GVC online revenues climb 18% in H1 as UK retail cuts bite
Operator reports double-digit growth in all key online verticals and markets
GVC Holdings has reported an 18% year-on-year rise in online revenues for H1 2019, driven by strong growth across all key verticals and markets.
In a trading update this morning, GVC announced revenues from its sports betting arm had increased 19%, with a 7% rise in sports bets and gross win margin of 11.3, while gaming was up 18%.
The operator also revealed double-digit growth in all its major operating territories, with UK online revenues increasing 19% year-on-year in Q2.
Australian net gaming revenues in Q2 increased 38% year-on-year in constant currency, while revenues from Brazil were up 38%.
In Europe, GVC said net gaming revenues from its German operations increased 24% YoY in constant currency during Q2, although it also highlighted potential future costs associated with a new German sports licence.
Speaking about today’s results, GVC CEO Kenny Alexander said that the online division was “delivering continued material market share gains across all major territories.”
GVC also confirmed its Roar Digital JV business with MGM Resorts was on track to launch full online operations in time for the start of the new NFL season.
The sports betting operator revealed that its UK retail like-for-like net gaming revenues dropped 19% YoY due to the cuts in fixed odds betting terminals maximum stake to £2.
“The transition to a post £2 stakes-cut environment in UK Retail is progressing very well and we believe the Ladbrokes Coral estate is best-placed to take market share,” Alexander added.
Despite the fall in its UK retail revenues, GVC says that it expects its European retail net gaming revenues to rise by 12% y-o-y, with an 8% rise in over-the-counter wagers.
Total group net gaming revenues increased 6% year-on-year in constant currency H1 2019.
In addition, GVC has said its strong financial performance will mitigate any potential costs associated with the implementation of new sports betting licences in Germany, once regulators in Hesse confirm all regulatory requirements.