GVC upgrades full year profit guidance, shares up

GVC upgrades full year profit guidance, shares up

GVC (LON:GVC) upgraded its profit guidance range on Wednesday.

Shares in the sports betting and gaming group were up during trading on Wednesday morning.

The owner of the Ladbrokes brand increased its core profits forecast, predicting that they will now lie in the range of £670 million – £680 million for the full year.

Online gaming revenue increased 12% in the third quarter, GVC added.

“I am delighted that the Group’s financial performance has allowed us to upgrade our full year EBITDA expectations again,” CEO Kenneth Alexander said in a company statement.

Indeed, the profit guidance upgrade is GVC’s second this year.

In addition to the Ladbrokes brand, which is one of the most recognised in the UK, GVC also owns Coral and bwin.

The Coral brand has become synonymous with UK betting, whilst bwin is one of the leading online betting brands in Europe.

“Online momentum remains strong across all major territories, with NGR up 12% in the quarter despite the prior period containing part of the World Cup,” the CEO added.

“This performance continues to be driven by our industry-leading technology, products, brands, marketing capability, and people.”

“The launch in September of the BetMGM app in New Jersey, powered by the GVC technology platform, is a key milestone, and our US sports-betting joint venture with MGM Resorts remains very well-placed to capitalise on the US sports-betting opportunity. The integration of the Ladbrokes Coral businesses is progressing well with the migration of the Ladbrokes, Coral and Gala online brands due to commence in Q4 and complete by the end of H1 2020.”

GVC added that it is in the process of finding a successor to its current Chairman Lee Feldman. It said that it expects to make an announcement before the end of the year.

Shares in GVC Holdings plc (LON:GVC) were trading at +2.95% as of 11:04 BST Wednesday.