# GVC Holdings PLC Global scale and market diversification delivering very strong online growth

- Link: https://www.directorstalkinterviews.com/gvc-holdings-plc-global-scale-and-market-diversification-delivering-very-strong-online-growth/412768565
- Published: 2019-03-05T07:49:09+00:00
- Author: Charlotte Edwards

**GVC Holdings PLC** (LON: GVC), the global sports-betting and gaming Group, is 
pleased to announce its results for the year ended 31 December 2018.

  |

Group

  |

Reported^(1)

  |

Proforma^(2)

  |  
 |

Year ended 31 December

  |

2018

  |

2017

  |

2018

  |

2017

  |

Change

  |

Constant currency^(3)

  |  
 |

 |

£m

  |

£m

  |

£m

  |

£m

  |

% 

  |

% 

  |  
 |

Net gaming revenue (NGR)

  |

2,979.5

  |

815.9

  |

3,571.4

  |

3,288.1

  |

9%

  |

9%

  |  
 |

Revenue

  |

2,935.2

  |

789.9

  |

3,523.6

  |

3,247.6

  |

8%

  |

9%

  |  
 |

Gross profit

  |

2,004.2

  |

575.3

  |

2,404.4

  |

2,256.3

  |

7%

  |

 |  
 |

Underlying EBITDA^(4)

  |

640.8

  |

211.3

  |

755.3

  |

666.5

  |

13%

  |

 |  
 |

Underlying operating profit^(5)

  |

520.8

  |

169.2

  |

610.1

  |

514.1

  |

19%

  |

 |  
 |

Underlying profit before tax^(5)

  |

434.6

  |

151.0

  |

 |

 |

 |

 |  
 |

Loss after tax

  |

(56.4)

  |

(34.9)

  |

 |

 |

 |

 |  
 |

Diluted EPS (p)

  |

(12.2)

  |

(11.6)

  |

 |

 |

 |

 |  
 |

Continuing adjusted diluted EPS^(6) (p)

  |

76.3

  |

43.6

  |

 |

 |

 |

 |  
 |

Total Dividend per share (p)

  |

32.0

  |

29.8

  |

 |

 |

 |

 |

**Financial highlights** (proforma basis2)

· Proforma Group NGR up 9% at £3,571.4m

· Proforma Group revenue up 8% at £3,523.6m

· Proforma Group underlying EBITDA4 up 13% at £755.3m

· Proforma Group underlying operating profit5 up 19% at £610.1m

Financial highlights (reported basis1)

· Reported Group NGR up 265% at £2,979.5m

· Reported Group underlying EBITDA4 up 203% at £640.8m

· Reported Group loss after tax of £56.4m after charging £434.2m (£453.5m pre-tax)
of separately disclosed items of which £322.5m relates to the non-cash amortisation
of acquired intangibles

· Adjusted diluted EPS6 of 76.3p up 75%

· Second interim dividend of 16.0p per share taking the full year dividend to 32.0p,
an increase of 7% y-o-y

· Adjusted net debt at 31 December 2018 of £1,896.6m (2.5x underlying proforma EBITDA)

**Operational highlights** (proforma basis2)

· Very strong growth in Online with market share gains in all key territories; NGR
up 19% (+21% in constant currency (“cc”)3); Sports brands NGR +20% (+22% cc3) and
Games brands NGR+16% (+16% cc3)

· UK Retail like-for-like7 NGR -3%; OTC trends in-line with expectations, Machines
returned to growth in H2

· European Retail NGR +16% (+14% cc3) with growth in all territories

· Integration of the Ladbrokes Coral business progressing well; on track to deliver
£130m cost synergies and £30m capex synergies. Playtech agreement gives greater 
flexibility

· US: Business well placed for growth; appointment of key roles

Current Trading2 (Period 1 January 2019 to 24 February 2019)

· Strong current trading. Group NGR +11% with Online NGR +22%.

> **Kenneth Alexander (CEO) said:**
> “The Group’s full year results reflect a very strong performance with proforma
> net gaming revenue 9% ahead of last year and proforma underlying EBITDA 13% ahead.
> 2018 was a transformational year for the Group with the completion of the Ladbrokes
> Coral acquisition in March making the Group the largest online-led sports-betting
> and gaming operator in the world. Excellent operational execution, effective marketing
> and a good World Cup helped both the legacy GVC and the acquired Ladbrokes Coral
> businesses perform ahead of expectations and materially ahead of the market, delivering
> market share gains in all our major territories.
> The GVC operating model leverages the Group’s leading proprietary technology and
> product development capability, applying central marketing expertise alongside
> local operational execution. This model is proving highly effective. Combined 
> with the benefit of being a truly global scale operator, together with the opportunities
> provided by the integration of Ladbrokes Coral and our joint-venture in the US
> with MGM Resorts, the Board is confident the Group is well-placed to absorb the
> impact of the Triennial Review and associated tax increases in 2019, and deliver
> strong EBITDA growth in future years.”

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