GVC sees Q3 boosted by online sports betting, buys Bet.pt

GVC Holdings on Thursday raised earnings expectations for 2020 as net gaming revenue increased 12% in the third quarter. It also said it has agreed to buy Portuguese gambling company Bet.pt, and that its U.S. expansion was gathering momentum.

The parent group of Ladbrokes, Coral, Eurobet and bwin brands expects 2020 earnings before interest, taxes, depreciation and amortization between 770 million pounds and 790 million pounds ($994.8 million to $1.02 billion), up from the previous guidance last month of 720 million to 750 million pounds.

Net gaming revenue from the online business climbed 26% in the three months to September 30, driving a double-digit increase in overall sales. U.K. retail was down 5% and European retail edged up 2%. The return of major sports, including horse racing and the English Premier League, boosted the company in the period, as online sports revenue grew 27% year-over-year.

"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," said Shay Segev, GVC's Chief Executive Officer in the official statement.

This includes its U.S. joint venture BetMGM, which is live in eight states and has a market share of 17% in the country already, and he says it will continue growing “from strength to strength as we roll out into new states.” GVC said BetMGM continues to make good progress and it is expected to deliver full-year revenue between $150 million and $160 million. The share of the full-year loss from the joint venture for GVC is forecast to be around 60 million pounds, the company said.

The firm also announced an agreement to acquire Bet.pt, a Portuguese gambling operator. GVC expects the Portuguese sports-betting and gaming market to more than double by 2023 to 450 million euros ($529.5 million).