Isle of Man-based gambling operator GVC Holdings PLC announced its preliminary financial results for the year ended December 31, 2014.
The company pointed out that 2014 has been quite profitable and both organic and operational growth was posted for all of the markets it provides its numerous gambling services on.
During the twelve-month period ended December 31, 2014, GVC generated the total amount of €225 million in net gaming revenue, up 31% as compared to what was posted a year ago. In 2013, company’s net gaming revenue amounted to €170 million.
Gaming net revenue rose 26% to reach €114.6 million. An increase was also posted in revenue from sportsbook activities. It amounted to €110.2 million, up 21% as compared to the fiscal year ended December 31, 2013.
The substantial sum of €1.5 billion was generated out of sports wagers, a 25% increase compared to €1.2 billion in 2013. The rise was mainly attributed to “strong World Cup performance”.
EBITDA totaled €49.2 million in 2014. By comparison, the sum of €38.3 million was reported a year ago.
Operating profits marked an impressive 204% rise to €42.9 million. Back in 2013, they amounted to €14.1 million.
The company pointed out that the strong performance in 2014 could be attributed to the significant amounts of money it had invested for marketing. For instance, €7 million were spent on marketing during the four-week FIFA Wolrd Cup.
Furthermore, the sum of €3.3 million was invested in the improvement of the operator’s numerous products. GVC said it had paid special attention to the mobile segment of the gambling market.
The provider also pointed to the fact that it had managed to further broaden its catalog of offered games by means of third-party integration. In addition to this, company officials shared that widening the payments capability and product offering was among their primary goals, as this assisted the broadening of its in-play market. As it was reported, in-play accounted for 71% of GVC’s sports gross gaming revenue in the three-month period ended 31 December, 2014.
As for 2015, the company is planning to increase its product investments by 50%, so as to be able to continue the significant growth it posted in 2014. Thus, GVC will not only be able to maintain its position on the markets it offers its services on, but will also secure revenue growth by the end of this fiscal year.
Kenneth Alexander, Chief Executive of the gaming operator, shared it has managed to continue its momentum in the first quarter of 2015, as net gaming revenue has grown to €661,000 per day, compared to €559,000 in the first quarter of 2014.
