GVC profits rise 28% in 2014
Operator posts full-year EBITDA of 49.2m after 32% increase in net gaming revenues
GVC Holdings this morning declared to have “never been in a stronger position” after announcing 2014 EBITDA had increased by 28% to 49.2m.
The profit rise, which was broadly in line with expectations, came on the back off strong growth in sportsbook and gaming net revenues which were up 21% and 26% respectively to 110.2m and 114.6m.
Total net gaming revenues (NGR) amounted to 224.8m, a 32% increase on 2013, which the company said had been boosted by a “strong World Cup performance” around which it had invested approximately 7m on marketing.
Sportsbook wagers across the year were up 25% to 1.46bn at a margin of 9.8%, slightly higher than the 9.6% recorded during the previous year, at an average of 4m per day.
GVC, which operates the Sportingbet and Betboo brands, said its employee base had grown beyond the 700 mark however expenditure as a ratio had decreased from 63% to 60%.
The company also said momentum had continued into 2015 and reported daily NGR up to and including 18 March had risen 18% year-on-year to 661,000 with daily deposits up 20% to 1.7m.
Kenneth Alexander, GVC Holding chief executive, said the results had put the firm in an “enviable position” in the market.
“This is an exceptional performance and our growth continues in the broad spread of markets in which we operate,” Alexander said.
“We control our costs very tightly, have highly motivated employees who have financial incentives aligned to shareholders and we are in a strong position to be a consolidator in the industry.
“GVC has never been in a stronger position and we look forward to 2015 and beyond with confidence,” he added.
GVC’s share price had increased almost 10p this morning to 463.64p at the time of writing.