GVC reports 8 percent rise in net gaming revenue

The global sports-betting and gaming group has released a trading update for the period 1 January to 31 March 2019.

"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," CEO Kenneth Alexander said.

The key highlights of the Q1 2019's trading update included:

• Online NGR +17% (+18% cc2), continued strong volume growth in all major territories
• UK Retail like-for-like (“LFL”)3 NGR flat (LFL OTC NGR -6%, LFL Machines NGR +4%), flat OTC wagers benefiting from recycling
• European Retail NGR +2% (+3% cc2), sports wagers 13% ahead
• Total Group NGR +8% (+9% cc2)

The UK-based bookmaker has been expanded through partnerships and especially focusing on the sports-betting and gaming opportunities in the United States.

"The impact of soft gross win margins in Italy and the UK was offset by improved margins in other territories, demonstrating the benefit of both geographic and product diversification across the Group,"  Kenneth Alexander continued.

However, in Britain, restrictions on Fixed Odd Betting Terminals was expected to result in the closure of up to a 1,000 shops and impact GVC’s 2019 core profit by about 135 million pounds (USD 176.6 M), Reuters reports.

"In UK Retail and European Retail, improved sports wagering growth helped offset softer sports gross win margins. New B2 machines stakes restrictions were implemented in the UK on 1 April 2019 and we expect it to be several weeks before we can start to assess the impact. At this early stage of the year, the Board is confident of delivering EBITDA and operating profit in-line with expectations," the company's CEO concluded.