GVC Q1 online growth offsets retail slowdown
Online net gaming revenue climbs 17% as soft gross win margins in Italy and the UK are offset by other markets
GVC this morning reported online growth of 17%, offsetting a first quarter slowdown in the operator’s UK retail business.
Total net gaming revenue (NGR) increased by 8% for the period ending 31 March 2019, as the London-listed firm reported “strong volume growth in all major territories”.
GVC CEO Kenny Alexander said: “This trading update reflects a continuation of the strong trends reported on 5 March 2019, and represents an excellent start to the year.
“We continue to see good volume growth across all major online brands and territories and we remain very confident of achieving our target of double-digit online NGR growth.
“The impact of soft gross win margins in Italy and the UK was offset by improved margins in other territories, demonstrating the benefit the group’s geographic and product diversification.”
The operator reported that improved growth in sports wagering in the UK and European retail markets helped offset softer sports gross win margins.
Alexander conceded it was still too early to assess the impact of FOBT stake restrictions that came into force on 1 April.
“At this early stage of the year, the Board is confident of delivering EBITDA and operating profit in-line with expectations,” Alexander added.
Read EGR Intel’s recent interview with Alexander here.