, significantly more customers and a stronger and more diversified revenue base.
* NGR (Net Gaming Revenue) is revenue after betting pay-outs, and customer bonuses, and in-line with GVC’s published accounting policies. Revenues in 2013 included an element attributable to East Pioneer Corporation BV earned prior to 20 March 2013. NGR in 2013 has been restated upward by €0.6 million to ensure consistency of recording certain additional income
The key highlights for Q2-2014 have been:
- Sports wagers: €354 million (€3.9 million per day), 7.0% higher than Q2-2013 and 4.6% higher than Q1-2014
- Sports margin: 9.84% compared to 9.15% in Q2-2013 and 10.01% in Q1-2014
- Total NGR: €602k per day, up 11.0% over Q2-2013 (€542k per day), and up 8.9% over Q1-2014 (€559k per day)
- Sports NGR: €297k per day, up 6.5% on Q1-2014 and up 8.0% on Q2-2013
- Gaming NGR: €305k per day, up 8.5% on Q1-2014 and up 14.2% on Q2-2013
- Customer deposits: topped €142 million during Q2-2014, up 10% on the previous quarter, and up 26% over the prior year (Q2-2013: €113 million)
- First Time Depositing customers (“FTDs”): rose by 21% to 81 thousand over the previous quarter and by 70% over the prior year (Q2-2013: 48 thousand).
The 2014 World Cup in Brazil has been a resounding success in terms of recruiting new customers and generating increased revenues for the Group on the back of increased but effective marketing investment. In terms of customer recruitment over 81 thousand customers were added in the quarter, and 35 thousand in the month of the World Cup alone, providing a springboard for further growth in the Group.
Sports wagers in the first six months of 2014 rose 38% to €693 million. A summary of the revenues over the last three six-month periods is shown below:
| H1-2014 | H2-2013 | H1-2013 | |
| Sports wagers (in €millions) | 693 | 669 | 501 |
| Sports margin | 9.92% | 9.04% | 10.30% |
| Total NGR (in €millions) | 105.1 | 95.7 | 72.9 |
At a constant currency rate, the total NGR would have been €114.5 million in H1-2014.
The increased first interim dividend of 12.5 €cents per share (2013: 10.5 €cents) announced today represents management’s confidence in the current trading and future prospects of the Group. GVC anticipates declaring a second interim dividend for the six months ended 30 June 2014 along with the release of its Interim Results in September.
Trading KPIs
Per quarter:
| Average per day in 000’s | Q2-2014 | Q1-2014 | Q4-2013 | Q3-2013 | Q2-2013 |
| Sports wagers | 3,893 | 3,765 | 3,926 | 3,335 | 3,637 |
| Sports margin | 9.84% | 10.01% | 8.39% | 9.82% | 9.15% |
| Sports NGR | 297 | 279 | 244 | 267 | 275 |
| Gaming NGR | 305 | 281 | 279 | 251 | 267 |
| Total NGR | 602 | 559 | 523 | 518 | 542 |
Per six-month period:
| Average per day in €000’s | H1-2014 | H1-2013 | % increase |
| Sports wagers | 3,829 | 2,771 | 38% |
| Sports margin | 9.92% | 10.30% | |
| Sports NGR | 288 | 242 | 19% |
| Gaming NGR | 293 | 226 | 30% |
| Total NGR | 581 | 469 | 24% |
Current Trading
Trading up to midnight on Sunday 13 July 2014, when the World Cup concluded, has continued strongly with average NGR per day of €736k up 61% on the same period last year (€456k per day). The trading over this thirteen day period was assisted by the favourable results in the latter stages of the World Cup which resulted in an aggregate sports margin percentage of 11.6%. During this period GVC also recruited a further 11 thousand FTDs compared to 5 thousand in the same 13 day period last year.
Kenneth Alexander, Chief Executive of GVC Holdings plc, said: “I am delighted today to announce another record quarter and half-year for revenues and an increase in the quarterly dividend. The World Cup has provided the foundation for additional recruitment of funded customers and the Group is now in an excellent position to continue growing strongly. This success and growth reflects the tremendous efforts from the talented and motivated staff we have at GVC, all of which have bonus plans aligned to the dividends declared to shareholders. We look forward to providing the market with a more detailed update when we report the Group’s interim results.”
Notice of Interim Results
The Group expects to release its Interim Results in the week of 22 September 2014, along with a further trading update and an announcement about its Q3 2014 interim dividend.
For further information:
| GVC Holdings PLC | |
| Kenneth Alexander, Chief Executive | Tel: +44 (0) 20 7398 7702 |
| Richard Cooper, Group Finance Director | www.gvc-plc.com |
| Daniel Stewart & Company Plc | Tel: +44 (0) 20 7776 6550 |
| David Hart / Paul Shackleton/ Martin Lampshire | www.danielstewart.co.uk |
Media enquiries:
| Abchurch | |
| Henry Harrison-Topham | Tel: +44 (0) 20 7398 7702 |
| henry.ht@abchurch-group.com | www.abchurch-group.com |
About GVC Holdings PLC
GVC Holdings PLC is a multinational sports betting and gaming group. Its core brands are CasinoClub, Betboo and Sportingbet. The Group has over 600 employees and is headquartered in the Isle of Man and is licensed in Malta, Germany, Denmark, UK, South Africa, Italy, Alderney and the Dutch Caribbean.
Further information on the Group is available at www.gvc-plc.com