GVC Releases Q1 Reports and Betway Furthers Partnership with the Grand National Festival
GVC Holdings announced that there was a strong performance from its online gaming and online betting assets, which helped result in a flat performance from its United Kingdom operations in Q1 of this year. The UK gambling operator reported an increase of eight percent in its NGR (Net Gaming Revenue) for the first quarter, although it did not release any numbers.
GVC Holding Releases Its Reports with Great rise in NGR
The increase in the NGR was a result of the seventeen percent increase in online Net Gaming Revenue. Also, GVC has announced that it witnessed growth in all of its major gambling territories. For example, there was a 16 percent increase in sports gaming NGR when compared to last year, as well as a 20% increase in gaming from Q1 of 2017. The new results that GVC released made a change to its reporting structure. Now, the operator breaks its online reporting to B2B, gaming, and sports, so that it can be in line with other operators in the industry. Before that amendment, GVC used to split the revenue between two entities only, gaming brands and sports brands.
It is not all Positive Numbers for GVC UK Retail
On the other hand, the UK Retail business of GVC Holdings saw stakes and revenue remaining flat during Q1 of this year. The Chief Executive of the operator, Kenneth Alexander, stated that with the cut in the maximum stake of the FOBTs, the operator would need several weeks before it can assess the effect of the new rule, which started implementation on the 1st of April. As for the European retail business of the company, it saw an increase in Net Gaming Revenue of two percent, which got a great boost from the 13 percent jump in sports wagers during the same period.
CEO Comments on the Financial Report
Kenneth Alexander stated that the trading update is a reflection of the continuation of the strong trends that they reported in the full year result on the 5th of March. He stated that they are continuing to witness a great deal of growth across all of the major online brands across a variety of territories and that they are confident that they will achieve their target of a double-digit NGR online growth. The CEO also added that the improved win margins in other territories were able to offset the minor gross win margins in the United Kingdom and Italy, which demonstrates the benefit and importance of product and geographic diversity across GVC Holdings. He then continued by saying that the board of GVC Holding is confident that the company will deliver both operating earnings and profit earning before amortization, depreciation, tax, and interest that are in line with the full year expectation.
Betway Extends Its Partnership with Grand National Festival
In related news from the UK, the online gaming operator, Betway, has announced that it has extended its betting partnership with the showpiece horse racing event in the UK, the Grand National Festival. Betway will continue being the official betting partner to the racing event for five more years.