2. GVC Holdings (2018)
Financials: Online net gaming revenue was up 28% in Q3, following the NGR of £895.4m reported in H1. Market cap now £4.5bn
Strategy & impact: Continues to wield its M&A magic with acquisition of Ladbrokes Coral and integration has been its main focus of the year
Geographic reach: GVC is licensed in more than 20 jurisdictions and is a leading force in critical markets including the UK, Germany and the US
Influence & leadership: Is now the UK’s largest high street bookmaker and the biggest listed online-led operator in the world following its acquisition of Ladbrokes Coral
If any company has come seriously close to toppling bet365’s perpetual dominance at the top of the EGR Power 50 it is GVC Holdings. Yet while GVC may well be the biggest listed online-led operator, just as it claims, the operator fell just short of supplanting bet365 as the largest online gambling company in the world this time around.
It has been another transformational 12 months for a company which has simultaneously leapfrogged Paddy Power Betfair into second place and fended off competition from The Stars Group. Neither of these achievements should be taken lightly. And GVC was recently rewarded for its efforts with a hat-trick of wins at the EGR Operator Awards 2018, taking home trophies for Casino Operator, Poker Operator and the coveted Operator of the Year award.
But it’s hardly surprising the firm is being lavished with praise. Its ambitious deal to acquire bookmaking giant Ladbrokes Coral for up to £4bn propelled the enlarged GVC group on to the FTSE100 index and enabled the company to gain a stronger foothold in the UK. The takeover came just a few months after it completed its bwin.party transaction, and as one judge at the EGR Awards put it: “To complete one merger in this industry is bold, to take on two is truly brave and that GVC have managed to pull it off and emerge with all brands stronger as a result is a truly impressive achievement.”
The operator’s online division continues to benefit from the synergies being delivered from what appears to be another successful integration, and GVC’s recent Q3 trading update shows its digital arm is in good health with revenues increasing 29% in constant currency. The Ladbrokes and Coral brands both seem to be enjoying life as part of the GVC family too after posting quarterly double-digit growth year-on-year.
Add to this GVC’s monumental deal with MGM to take on the nascent US sports betting market and all the ingredients are there for the operator to have yet another successful year.
So does GVC have any tricks up its sleeve to replace bet365 at the top of the egaming pyramid in 2019? Watch this space.