Aim-listed gambling outfit GVC Holdings (GVC) has maintained its reputation for generous shareholder returns by announcing a 14 per cent increase in its annual dividend. And that's not counting a special dividend worth 1.5ȼ a share. Accounting for the fact GVC pays dividends quarterly, the company returned 68 per cent of cash profits to shareholders last year.
The 2014 World Cup was a "resounding success" for GVC, according to management. A €7m (£5.1m) marketing push meant customer numbers shot up – and stayed there. Chief executive Ken Alexander says new player numbers "roughly doubled" between June and July. This prompted the first special dividend of the year - again worth 1.5ȼ a share - last September.
But GVC faces tough comparative figures this year, given the lack of a major football tournament. Mr Alexander remains bullish: current trading is at "record levels", he says, with net gaming revenues year to date currently tracking 18 per cent ahead of last year.
The new 15 per cent Point of Consumption tax should cost the company roughly €2m this year. Analysts at Cenkos expect pre-tax profits of €44.2m and EPS of 63.9ȼ this year, compared to €42.9m and 63.8ȼ in 2014.
| GVC HOLDINGS (GVC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 463p | MARKET VALUE: | £284m | |
| TOUCH: | 462-464p | 12-MONTH HIGH: | 502p | LOW: 368p |
| DIVIDEND YIELD**: | 8.7% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 244ȼ* | NET CASH: | €10.6m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2010 | 54.9 | 4.1 | 11.1 | 20.0 |
| 2011 | 44.3 | -0.3 | -0.5 | 21.0 |
| 2012 | 60.3 | 10.8 | 29.3 | 26.0 |
| 2013 | 170 | 13.0 | 22.5 | 48.5 |
| 2014 | 225 | 41.3 | 66.4 | 55.5 |
| % change | +32 | +218 | +195 | +14 |
Ex-div: 9 Apr Payment: 6 May *Includes intangible assets of €154m or 252ȼ a share **Excludes special dividend worth 1.5ȼ a share £1 = €1.37 | ||||
