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GVC Holdings Revenue Set to Top €1 Billion

GVC Holdings

GVC Holdings PLC, owners of partypoker among other brands, posted an excellent trading update as it prepares for its £4 billion takeover of Ladbrokes Coral.

GVC started life in 2004 as Gaming VC Holdings and has expanded rapidly under its chief executive Kenny Alexander. The company has grown organically and also made a series of acquisitions including Betboo, Sportingbet and the £1.1 billion deal to takeover bwin.party digital entertainment limited.

The trading update released reveals the company’s largest Net Gaming Revenue (NGR) since that £1.1 billion takeover two years ago thanks to a stellar fourth quarter. NGR has increased 13 percent to a figure expected to be in the region of €1,009 million.

Sports brands have performed particularly well with daily NGR growing by 24 percent with the gross win margin coming in at 13.1 percent, way ahead of the expected long-term average of 10 percent.

In a statement on the GVC Holdings website, CEO Kenny Alexander wrote: “I'm delighted to report another strong year for the Group with underlying NGR growth of 18%, reflecting the strength of our brands, technology and the hard work of our talented people. We have once again demonstrated our ability to integrate significant acquisitions, realise material synergies and at the same time deliver top line growth. The recommended transaction with Ladbrokes Coral Group presents an exciting opportunity for both sets of shareholders, creating a global gaming group with a portfolio of strong brands across all major regulated online markets, together with proprietary technology and proven management.”

Alexander is now preparing to lead the takeover of Ladbrokes Coral in a deal worth between £3.2 billion and £4 billion; the actual figure depends on the outcome of a government review of gaming machines. Once completed, the deal will see GVC venture into a new era — it has only ever previously operated online — because it will become the owner of approximately 3,500 betting shops in the United Kingdom plus retail operations in Belgium, Ireland, Italy and Spain.

Shareholders in Ladbrokes Coral will hold 46.5 percent of the combined group upon the completion of the takeover due to the deal being a cash and shares combination. The deal is expected to save the combined company at least €100 million annually according to financial reports.

Alexander is understandably keen to close the deal, which will see GVC Holdings catapulted into the FTSE100.

“I can’t wait for the deal to complete and get on with the work of integrating it,” he said to The Times.

  • GVC Holdings releases an impressive trading update as it prepares to takeover Ladbrokes Coral.

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