GVC Holdings on a five year winning streak

REVENUE at GVC Holdings – a leading provider of B2B and B2C services to the online gaming and sports betting markets – rose by 17% to €64.3m in the year to the end of December. GVC says revenues have now increased for five years in a row and the final dividend of 11c is 10% up on last time and ahead of market expectations.

But earnings before interest, taxation, depreciation, amortisation, share option charges and exceptional items fell to €10.0m from €12.2m following planned investments in marketing and TV campaigns in the group’s B2C brands.

Chief executive Kenneth Alexander said: “2011 was a significant year for the group as we moved into providing B2B services for the first time with our support agreement with EPC.

£This marks a change of direction for the group away from pursuing growth in pure B2C markets, and this has continued with the disposal of Betaland earlier this month.

“Revenues have seen a fifth successive year of increase, against a backdrop of tight consumer spending across the group’s core markets and the decline of poker revenues across the industry.

“Trading in 2012 has started encouragingly, despite some unusually high casino winners across both B2C and B2B along with a softness in the B2C sports margin percentage through punter-friendly results.

“The Latin American business continues to grow with sports wagers 165% higher than the same period last year.”

He added: “Today we are pleased to announce a final dividend of 11 cents per share, which is 10% higher than the final dividend for 2010 and ahead of market expectations.

“The board recognises the importance of a more regular income stream to our shareholders and to reflect this, the group announces today that it is going to move towards paying dividends quarterly beginning in February 2013.

“The board believes that the group’s dividend policy reflects our confidence for 2012 and we remain cautiously optimistic that the group is well placed for both medium and longer-term growth.”