The recent 2020 half-year GVC Holdings PLC earnings call contained some interesting highlights for the company. Of course, the GVC executives were on the call, as well as several investments, equity, and gaming industry analysts.
GVC Holdings is a leading, UK-based gambling and sports betting company. There are more than two dozen UK and European brands under the GVC umbrella. In the US, GVC Holdings provides the platform for BetMGM, Party Poker, Borgata, and Party Casino.
The Company Survived the Pandemic
GVC Holdings traded robustly throughout the challenge of the world-wide pandemic shutdowns. This is a testament to the skills of the governing board and all of the GVC staff. The company has an extremely talented team.
Despite the huge impact of canceled sports events and the closure of retail sportsbooks for months, GVC is in a good financial position, with a strong balance sheet and excellent liquidity. The company is in a very robust position moving forward, with a world-class online gambling platform, and an excellent collection of gaming brands. The company should continue to flourish and develop its technology and marketing.
GVC Holdings is Working with Her Majesty’s Revenue and Customs Concerning Turkey
The company announced on July 21st that the HMRC was investigating GVC’s former Turkey-facing online gambling business. Other than the company cooperating with a November 2019 production order related to a third-party payment provider in Turkey, the company had no prior knowledge of HMRC’s intent.
GVC Holdings sold the Turkey-facing gambling business in 2017. However, GVC is cooperating fully with the inquiry and is making every effort to comply with HMRC, and to better understand the nature of the inquiry and bring the matters to a swift conclusion.
GVC Holdings Strives to Be the World’s Most Responsible Gambling Company
Clearly on the company’s agenda is the goal to be the world’s most responsible gaming and sports betting company. That means good, responsible governance and instilling integrity into every part of the staff’s everyday thinking and in everything the company does. The company has a committee to oversee the review of regulations not only in the U.K. but also in other countries in which it operates. The company has every element of good governance in place.
GVC’s Online Presence Grew Significantly
The company’s online market share grew by double-digits, both in aggregate and across all of its territories. Online growth was up by about 20%. And despite the cancellation of major league sports, online sports betting was 2% above expectations. Furthermore, the company was able to reduce its operating expenses by 4%.
This was mostly due to a shifting product mix due to the COVID-19 lockdowns. Revenue growth was very good, including a 22% jump in the U.K. GVC’s U.K. growth came in large part from its bingo brands, but the sports betting brands also experienced double-digit growth. Australia also performed well, up 43%, since horseracing continued, and GVC sportsbooks dominate that market. Business in Germany, Georgia, and Italy also was very strong, and the company consolidated its leadership position in those markets.
GVC Holdings also plans to solidify its market leadership in the US, with organic growth, new market opportunities, and by creating a long-term business by leading the way with responsible gambling.
Product and Brand Diversification are Driving performance
GVC Holdings has many diverse products and brands. These serve as key drivers of the company’s performance, giving its customers a wide range of entertainment choices. GVC brands span the range of e-sports, bingo, and poker. Each division had robust new customer sign-ups, reactivated old players and spending per player from existing customers increased.
In fact, new customer sign-ups nearly doubled normal levels. But the biggest growth driver came from existing and reactivated customers. Retail casino and sportsbook closures contributed to bringing in both new and old customers online.
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