The tussle to take over rival Bwin.Party Digital Entertainment (BPTY) has done little to distract GVC (GVC) from the task at hand. The group is fighting it out with 888 (888) - which submitted a new offer on 1 September to snap up Bwin - but leaving the potential takeover to one side, the group posted robust numbers.
Profit took a hit from acquisition fees incurred so far, as well as from the UK's 'point of consumption' tax and a VAT increase in Germany. Nevertheless, sports net gaming revenue (NGR) rose 6 per cent to €303m (£223m), while gaming NGR - which includes the casino division - shot up by a quarter to €365m. Encouragingly, 73 per cent of its gross gaming revenue came was 'in-play' - bets made during matches - and mobile now represents roughly 38 per cent (22 per cent in last year's first half). The Isle of Man-based company, which owns brands including Sportingbet and Casino Club, also saw the number of people betting per day rise.
The group set aside €0.9m (£0.7m) to fund its application process for a licence in Romania, while optimism is needed about how much GVC's exposure to its important Greek market will provide in the coming years. But management says there have been "signs of greater activity" there.
Analysts at Edison expect pre-tax profit of €39.6m, leading to EPS of 59.8¢ for the full year, compared with €41.3m and 61.4¢ in 2014.
| GVC (GVC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 455p | MARKET VALUE: | £279m | |
| TOUCH: | 450-460p | 12-MONTH HIGH: | 501p | LOW: 388p |
| DIVIDEND YIELD: | 8.8%* | PE RATIO: | 10 | |
| NET ASSET VALUE: | 224¢Ɨ | NET CASH: | €13.6m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢)* |
|---|---|---|---|---|
| 2014 | 105 | 18.0 | 28.8 | 27.5 |
| 2015 | 121 | 17.1 | 27.3 | 26.5 |
| % change | +15 | -5 | -5 | -4 |
Ex-div: ** Payment: ** *Excludes special dividends of 4.5¢ in first-half 2014 and 1.5¢ in first-half 2015 **Second-quarter dividend of 14ȼ a share paid on 6 May 2015. Third-quarter dividend of 14ȼ a share paid on 17 August 2015 ƗIncludes intangible assets of €155m, or 253ȼ a share £1=€1.36 | ||||
