B2C and B2B provider of online gaming and sports betting options GVC Holdings PLC today reported its financial results for the six months ended June 30, 2016. Net gaming revenue was up 8% year-on-year to reach €441.8 million. Revenue increased 12% on a constant currency basis.
Clean EBITDA amounted to €104.4 million during the period in review, up 42% as compared to the €73.5 million reported for the same six months of the previous year. Adjusted profit before tax totaled €51.3 million compared to €21.8 million generated during the first half of 2015.
GVC Holdings completed the acquisition of fellow online gambling operator bwin.party on February 1, 2016, thus combining the latter’s iGaming and betting brands with its own and considerably expanding its presence across multiple jurisdictions. During the six months ended June 30, the company registered strength in all gambling brands it now manages.
The company reported a 4% increase in sports wagers over the reviewed period to €2.3 billion, compared to the amount of €2.2 billion from a year ago. The growth was attributed to the bwin.party acquisition. GVC Holdings also highlighted the fact that such an increase was achieved despite the fact that it had spent only 21% of net gaming revenue on marketing.
Mobile was also listed as a major growth driver during the first half of the year. Sports wagers made on mobile increased 55% during the reviewed six months. Mobile casino games grew 98% during the same period. GVC Holdings noted that with the upcoming launch of new products and the deployment of improved technology mobile will certainly continue growing.
Of the ongoing integration of bwin.party’s operations into GVC Holdings’, the gambling operator said that it all goes according to plan and that the targeted early-2017 completion deadline will likely be met. According to GVC Holdings, the bwin.party acquisition will eventually result in annualized synergies of €125 million by the end of 2017.
During the half-year in review, the gambling group signed its largest B2B deal with major UK sports betting operator Betfred.
Commenting on the latest results published, GVC Holdings CEO Kenneth Alexander said that they are delighted with another period of considerable growth. The executive added that the group is in a good position to overcome all the challenges related to the fact that it operates in an extremely competitive, regulated, and taxed environment. Of the recent bwin.party transaction, Mr. Alexander noted that he believes it has secured his company with even better organic growth potential than originally projected.
