GVC Holdings Ups Full-Year Projections Following Online Gaming Growth

Fixed odds betting terminals (FOBTs) and tighter regulations aren’t hampering growth at GVC Holdings according to the operator’s latest financial filing.

GVC Holdings revenue

GVC Holdings has increased its full-year projections following a strong start to 2019. (Image: Welch LLP)

Summarising its H1 results and looking forward to the end of 2019, GVC’s CEO Kenneth Alexander way buoyant on August 15.

Describing the company’s online operating model as “highly effective,” Alexander is confident full-year profits will exceed previous expectations.

Online Gaming at GVC Holdings Exceeds Expectations

According to the interim report, proforma net gaming revenue (NGR) is five percent ahead of projections at £1.8 billion. Contributing to that improved full-year projection is a 17 percent surge in online gaming revenue.

Although retail revenue was down as expected, the results weren’t as damaging as GVC executives had feared.

In fact, by growing its online verticals, GVC has also managed to save part of its betting shop portfolio. As per the press update, the number of stores set to close has fallen from 1,000 to 900.

That may only be a slight reduction but it’s significant. By demonstrating that online revenue can be used to support offline interests, GVC could inspire other operators to follow suit.

Indeed, with the likes of William Hill also expanding their online operations, we may see more efforts being made to keep betting shops alive.

Profits Not at the Expense of Responsibility

Doubling down on the positive financial forecast, Alexander said that revenue hasn’t come at the expense of responsible gambling.

The Group made a number of significant Responsible Gambling commitments in the period,” the GVC boss said on August 15.

As well as taking problem gambling seriously, the UK gaming operator has tried to improve the industry’s relationship with football.

Having previously called for a complete ban on sports betting ads, Alexander confirmed that money made from GVC’s links to football has been put to good use.

We donated all our marketing assets held at 42 English and Scottish football clubs, including perimeter hoardings, to GambleAware’s Bet Regret safer gambling campaign,” Alexander continued.

Even with tougher operating conditions, GVC is showing that the UK is still a lucrative market. Although adjustments might be necessary, the growth of online gaming is having a positive impact across all verticals, something other operators will be happy to see.

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