TIDMGVC
RNS Number : 8085V
GVC Holdings PLC
02 February 2017
2 February 2017
GVC Holdings PLC
("GVC" or the "Company" or the "Group")
Refinancing and trading update
GVC Holdings PLC (LSE:GVC), the multinational sports betting and
gaming group, is pleased to provide a trading and refinancing
update ahead of the publication of its full year results on
Thursday 23 March 2017.
Refinancing
The Group has now repaid in full the outstanding loan of EUR386m
provided by Cerberus Business Finance LLC (the "Cerberus loan"),
through a combination of existing cash resources and the drawdown
of the EUR250m loan from Nomura International plc. As previously
stated, under the new facility the Group's interest payments will
be materially lower (cEUR40m) in 2017, than they would have been
had the Cerberus loan remained in place.
Q4 Trading (pro forma)
NGR per day increased by 7% (+9% in constant currency) in Q4
2016 over the same period in 2015. This is a particularly pleasing
performance given the adverse sports results in the last few weeks
of the year and the strong comparative period in 2015. Indeed, Q4
produced the highest daily NGR run rate of 2016. The international
diversity of our business combined with a proven portfolio of both
sports and gaming brands helped cushion us against particularly
punter friendly sports results in the UK and adverse currency
movements in some of our markets.
Per day Q4-16 Q4-15 Change Constant Q1-16 Q2-16 Q3-16
in EUR000's actual currency
Sports wagers 12,779 12,350 3% 5% 13,045 12,556 11,394
Sports margin 9.6% 8.6% 8.4% 9.9% 10.5%
Sports NGR 904 860 5% 6% 856 965 962
Gaming/Other
NGR 1,610 1,479 9% 11% 1,514 1,520 1,445
Total NGR
per day 2,514 2,339 +7% +9% 2,370 2,485 2,407
Total NGR
EURm 231.3 215.2 +7% +9% 215.6 226.2 221.5
2016 Pro forma full year update
In light of the strong final quarter, the Board now anticipates
reporting pro-forma(1) Group NGR for the year-ended 31 December
2016 of cEUR894m, an increase of 9% on the previous year (EUR822m)
and slightly ahead of previous guidance(2) . On a constant currency
basis pro forma NGR growth was 12%. The Board expects pro forma
Clean EBITDA to be towards the upper end of market expectations(3)
and net debt of approximately EUR140m (including gross cash of
EUR373m as at 31 December 2016). Meanwhile, the special dividend of
12.5p per share will be paid to shareholders on 14(th)
February.
Capital Markets Day
It is the Group's intention to hold a capital markets day for
analysts and institutional investors on Thursday 25 May. The aim of
the event is to provide a more detailed overview of the operational
structure of the Group, with a focus on our proprietary technology,
products and brands. Further details of the event will be made
available in due course.
Kenneth Alexander, CEO, said:
"2016 was a landmark year for GVC in which the Group undertook
its largest and most ambitious acquisition to date, that of
bwin.party. Through the tremendous hard work of our people, we
achieved and exceeded many of our goals and once again we were able
to create significant shareholder value. In addition to returning
bwin.party to growth, we remain on target to secure EUR125m of
synergies by the end of the current year.
The positive trading momentum experienced in 2016 has continued
with a particularly strong start to 2017. Pro forma daily NGR for
the month of January was up 21% (23% in constant currency) against
the same period in 2016.
Our strategy of pursuing international diversification and
scale, through the leverage of our proprietary technology and
talented people, is more relevant today than ever. We are excited
about the organic opportunities for the Group in 2017 and beyond,
but also remain alive to further industry consolidation."
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 -
(1) Pro forma shows combined Group as if GVC acquired bwin.party
on 1 January 2015
(2) Trading update 15 December 2016 pro forma NGR range
EUR852-885m
(3) Pro forma Clean EBITDA EUR202.7-205.5m
For further information:
GVC Holdings PLC
Tel: +44 (0)
Kenneth Alexander, Chief Executive 1624 652 559
Richard Cooper, Group Finance
Director
Nick Batram, Head of Investor Tel: +44 (0)
Relations & Corporate Strategy 20 7337 0110
Media enquiries:
Bell Pottinger
David Rydell, Anna Legge, Laura Tel: +44 (0)
Jaques 20 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 is
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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