The international sports betting and gaming group GVC Holdings today released its financial results for the period ended 31 December, 2016. The report published by the company indicated a dramatic year-on-year jump in revenue for 2016. GVC deemed the acquisition of bwin.party, which took place in February last year, as one of the main drivers of the group’s financial growth for the period.
The group reported a jump in actual net gaming revenue, which stood at €894.6 million in 2016, with a 12% growth in constant currency. This is a 9% increase from the €247.7. million net gaming revenue the company reported in the previous year.
The earnings of GVC Holdings’ before interest, tax, depreciation and amortisation (EBITDA) for 2016 increased by 26% to reach €193.5, which was a significant jump from the €54.1 million the company achieved the previous year. This increase represented a substantial improvement in EBITDA margin which grew from 20% to 23%.
The group also reported a gross debt of €131.5 million. These costs were related to bwin.party’s acquisition and are expected to decrease significantly this year. The company’s earnings from sports wagers for the period amounted to €4.33 billion as opposed to the €1.68 billion it earned from this market segment the previous year.
The year of 2016 was certainly of great significance for GVC Holdings. The group completed its acquisition of bwin.party on February 1, 2016 and reported a dramatic increase in its market value only several months later.
Kenneth Alexander, Chief Executive of GVC Holdings commented that last year’s acquisition of the online gambling operator bwin.party was one of the most ambitious transactions the company had conducted to this date. According to Alexander, part of GVC’s operational and financial success can be attributed to the group’s ability to create substantial shareholder value by carefully selecting its acquisitions.
Alexander went on to say that GVC’s strategy of pursuing international diversification is more appropriate today than it had been at any other point in the company’s history. The Chief Executive also expressed his confidence that GVC would enjoy even further growth in 2017.
Non-executive Chairman Lee Feldman also took the opportunity today to announce William Whitehorn was appointed as Senior Independent Non-executive Director of GVC Holdings. Feldman spared no praises for Whitehorn referring to him as a “highly experienced businessman” who would contribute to the company’s growth with his experience and corporate knowledge.
