GVC Holdings PLC (AIM:GVC), a leading online gaming company, today announces a trading update on the close of 2010 trading as well as current trading, and also gives notice of the Preliminary Results.
Trading Update – close of 2010
Total Net Gaming Revenues (“NGR”) for 2010 were €54.8 million, up 5.2% (2009: €52.1 million). Revenues from gaming for the year were €46.1 million, up 7.7% (2009: €42.9 million). Sports wagers were €69.3 million up 23% on the prior year (2009: €55.8 million), but the hold was lower at 13.3% (2009: 16.6%) leading to a 4% drop in sports NGR at €8.7 million, (2009: €9.2 million).
Total average daily revenues for 2010 were €150k (2009: €143k), with €126k (2009: €118k) from gaming and €24k (2009: €25k) from sports.
The revenues by brand for the years ended 31 December 2009 and 2010 were as follows:
|Sports gross margin||15.7%||17.7%|
|Sports gross margin||5.7%||6.6%|
|* six month period from 1 July 2009 to 31 December 2009|
|Total sports wagers||69,313||55,774|
|Sports gross margin||13.3%||17.2%|
|Total sport NGR||8,712||9,248|
|Total gaming NGR||46,160||42,900|
Sport wager volumes were positively affected by the FIFA world cup during 2010, and the hold percentage was encouraging until the last quarter when many favourites won their matches and the hold fell. The new sports trading management in Betboo is having a positive impact on its results.
Revenues per quarter as shown below:
Sports gross margin
Sports wagers were 31% higher in Q4-10 than in Q4-09, but the hold was lower at 7.3% (Q4-09: 21.6%) due to a run of favourites.
Gaming revenues in Q4-10 were higher than all the preceding four quarters. Gaming revenues have now returned to the levels of Q4-09, suggesting greater economic confidence of the customers of all of our brands.
The Group’s 2010 results are in line with market expectations. Cash at bank at 31 December 2010 was €4.9 million, and at 28 January 2011 (when Group figures were last available) was €5.7 million.
In the absence of unforeseen circumstances, the Board expects to propose a final dividend of €0.10 cents per share payable, subject to shareholder approval, in May 2011.
Trading update – January 2011
Total NGR for January 2011 is 6% ahead of the same month last year.
For January 2011, the average revenues per day were as follows:
|€’000s||January 2011||January 2010||FY 2010|
|Gross sports margin||8.4%||11.3%||13.8%|
Sports hold has been marginally affected by more favourites winning in the first month of 2011 compared to the same month in 2010.
On 5 January 2011, trading commenced in emerging markets through the Betboo brand as had been previously announced. This brand is now staffed by a team of 20, primarily in Malta. Early trading indications are positive and the Group is confident about the success of this venture.
As announced on 23 December 2010, Kenneth Alexander, Chief Executive Officer, Richard Cooper, Finance Director, and Lee Feldman, Non Executive Chairman, acquired a total of 56,700 ordinary shares in the Group. Between them, they now hold 168,700 ordinary shares.
Boss Media dispute
There is no additional information following the announcement issued on 17 December 2010. As previously announced:
- The Maltese Court will be hearing Boss Media’s submission on jurisdiction on 24 February 2011.
- In relation to the arbitration in Sweden, the date for oral submissions on jurisdiction to the tribunal has been preliminarily set for 20/21 June 2011.
GVC will keep the market informed of developments in relation to these cases. The costs associated with this litigation are being expensed as incurred and will be disclosed separately in the Group’s financial results.
Notice of Results
The Company will be releasing its preliminary financial results for the year ended 31 December 2010 as well as a Q1 trading update on Monday, 28 March 2011. An analyst briefing to be given by Kenneth Alexander (Chief Executive Officer) and Richard Cooper (Group Finance Director) will be held at 9.30 a.m. that morning at the offices of Abchurch Communications, 125 Old Broad Street, London EC2N 1AR.
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|
|Arbuthnot Securities Limited||Tel: +44 (0) 20 7012 2000|
|James Steel / Ed Gay|
|Henry Harrison-Topham / Nick Probert||Tel: +44 (0) 20 7398 7715|
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.
In December 2004, the shares of Gaming VC Holdings S.A., GVC’s predecessor company, were admitted to the AIM market of the London Stock Exchange. The GVC Group has not and has never transacted wagering activity by players in the US. Further information on the Group is available at www.gamingvc.com.