GVC Announces Dividends Increase from Bwin Acquisition

Sat, Apr 1, 2017

GVC will raise its annual dividend saying its 1.1-billion-pound acquisition of Bwin is paying off despite significant costs from the transaction. The company reported a loss of €138.6 million, mostly due to the acquisition, but said overall sports betting figures are up thanks to the move.

GVC is still paying for its 1.1-billion-pound acquisition of Bwin, but increases in sports betting revenue since the acquisition will allow the company to increase its annual dividend.

GVC reported a pre-tax loss of €138.6m in 2016 due to costs related to its purchase of bwin. But the company said overall trading has increased due to gains in sports betting.

“We always expected we could return bwin to growth,” said Kenneth Alexander, GVC chief executive in a press statement. “But the growth potential for the group has been greater than we expected. I think there’s more to come.”

For 2016, GVC said that net gaming revenue rose 12 percent on a constant currency basis to €894.6m. Earnings before interest, tax, depreciation and amortization rose 26 per cent to €205.7m.

According to a report on yogonet.com, in December, the forecast net gaming revenues of between €852m-€885m and EBIDTA of €202m-€205.5m. After beating those estimates, GVC announced a second special dividend of 15.1 cents, giving a total 2016 dividend of 30 cents.

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