Full Year Profits Plunge of 40% for GVC Holdings, Preliminary Results for 31 December 2015, Year End
GVC released its 2015 full year results, and profits for pre-tax revenues have dropped by 40%. This isn’t the figures the gaming group wanted to see due to its rising revenues for wagers it took in after it acquired Bwin.party. GVC reported that for the entire 12 months of gaming they earned 24.7million Euros for profits, way down from the 2014 gaming year when they earned more than 40 million.
From the reported figures it shows that the purchase of Bwin.party gave the company a loss of 42.3 million. 24.5 million of that was reportedly filed under “exceptional items”. GVC still remains positive for its overall revenues it generated last year. With a 10% increase for its net gaming revenues this is the 5th consecutive growth for revenues.
Kenny Alexander, Chief Executive commented that,
“The completion of the Bwin.party acqusition in early 2016 affords us an opportunity to take the group to the next level. GVC has never been in been in a stronger position going forward. The enlarged Group is already enjoying encouraging trading.”
GVC took over Bwin.party of February 1st; the company improved its marketing and product tools this year which strengthens its operation levels a great deal.
- Net Gaming Revenue (NGR) up 10% on 2014 to €248 million
- Clean EBITDA up 10% to a record €54.1 million
- Profit Before Tax* up 21% to €50.0 million
- Fully diluted EPS (pre-exceptional) up 21% to 80.2 €cents
- Dividends in 2015 increased to 56.0 €cents
- Fifth consecutive year of NGR, Clean EBITDA and dividend growth
- Shareholders approved acquisition of bwin.party on 15 December 2015 which completed on 1 February 2016
- Materially strengthened management team at senior operational level and board
- Product and marketing tools significantly improved during the year