GVC Holdings, the world’s largest online-led sports betting and gaming company following its acquisition of Ladbrokes Coral last year, has posted record results for FY2018.
The group’s proforma net gaming revenue was up by nine per cent to £3.571bn, boosted by online growth of 19 per cent, while underlying EBITDA rose by 13 per cent to £755.3m and underlying operating profit 19 per cent to £610.1m.
GVC also reported a strong start to the current year up to February 24, with group NGR up 11 per cent and online NGR rising by 22 per cent.
Within the final results were details of GVC’s plan to move its online gaming servers to Ireland in order to maintain seamless operations post-Brexit. Plans have also been prepared to operate parts of the business that have EU customers under Malta licences.
With its UK retail business impacted by the planned reduction in FOBT minimum stakes, the company stated that integration of Ladbrokes Coral was “progressing well” and that it was on track to deliver £130m cost synergies and £30m capex synergies.
GVC’s CEO Kenny Alexander said: “The group’s full year results reflect a very strong performance with proforma net gaming revenue nine per cent ahead of last year and proforma underlying EBITDA 13 per cent ahead.
“2018 was a transformational year for the group with the completion of the Ladbrokes Coral acquisition in March making the group the largest online-led sports-betting and gaming operator in the world. Excellent operational execution, effective marketing and a good World Cup helped both the legacy GVC and the acquired Ladbrokes Coral businesses perform ahead of expectations and materially ahead of the market, delivering market share gains in all our major territories.
“The GVC operating model leverages the group’s leading proprietary technology and product development capability, applying central marketing expertise alongside local operational execution. This model is proving highly effective. Combined with the benefit of being a truly global scale operator, together with the opportunities provided by the integration of Ladbrokes Coral and our joint-venture in the US with MGM Resorts, the Board is confident the group is well-placed to absorb the impact of the Triennial Review and associated tax increases in 2019, and deliver strong EBITDA growth in future years.”
