The Isle of Man-based gambling operator GVC Holdings has revealed that its profit rose over the first half of 2018, with the gains brought by the World Cup helping its performance. The company further noted that more cost savings from the £4-billion Ladbrokes acquisition have been identified.
According to the gambling operator’s report, its revenues for the first six months of the current fiscal year marked an 8% increase in comparison to the same period a year ago, reaching £1.7 billion. In addition, GVC Holdings’ underlying operating profits rose by 17% to £278 million. As revealed by the gambling company itself, its online gambling operations performed well over the period, and it registered market share gains in all regions where it currently operates.
Gambling firm GVC Holdings Plc said on Thursday it had identified an extra 30 million pounds in cost savings from its 4-billion-pound purchase of Ladbrokes Coral as it reported solid half year results and a surge in revenue in July and August.
— Cita Wertz (@CitaWertz) September 13, 2018
As mentioned above, GVC Holdings explained that cost savings amounting to £30 million were identified, to add up to the £130 million in cost savings which were reported earlier in 2018.
The gambling operator, just like other UK bookmakers, drew benefit from the 2018 World Cup tournament in July in spite of the fact that England’s national squad lost to Croatia at the semi-finals. Reportedly, the largest football tournament helped gambling companies boost their online sportsbook transactions and mark an increase in the number of new customers registered online.
GVC Holdings further revealed that its net gaming revenue increased by 14% thanks to the final two weeks of the World Cup, and enjoyed strong trading in the period from July 1st to September 2nd. Currently, the Isle of Man-based company owns gambling websites in 21 languages and accepts bets in 19 currencies.
GVC Holdings Aimed at Market Presence Consolidation
Earlier this year, GVC Holdings joined a number of major European gambling companies which have signed partnership agreements to bolster their positions in the global gambling markets. Not only did the group manage to finalise its merger with Ladbrokes Coral, making one of the largest deals in the UK gambling sector, but it has also reached out for a collaboration agreement with US partners to take advantage of the US Supreme Court’s decision to legalise sports betting in the country.
“The acquisition of Ladbrokes Coral completed on March 28th and the integration of that business is progressing well.” – said Kenny Alexander, CEO of GVC Holdings
A few months ago the company unveiled an agreement to roll out an online sports betting platform in the US in partnership with the local casino and hotel operator MGM Resorts International. Still, it has left these plans aside for the time being.
It was not all good for GVC Holdings over the first six months of the fiscal 2018. The company registered a 3% decline in its like-for-like net gaming revenues in its retail operations in the UK but it said the situation would have been even worse if it was not for the World Cup tournament. Earlier this year, ill weather conditions resulted in a number of horse racing fixtures being cancelled, which hit GVC retail operations’ performance.
The company’s gaming machine-generated revenue also fell by 3% compared to the result registered over the first six months a year ago. According to the gambling operator, the result was highly influenced by the negative coverage of controversial fixed-odds betting terminals (FOBTs) which has attracted much attention to the sector, and the UK Government’s review on the machines that followed.