EGR Power 50 2019: GVC Holdings (02)
02. GVC Hodlings (02)
FINANCIALS: Delivered double-digit online growth in all three quarters as digital revenue for H1 surpassed £1bn. Full-year EBITDA has now risen to between £670m and £680m
STRATEGY & IMPACT: GVC is usually at the centre of the M&A merry-go-round and has been one of the most vocal supporters of responsible gambling measures
GEOGRAPHIC REACH: The firm is licensed in more than 20 jurisdictions and is a leading force in critical markets including the UK, Germany and the US
INFLUENCE & LEADERSHIP: GVC is the UK’s largest high street betting operator and claims to currently be the biggest listed online-led operator in the world
GVC Holdings is the worthy runner-up again this year and remains the strongest publicly listed firm in the Power 50, having also retained EGR’s Operator of the Year award. A favourite phrase of CEO Kenny Alexander is that “the proof is in the pudding”, and GVC’s consistent financial performance speaks for itself. Double-digit revenue growth has remained a constant for the London-listed firm, which has barely broken its stride despite undergoing a complex technical migration with UK giant Ladbrokes Coral for much of the last 12 months.
The GVC success story has seen many of its biggest rivals turn to consolidation in a bid to inspire a growth turnaround (TSG’s purchase of Sky Betting & Gaming and Flutter’s attempt to buy them both). Whether those firms have the technology, resources or the know-how to cope with an all-encompassing technology project remains to be seen; neither have the track record that GVC has in this space.
It hasn’t all been plain sailing at GVC though, with a number of high-profile departures during the period, including director of trading Jim Humberstone, CFO Paul Bowtell, Ladbrokes Coral MD Mark Kemp and ex-Ladbrokes Coral chief Andy Hornby. GVC chairman Lee Feldman will also be replaced early next year. But personnel turnover is part and parcel of all the wheeling and dealing GVC has done. And despite a relatively quiet year, it shows no sign of stopping. Talk to anyone in the City and they’ll tell you that GVC is kicking the tires on 10 transactions at any one time and Alexander has one big deal left in him.
In the meantime, there’s more growth to be had around the globe, with Brazil highlighted as a massive opportunity. There’s the US too, where GVC is up and running with BetMGM. The brand has arguably punched below its weight but recently inked an affiliate deal with Yahoo Sports that will see BetMGM odds integrated into the Yahoo app, putting them in front of millions of US customers. Yahoo is also one of the biggest fantasy operators in the US and could provide a rich vein of customer acquisition. Combine that with GVC’s tech and MGM’s brand and casino customers, and BetMGM could be challenging FanDuel in the US sooner rather than later.