GVC reports 28% uptick in online Q3 revenue
FTSE 100 operator raises full year EBITDA guidance with sports betting back in business as third-quarter wagers jump 25%
GVC has recorded a 28% rise in total online net gaming revenue (NGR) for Q3 2020 to mark the operator’s 19th consecutive quarter of double-digit digital growth.
The FTSE 100 giant reported a 27% uptick in online sports betting NGR for Q3 on a constant currency basis, as sports wagers jumped by 25% on a margin of 0.2% amid the return of sport.
Third quarter NGR rose by 28% in the firm’s online gaming segment, while total online group NGR increased by 14% for the reporting period.
GVC’s UK retail arm (Ladbrokes and Coral) recorded an NGR dip of 5% as shops continue to be impacted by the coronavirus pandemic, although European retail remained flat at 2%.
The operator’s US-facing BetMGM joint venture is now expected to record full year revenue ahead of expectations at $150m-$160m, having accrued 17% market share in states where it has gone live.
GVC also revealed the Q3 acquisition of Portuguese online betting brand Bet.pt, which obtained a localised sports betting licence in 2016 and a casino licence in 2017.
“This has been another strong period for GVC,” said CEO Shay Segev.
“We have delivered our 19th consecutive quarter of double-digit online growth, along with market share gains in all our major territories.
“The momentum that we are seeing across the group is a clear testament to the resilience of our highly diversified business model, the attractiveness of our brands and products, the power of our proprietary technology platform and the hard work and dedication of our teams around the world.
“While the risk of further restrictions as a result of Covid-19 mean that we remain cautious on the short-term outlook, in the longer term we are confident of being able to continue delivering sustainable growth for all our stakeholders,” he added.
GVC now expects EBITDA for the full financial year to be in the range of £770m to £790m, approximately £50m ahead of previous expectations, subject to no further material disruptions.
“We are confident in our ability to manage these disruptions but remain cautious on the outlook given the ongoing uncertainty that Covid-19 is causing,” the operator added.
GVC’s share price increased by 8% to 1,135p in early trading on the London Stock Exchange.
Peel Hunt analyst Ivor Jones said: “GVC has continued its pattern of delivering upgrades, increasing geographic diversity, cocking a snook at longer-standing competitors in the US and intelligent M&A.
“It is well placed for further success and we reiterate our Buy rating,” he added.