GVC Holdings PLC Special Dividend and Trading Update (1916O)
November 03 2016 - 3:00AM
UK Regulatory
TIDMGVC
RNS Number : 1916O
GVC Holdings PLC
03 November 2016
GVC Holdings PLC
("GVC", the "Group" or the "Company")
Special Dividend and Trading Update
GVC Holdings PLC (LSE:GVC), the multinational sports betting and
gaming group, is pleased to announce its intention to pay a special
10 euro cents per share dividend in February 2017 in respect of the
2016 financial year. In addition, the Company announces its
dividend policy together with a trading update for the third
quarter and the period up to 31 October 2016.
Special Dividend
As part of the terms of the EUR400m loan facility provided by
Cerberus Business Finance LLC ("Cerberus Loan") associated with the
acquisition of bwin.party digital entertainment plc ("bwin.party"),
the Group agreed to take a dividend payment holiday in 2016. On 2
August, the Company announced that it had entered into a commitment
with Nomura International to replace GVC's existing financing with
a new EUR250m Unsecured Loan at materially lower rates of interest.
This together with existing cash resources will enable the Group to
repay the outstanding balance of the Cerberus Loan, being
EUR386.5m, which the Group intends to do shortly before 2 February
2017 (the anniversary date of the full draw down of the Cerberus
Loan). As a result of this and continued positive trading, the
Board is pleased to announce the Group intends to pay a special
dividend of 10 euro cents per share in February 2017 in respect of
the 2016 financial year. An announcement containing further details
of the proposed special dividend, including record and payment
dates, will be made in due course.
Dividend Policy
Absent of any significant capital allocations or investments and
consistent with maintaining appropriate capital ratios, the Group
plans to adopt a dividend policy of distributing 50% of annualised
free cash flow, commencing financial year ending 31 December 2017.
It is expected that payments will be biannual with an approximate
split of 40%:60% between the interim and final payment.
Furthermore, the Board will also consider returning any future
excess cash to shareholders in the form of special dividends and/or
share buybacks. Excess cash will be determined by the capital
requirements of the business, together with the trading outlook at
the appropriate time.
Trading
-- Pro forma Group daily NGR for the quarter ended 30 September
2016 increased 12% on the previous year (+15% in constant
currency)
-- Sports gross win margin was 10.5% in Q3 (9.3% Q3 2015), with
daily amounts wagered 3% higher year-on-year (+5% in constant
currency)
-- Games/other daily NGR also showed good growth over the same
period in 2015, +12% (+15% constant currency)
Per day Q3-16 Q3-15 Change Constant Q2-16 Q1-16 Q4-15
in EUR000's actual currency
Sports wagers 11,394 11,078 3% 5% 12,556 13,045 12,350
Sports margin 10.5% 9.3% 9.9% 8.4% 8.6%
Sports NGR 962 860 12% 14% 965 856 860
Gaming/Other
NGR 1,445 1,295 12% 15% 1,520 1,514 1,479
----------------- ------- ------- -------- ---------- ------- ------- -------
Total NGR
per day 2,407 2,155 12% 15% 2,485 2,370 2,339
Total NGR
EURm 221.5 198.3 12% 15% 226.2 215.6 215.2
Trading in Q4 has begun positively with pro forma Group daily
NGR up 8% (+10% constant currency) for the period up to 31 October
2016. This performance is particularly pleasing given the tough
comparative, with pro forma Q4 being the strongest period in
2015.
The Group intends to announce full year results on Thursday 23
March 2017.
Kenneth Alexander, CEO, said:
"As we did following the Sportingbet acquisition, through the
rapid integration of bwin.party and a solid trading performance,
GVC expects to recommence the payment of dividends ahead of
schedule. Our shareholders have been highly supportive and it is
pleasing to be able to reward them with a dividend sooner than we
had originally anticipated. Trading has continued to be positive
and with our proprietary technology, strong brands and talented
people we are confident that GVC is well placed to deliver in a
market that presents many opportunities and challenges."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
- ends -
For further information:
GVC Holdings PLC
Tel: +44 (0) 1624
Kenneth Alexander, Chief Executive 652 559
Richard Cooper, Group Finance Director
Nick Batram, Head of Investor Relations Tel: +44 (0) 20 7337
& Corporate Strategy 0110
Cenkos Securities plc
Mark Connelly, Jeremy Osler, Camilla Hume Tel: +44 (0) 20
7397 8900
Investec Bank plc
Garry Levin, Chris Treneman, Carlton Tel: +44 (0) 20 7597
Nelson 4000
Media enquiries:
Bell Pottinger
David Rydell, James Newman, Anna Legge, Tel: +44 (0) 20
Laura Jaques 3772 2500
About GVC Holdings PLC
GVC Holdings PLC is a leading e-gaming operator in both B2C and
B2B markets. GVC has four business segments with a number of
brands; Sports labels (bwin, Sportingbet, gamebookers), Gaming
labels (partypoker, partycasino, Foxy Bingo, Gioco Digitale,
CasinoClub), B2B and non-core assets. GVC acquired bwin.party
digital entertainment plc on 1 February 2016. The Group,
headquartered in the Isle of Man, is a constituent of the FTSE 250
index and has licences in more than 15 countries.
For more information see the Group's website:
www.gvc-plc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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