GVC reports soaring daily turnover
Daily turnover up 168% year-on-year, driven predominantly by rapid B2B growth.
GVC Holdings has announced a huge increase in its daily turnover across B2B and B2C operations for the period from 1 January to 20 May 2012, with the company’s newly-formed B2B arm performing especially strongly.
Total daily turnover increased 168% year-on-year, up from 104,200m to 279,400m, driven predominantly by the company’s B2B arm, established after the GVC-backed East Pioneer Corporation acquired Sportingbet’s Turkish-facing site Superbahis for a minimum consideration of £125m in October last year. Over the same period in 2011 the operator’s B2B arm reported a daily turnover of just 5,800, compared to 174,100 this year.
Growth in B2C daily turnover, which grew to 105,200, up 7% from 98,400 in the equivalent period in 2011, was aided by the sale of the group’s loss-making Betaland brand in April this year.
B2C growth was driven predominantly by GVC’s Spanish and Latin American-facing brand Betboo. Daily amounts wagered on sports soared 152% year-on-year, leaping from 45,800 to 115,400, while daily net gaming revenues for the vertical jumped from 4,200 to 5,700 “ a 35% increase from 2011. This came despite a 43% year-on-year drop in sports margin, attributed to unexpected betting outcomes.
GVC’s German-language brand CasinoClub was the only area of the business not to report rapid growth, with daily turnover relatively flat, rising from 78,000 to 78,500 for the period. The operator is preparing to enter the legalised Schleswig-Holstein market, having announced its intention to apply for a licence last April.
Commenting on the results, GVC CEO Kenny Alexander (pictured) highlighted the drop in sports margin, but admitted he was happy with the company’s performance: “We are extremely pleased with the performance in both divisions. B2C sports margins, have been adversely affected by favourable punter outcomes this year, which has suppressed an otherwise excellent start to the year. GVC’s agreement with EPC [East Pioneer Corporation] is progressing well with daily turnover now exceeding 174k per day.
“Whilst economic conditions in Europe continue to be volatile, we remain cautiously optimistic for the year,” he said.