Isle of Man-headquartered online gambling operator and B2B service supplier GVC Holdings today provided a trading update for the fourth quarter of 2016. The company is set to post its full-year results on March 23.
GVC generated daily net revenue of €2.5 million during the reported period. Overall net revenue totaled €231.3 million during the quarter ended December 31, 2016, reflecting a 7% increase from the previous year. Net revenue rose 9% in constant currency.
Sports net revenue per day grew 5% year-on-year to €904,000 on the back of a 3% rise in sports wagers. The average amount of €12.8 million was wagered per day during the reviewed three-month period. Sports margin stood at 9.6% during the period reviewed in the trading update. Daily net revenue from gaming operations totaled €1.6 million, up 9% from the fourth quarter of 2015.
GVC said that it considered the generated results pleasing, particularly given the operator-unfriendly sports results from the final weeks of the year and the strong comparative quarter in 2015.
As mentioned above, the company is set to publish its full-year results in late March. It said in its latest trading update that it expects full-year revenue of around €894 million, representing an increase of 9% from the prior year. Clean EBITDA is anticipated to be at the top end of original forecasts.
Commenting on the trading update posted, GVC Holdings CEO Kenneth Alexander said that the positive trading momentum has extended into the first month of 2017 and daily net revenue increased 23% year-on-year in January.
The executive further noted that last year was particularly important for the gambling group as it completed its largest by far acquisition of fellow online gaming operator bwin.party. Mr. Alexander said that they are on target to generate €125 million in synergies by the end of 2017 as a result from the acquisition deal.
Last year, GVC scored multiple agreements with online gaming content suppliers to boost its portfolio. The company also expanded into new markets. Mr. Alexander said that the international diversification and expansion will be an important part of their activities in 2017. As the executive pointed out, the group will be looking to organic opportunities and “further industry consolidation” during the current year and in the years to come.
