The acquisition policy of GVC is bearing fruit, with the igaming group reporting a 17 per cent increase in net gaming revenue to €925.6m last year.
The gain from bwin.party assets that were bought three years ago delivered what CEO Kenneth Alexander described as “material value”, as the results were revealed in the same week that the group’s shareholders voted to support the proposed £4bn acquisition of Ladbrokes Coral.
GVC, which operates brands including Sportingbet, Partypoker and Foxy Bingo, saw “clean” EBITDA for 2017 rise 40 per cent, from €170.5m to €239.5m. The adjusted profit before tax was up 182 per cent, to €178,7m over the period.
Sports revenue was up 20 per cent on 2016 and games revenue rose by 12 per cent, while GVC disposed of Headlong and its associated Turkey-facing businesses.
In terms of the first quarter of 2018, GVC has made a strong start with net revenue up by 16 per cent, up to March 4.
“GVC achieved a significant amount in 2017 and as these numbers demonstrate, we have delivered material value from the bwin.party acquisition,” Alexander said.
“It is particularly pleasing that we have been able to produce such strong results at the same time as completing the integration of bwin.party and continuing to enhance our product offering.
“Our core markets offer attractive growth prospects but we also recognise the opportunity presented by our proprietary technology to create significant synergies through M&A. The importance of geographic diversification is also a key dynamic given the evolving regulatory backdrop.
“Thus the acquisition of Ladbrokes Coral Group represents an exciting opportunity, bringing together industry leading online and retail brands. There will be plenty of hard work ahead, but we are confident that GVC will deliver once again.”
