(Alliance News) - GVC Holdings PLC on Thursday raised it earnings guidance for 2020 as it hailed a strong performance in the third quarter, driven by its online business.
The FTSE 100 sports-betting and gaming group said in its third quarter from July 1 to September 30, group net gaming revenue rose 12% year-on-year - or 14% in constant currency - aided by online net gaming revenue which surged by 26%, or 28% in constant currency.
GVC added it has seen continued momentum in the US, with full-year net revenue for the territory now expected to be ahead of expectations at USD150 million to USD160 million. Its joint venture with MGM Resorts BetMGM is now live in eight states, with a further three expected to launch before the end of 2020.
Full-year group earnings before interest, tax, depreciation and amortisation is expected to be between GBP770 million to GBP790 million, around GBP50 million ahead of previous guidance.
"While the risk of further restrictions as a result of Covid-19 mean that we remain cautious on the short-term outlook, in the longer term we are confident of being able to continue delivering sustainable growth for all our stakeholders," said Chief Executive Shay Segev.
Separately, the company said it has agreed to acquire online gambling operator Bet.pt in Portugal. The transaction is in line with GVC's strategy of expanding into new markets that are either regulated or regulating.
Shares in GVC Holdings were trading 4.6% higher at 1,100.0 pence each on Thursday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
