GVC 2016 third quarter earnings

Special 10 Euro cents a share dividend declared.
Online gambling group GVC Holdings plc has posted  positive third quarter earnings, along with the announcement that it intends to pay shareholders a special dividend of 10 Euro cents a share for financial year 2016 in February next year.
GVC, which bought rival online gambling group Bwin.Party for GBP 1.1 billion after a bidding war with 888 Holdings (see previous InfoPowa reports) has now honoured its September pledge that it would resume dividend payments.
In a company statement Thursday, GVC advised that it plans to adopt a dividend policy of distributing 50 percent of annualised free cash flow, commencing financial year ending 31 December 2017.
"It is expected that payments will be biannual with an approximate split of 40 percent : 60 percent between the interim and final payment," the statement explained. "Furthermore, the Board will  consider returning any future excess cash to shareholders in the form of special dividends and/or share buybacks. Excess cash will be determined by the capital requirements of the business, together with the trading outlook at the appropriate time."
GVC also issued a trading update on its third quarter performance, advising:
* Pro forma group daily NGR for Q3-2016 increased 12 percent on the previous year at Euro 962,000 (+15 percent in constant currency);
* Sports gross win margin was up at 10.5 percent in Q3 (9.3 percent Q3-2015), with daily amounts wagered 3 percent higher year-on-year at Euro 11,394,000;
* Games/other daily NGR was up 12 percent at Euro 1,445,000 over the same period in 2015 (+15% constant currency).
Management reported that trading in Q4 has begun positively with pro forma group daily NGR up 8 percent (+10 percent constant currency) for the period up to 31 October 2016. This performance is particularly pleasing given the tough comparative, with pro forma Q4 being the strongest period in 2015.
GVC intends to announce full year results on Thursday 23 March 2017.
Kenneth Alexander, CEO, said:
"As we did following the Sportingbet acquisition, through the rapid integration of bwin.party and a solid trading performance, GVC expects to recommence the payment of dividends ahead of schedule.
"Our shareholders have been highly supportive and it is pleasing to be able to reward them with a dividend sooner than we had originally anticipated. Trading has continued to be positive and with our proprietary technology, strong brands and talented people we are confident that GVC is well placed to deliver in a market that presents many opportunities and challenges."