GVC Holdings reports jump in annual revenue ahead of Bwin.party merger

Gaming company GVC Holdings on Monday reported a 10.2% increase in 2015 net gaming revenue to €247.7m (£180.03m) ahead of its merger with Bwin.party.

In a trading update for the year to 31 December, the group revealed annual results would be supported by a strong last quarter. Net gaming revenue rose 10% in the fourth quarter to €65.5m.

“This is an encouraging finish to the year for GVC, despite a significant hit from forex moves, and it follows the recent positive trading update from bwin.party, pointing to strong momentum for the group going into the acquisition, which is set to complete on 1 February,” said Canaccord Genuity.

"We nudge up our forecast to reflect the stronger revenue run rate, raising our 2015 earnings before interest, tax, depreciation and amortisation forecast from €50.8m to €52.0m, driving a 3% earnings per share (EPS) upgrade from 68.7c to 70.6c. For 2016, we nudge up EPS by 1%."

AIM-listed GVC clinched a deal to buy bwin.party for £1.1bn in September, with the completion expected on 1 February.

“With the shareholders of both GVC and bwin.party digital entertainment plc ("bwin.party") having voted overwhelmingly for the acquisition of bwin.party on 15 December 2015 and with completion expected on 1 February 2016, and the enlarged GVC Group expected to be admitted to the Main Market on 2 February 2016, we are enthusiastic to commence the integration of the businesses and to continue to drive shareholder value for investors in the enlarged group,” GVC chief executive Kenneth Alexander said in a statement.