GVC Holdings PLC (AIM:GVC), a leading online gaming company, today announces an update on the close of 2011 trading as well as current trading.
Trading Update – close of 2011
The Group now has two distinct business lines; Business to Consumer “B2C”, including the brands CasinoClub, Betaland and Betboo; and Business to Business “B2B”, which currently includes the service revenue from East Pioneer Corporation B.V., the independent company to whom Sportingbet plc sold its Turkish language business on 21 November 2011.
The Group’s performance for 2011 is in line with expectations across both business lines.
Total B2C revenues increased by 15.3% to €63.3 million (2010: €54.9 million). The Directors consider this a most encouraging result during a period in which wider economic markets have been challenging and without the benefit of any significant international football competitions during the year.
Total average daily revenues for 2011 were:
|Sports||€36k (2010: €24k), an increase of 50%|
|Gaming||€137k (2010: €126k), an increase of 8.7%|
|Total||€173k (2010: €150k), an increase of 15.3%|
Total revenues in Q4-2011 at €17.3 million were 31.0% higher than Q4-2010 (€13.2 million).
Sports wagers increased by 74.2% to €120.7 million (2010: €69.3 million). The aggregate hold across the brands averaged 13.1% (2010: 13.3%). This in turn generated Sports Net Gaming Revenues (“NGR”) of €13.3 million (2010: €8.7 million).
Revenues in Q4-2011 at €4.2 million were 250% higher than Q4-2010 (€1.2 million) from a gross margin of 13.0% (Q4-2010: 7.3%).
Revenues from gaming increased by 8.5% to €50.0 million (2010: €46.2 million). Revenues in Q4-2011 at €13.1 million were 7.4% higher than Q4-2010 (€12.2 million).
The revenues per quarter were as shown in the table below:
|Average per day||143.5||168.9||167.0||170.7||196.7||175.9||150.1|
GVC receives a service fee from East Pioneer Corporation B.V. based on a minority share of Superbahis revenues, less various costs, and after allowing a series of other adjustments. This is a complex calculation and whilst daily trading data is available, GVC reports here just on its estimate of the net resulting B2B revenue receivable by GVC. As the acquisition completed on 21 November 2011, no comparatives are available.
For the 40 day period from 22 November to 31 December 2011 the resultant B2B revenue for GVC is expected to be €1 million, or around €25k per day.
Trading update – January 2012
For the 22 day period to 22 January 2011, the average revenues per day from the B2C business were as follows:
|€’000s||January 2012||January 2011|
|Gross sports margin||2.1%||9.5%|
In January 2012, there have been a large percentage of winning favourites in the major European soccer leagues suppressing the margins in the month of January to 2.1%. Whilst this is disappointing, the Group is not unduly concerned, as margins have historically evened-out over time, particularly as betting volumes remain strong with stakes to 22 January 2012 being 56% higher than the same period last year.
For the 22 days to 22 January 2012 the profit share from the B2B business is estimated to have averaged €28k per day, already an increase on the previous month. GVC is pleased with its operational performance of the take-on of this new contract with East Pioneer.
As announced on 25 November 2011, three Directors increased their holdings in the Company through either open market purchases or the retention of exercised options through which the Company gained exercise proceed funds of £359k. The Directors’ holdings are now:
These shareholdings represent 1.65% of the issued share capital of 31,469,095 ordinary shares in the Company.
Notice of Results
The Company will be releasing its preliminary financial results for the year ended 31 December 2011 as well as a Q1 trading update in the week commencing 23 April 2012.
The Directors remain cautiously optimistic for 2012.
For further information:
|GVC Holdings PLC|
|Kenneth Alexander, Chief Executive Officer||Tel: +44 (0) 20 7398 7715|
|Richard Cooper, Group Finance Director||www.gamingvc.com|
|Daniel Stewart & Company Plc||Tel: +44 (0) 20 7776 6550|
|Paul Shackleton / David Hart / Jamie Barklem||www.danielstewart.co.uk|
|Henry Harrison-Topham / Mark Dixon / Oliver Hibberd||Tel: +44 (0) 20 7398 7729|
About GVC Holdings PLC
GVC Holdings PLC is a leading online gaming company. The Group is headquartered in the Isle of Man and is licensed in Malta, and the Netherlands Antilles.
Further information on the Group is available at www.gamingvc.com.