By Tim Poole
GVC Holdings has reported a 2% year-on-year rise in 2019 proforma group net gaming revenue, to £3.66bn ($4.73bn).
This figure was up 3% on a constant currency basis, with over 96% of group revenue coming from regulated markets or markets in the process of regulating.
However, pro forma underlying EBITDA fell 10% to £678.3m, although this total was up 14% after adjusting for the estimated impact of the Triennial Review (mainly a reduction of fixed-odds betting terminal stake limits from £100 to £2) and incremental taxes.
Online underlying EBITDA was up 20% after this adjustment and UK retail underlying EBITDA up 5%.
But underlying operating profit fell 20% to £490.1m
On a reported basis, while GVC’s £3.66bn in net gaming revenue was up 23% and underlying EBITDA up 19%, group loss after tax was £140.7m.
This arose from £630.1m in costs related to the acquisitions of Ladbrokes Coral and Bwin, as well as a non-cash impairment of the group’s Australian online business.
GVC CEO Kenny Alexander said: "Our first full year since the Ladbrokes Coral acquisition has been a good one and the performance has continued to be underpinned by our unique and highly effective operating model.
"We are delighted with the progress being made on the Ladbrokes Coral integration. In the US, the launch of BetMGM on the GVC platform in New Jersey was an important milestone for our business and enables us to remain on track to deliver on our ambitions in this exciting market.”
GVC’s share price has initially fallen from £8.11 to £7.83 following the operator’s financial report.
Gambling Insider will be speaking with GVC CEO Kenny Alexander about the results later today.