GVC’s 2018 a story of online strength masking retail struggles

UK-listed gambling operator GVC Holdings closed out 2018 on a high note as online growth helped overcome UK retail declines.

On Thursday, GVC issued a trading update covering its full-year 2018 performance, during which the company’s pro forma net gaming revenue (NGR) rose by 9% from 2017’s result, while group earnings are expected to come in between £750m-£755m, “ahead of current market consensus.”

The full-year numbers were goosed by a “very strong” online performance, which saw NGR spike 19%, in part due to a 13% rise in online sports betting turnover. That online spike helped offset a poor UK retail performance, which was down 3% from 2017.

The UK retail figures will likely stay broadly negative for some time to come, as the Q4 numbers showed over the counter (OTC) wagers falling 7% and wagering revenue down 10%. Fixed-odds betting terminal revenue was up 3%, but that vertical’s growth will come to a screeching halt starting April 1.