With a strong first half of 2019 to June 30, GVC Holdings stays at the number two position in terms of online gambling market share.
In the financial figures released this week for the first six months of 2019, the company’s revenue jumped 5 percent – more than expected – and its underlying earnings also jumped 5 percent to 5% to £366.8m.
Despite an increase in the underlying earnings and overall revenue growth, the compliance costs due to new regulatory measures in the UK dampened its after-tax profit figures. GVC’s posted a £2.1m profit for the first six months of 2019 while for the same period in 2018 it earned £113.8m.
However, following the H1 results, GVC revised and improved its full-year earnings expectations to land between £650-£670m. Earlier the company expected to make around £630m.
While GVC’s online revenue rose 17% to £1.02b it reported an underlying operating profit of £185.5m (+9%). Revenue from sports betting operations jumped 18% to £462.3m.
The growth in the UK gambling market was surprising as revenue increased by 13% in H1. GVC described its recently acquired betting chain Ladbrokes.com’s performance as “particularly impressive.”
Retail revenue from the UK market was disheartening as it dropped 12% to £586.8m. The reduced stakes on FOBTs which came into effect in April this year was to be blamed.