Online casino and sportsbook operator GVC Holdings has cited its acquisition of Sportingbet’s non-Australian business last March as the reason behind a significant year-on-year increase in revenue during the three months to March 31, 2014.
The company posted total proforma revenue of 180.6 million for the first quarter of 2014, up 69% from the €107.1 million achieved in the corresponding period last year.
In addition, clean EBITDA for the most recent quarter experienced a year-on-year increase of 148% to €38.3 million.
The acquisition of Sportingbet last year proved to be effective in terms of sports betting with the amount of sports wagers placed in Q1 of 2014 up to €1.7 billion, an increase of 125% on the €518.9 million in the first quarter of last year. A total of €661.9 million of these wagers were placed via Sportingbet.
As a result, sports revenue grew to €50.6 million in the first quarter of 2014 while gaming revenue also increased to €56.5 million in the same period.
In addition, GVC has declared a quarterly dividend of 11.5 €cents as well as a special dividend of 4.5 €cents.
Kenneth Alexander, chief executive of GVC Holdings, said: “Executing the complex acquisition and turnaround of Sportingbet has been a milestone for GVC and has led to greater geographical diversification and a significant increase in profits and dividends.
“We are now ready for the next stage in our corporate development and further geographic expansion through organic growth and acquisitions. GVC aims to deliver this without diluting the dividend.
“The board is confident of meeting current market expectations for the 2014 financial year as underpinned by our proposed dividend of 16 €cents total.”
source : www.igamingbusiness.com
