LONDON (Alliance News) - GVC Holdings PLC on Friday reported a drop in pretax profit in the first half if 2015, despite growth in revenue, as it booked costs associated with its proposed takeover of Bwin.Party Digital Entertainment PLC.
The gaming company reported a decline in pretax profit in the six months ended June 30 to EUR17.1 million from EUR18.0 million, even though revenue grew to EUR120.9 million from EUR105.1 million. It said that it booked EUR3.8 million in costs in relation to its attempt to buy Bwin.Party.
GVC is currently in talks with Bwin.Party over a potential reverse takeover of much-larger Bwin.Party by GVC. Bwin.Party already agreed a takeover offer from rival 888 Holdings PLC back in July, but is now considering further proposals from GVC. In a statement released on Thursday, Bwin.Party asked GVC to clarify the best terms on which it is prepared to make an offer for the company.
On Friday, GVC did not comment on Bwin.Party's request, but said that "if successful, this reverse takeover would be a further transformational step for the group and its shareholders".
Bwin.Party and 888 also reported half-year results Friday. In its statement, Bwin.Party said: "Whilst discussions with GVC are continuing, there has been no change to the board's recommendation for 888's offer."
GVC said that net gaming revenue rose 15% to EUR121 million from EUR105 million in the half year, but that its sports gross margin fell to 8.8% from 9.9%.
The company will pay an interim dividend of 42 cents, an increase of 5% on the prior year.
"With our track record of delivering value through organic growth and acquisitions we are determined that GVC will play an important role in the continuing consolidation of the online gaming sector," Chief Executive Kenneth Alexander said in a statement.
"We are highly confident for the rest of the year," he said, adding that current trading remains strong.
Shares in GVC were trading up 1.1% at 439.65 pence at the open on Friday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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