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Gaming group GVC boosted by Bwin takeover

Discussion in 'Market News' started by Lily, Sep 20, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Company says growth prospects for combined group better than it expected

    Gaming group GVC said its £1.1bn purchase of rival Bwin after a takeover battle with 888 was going better than expected, and it plans to restart paying dividends to shareholders next year.

    The company said first half profits more than doubled from €21.8m to €51.3m, while the integration of Bwin would lead to annual savings of €125m by the end of 2017. Chief executive Kenneth Alexander said:

    We believe the organic growth potential of the group is now greater than originally anticipated at the time of the bwin.party transaction acquisition.

    Mobile sports wagers were up an impressive 55% year on year (and mobile gaming by 98%), and the group benefited from a favourable run of results - with a gross win margin up from 7.7% to 10.0%, albeit also benefiting from improvements to the trading platform

    It has been a period of considerable achievement for GVC. The acquisition of bwin.party has started well, with hard evidence of material revenue synergies coming through already, through more efficient marketing spend, improved VIP retention and a step up in the trading platform. In addition, the group pushed through its move to a premium listing (it joined the FTSE MidCap index this week), as well as the early agreement of a low-cost loan facility to replace its somewhat usurious Cerberus debt facility.

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