GVC Holdings Profits More Than Double Following bwin.party Takeover
GVC Holdings Plc is already seeing positive results following its takeover of bwin.party digital entertainment plc, announcing its adjusted profit before tax increased more than 135% from €21.8 million in 2015 to €51.3 million in 2016.
In its half-year results up to June 30, 2016, reported this week, GVC revealed sports wagers, net gaming revenue, revenue and EBITDA all increased compared to H1 of 2015.
|2016 (€m)||2015 (€m)||Change||Constant Currency|
|Net Gaming Revenue||441.8||408.4||8%||12%|
GVC Holdings CEO, Kenneth Alexander, said: “I am delighted to report another period of significant growth. It is GVC's combination of hardworking, talented people and unique proprietary technology platform that has allowed us to achieve so much in such a short period. The Group operates in a highly competitive, increasingly regulated and taxed environment, GVC has never been better placed to face these challenges. Indeed, we believe the organic growth potential of the Group is now greater than originally anticipated at the time of the bwin.party transaction acquisition.”
GVC only purchased bwin.party eight months ago so being able to turn around the struggling company’s fortunes is an amazing achievement. The half-year reports cited mobile betting being a key driver of growth with sports wagers increasing 55%, while casino and games grew by some 98%.
The company’s positive figures were buoyed by strong performance during the 2016 European Championships where €162 million was wagered with a gross win margin of 18.3%, impressive figures aided by England’s poor showing at the tournament and relative outsiders Portugal winning the title.
Cost saving synergies are expected to save GVC €125 million by 2017 and include migrating GVC’s sportsbook onto bwin.party’s technology platform, and restructuring bwin.party’s casino and poker operations including integrating GVC’s poker operation onto the bwin.party platform.