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Just before the beginning of its Annual General Meeting on May 24, GVC issued a short trading update showing double digit growth in Q2 of 2016.
Daily revenues are 11 percent higher than Q2 2015, and 15 percent higher on a constant currency basis.
CEO Kenneth Alexander said:
“I am delighted to be able to report a continuation of the strong trading performance previously announced at the time of our final results on April 25th. It is pleasing to see that our strategy to reinvigorate growth at bwin.party is delivering positive early results, which is in part a reflection of the high quality people within the enlarged Group.”
The Q1 2016 and annual 2015 report was able to announce the first quarterly growth in online poker revenues at partypoker for over five years. Average daily gaming revenues were up by 18 percent for GVC brands and 11 percent for bwin.party brands.
Alexander described this week’s deal with BetFred as such:
“This, together with the transformational B2B deal with Betfred, that we announced yesterday, gives me confidence that we can deliver significant value to our shareholders.”
“Transformational” was the word GVC also used to describe the BetFred deal in its original regulatory news statement.
The repetition reinforces OPR’s analysis that the deal is much more than a simple, single company commercial arrangement and in fact reflects a strategic change, with GVC adopting a B2B network model to leverage its technology.
The deal announcement came close to spelling this out:
“GVC continues to see opportunities to drive revenues from its proprietary technology and will continue to utilise its market leading offering.”
Kenny Alexander used the trading update to remind investors that the company has applied to move to the Premium Segment of the Official List.
The London Stock Exchange (LSE) allows quoted companies to choose either a Standard listing or a Premium listing.
The LSE explains the difference as :
A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance – and as a consequence may enjoy a lower cost of capital through greater transparency and through building investor confidence.
GVC shares closed the day up 1.23 percent at £5.77 ($8.44). The share price has now increased by 24.5 percent since the start of 2016.