GVC revenues exceeded expectations due to success in the online segment
The shares of GVC Holdings rose in price after the Ladbrokes operator said that the revenues of 2018 exceeded expectations.
The company, which also manages the Coral, Bwin, PartyGaming and Sportingbet brands, said after the close of trading that, according to its estimates, revenue in 2018 will grow by 9% compared to last year. This is due to the stable performance of the online sector and the increased contribution to the European retail business.
Total net income from online games for the year increased by 19%. Revenues increased in all key indicators: super-profits from GVC sports betting made up 20%, gambling sector - 16%. B2B operator business also showed good results, an increase of 17% compared with 2017.
The European retail business also experienced a significant increase with an increase in NGR by 16%, which helped offset the decline in revenue in the UK by 3%.
As a result, the operator estimates that the basic earnings before interest, taxes and depreciation will be from £ 750 million to £ 755 million. At the same time, revenue in the fourth quarter increased by 5%. March 5 will be published a financial report.
The British retail business experienced difficulties during the quarter. Thus, total revenue fell by 3% compared with the previous year. This was due to a 10% decrease in over-the-counter income. Profit from slot machines increased by 3%. European retail business also reported a decline in fourth-quarter revenues, namely, by 7%, despite growth in Belgium and Ireland - 15% and 8%, respectively.
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