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Online gambling group announces a strong trading performance.
Online gambling group GVC Holdings plc enjoyed a 5 percent share price boost from a trading update announcement Thursday that included a dividend increase of 49 percent.
The update reported adjusted EBITDA could reach up to Euro 205.5 million for the year to 31 December, and revealed that net gaming revenue in Q4-2016 is up 12 percent against the same period in the previous year – the group's strongest prior trading month. Both metrics are at the upper end of market expectations.
"The positive momentum across the business, combined with strong cash generation gives the Board the confidence to announce a 49 percent increase in the proposed special dividend, previously announced on 3 November 2016, to Euro 14.9c per share (settled in sterling and fixed at 12.5p per share)," the update advised, flagging the following:
* Group daily NGR up 12 percent (+14 percent constant currency) against the corresponding period in 2015;
* Sports daily NGR up 19 percent y-o-y;
* Gaming/other daily NGR up 8 percent (+11 percent constant currency).
CEO Kenneth Alexander, said:
"Momentum across the group has continued to build throughout the year and is a reflection of the hard work of our employees, quality of our technology and strength of our brands. The integration of Bwin.Party is proceeding positively and ahead of our original expectations. We continue to look forward to 2017 with confidence and expect to achieve further significant progress.
"The growing momentum in Q4 is pleasing given the tough comparatives, particularly December, which in 2015 was the Group's strongest trading month."
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