GVC H1 Share Prices Climbs
GVC Holdings is an internet sports betting and wagering company released its first positive press release since its inception on London’s Alternative Investment Market (AIM) earlier this year. GVC Holdings is in partnership with Latin American business Betboo announced that they have made good on their ROI and yielded record revenues for the month of September so far.
GVC Holdings joined the AIM in May, having been registered domiciliation from Luxembourg to the Isle of Man last year. GVC is the owner of Betboo, an internet bingo, casino, poker and sports betting site in Latin America.
Betaland an Italian based internet sportsbook and German Casino Club has seen a dramatic rise in their net gaming revenues which rose from by 8% to €28.1m for the six months ended June 30 in comparison to the same period in 2009. Unfortunately its EBITDA has dropped significantly from €6.6m in 2010 as opposed to €9m the previous year with Keith Alexander. The CEO of the Company said that a dramatic increase in its overall brand investment is ascribed to this decline.
“Product investment had to increase as well as new brands, especially in our casino business in Germany, the idea is to safeguard our market share and revenue stream,” Alexander told eGaming Review this morning.
A new sportsbook is set to be launched soon mentioned Alexander and it will be presented in four different languages: Portuguese, Turkish, Greek and Russian last four months of this year.
“We expect some good results before this year is out. Our Company’s revenues are 17% higher this quarter in comparison to the same quarter the previous year. The reason for this is the strong trading in September in Casino Club which was very low the previous year,” he stated.
“Betaland’s revenue has increased by 24% and Betboo’s by 42% for the month of September, overall revenues are 25% higher this September compared to last year the same period. Growth indicated by Betboo is positive as a whole and it’s meeting our current market demand generating a profits of €2.2m and with Q3 daily revenues of €19,000 a day compared to €12,000 compared to the same quarter last year–so far the current revenues for this quarter has exceeded our wildest expectations.
“NGR has been increased by 8%, irrespective of ever changing economic conditions. The egaming industry in South American has indicated a positive growth to date. We strive to pay out a dividend to our shareholders of 75% of the net cash yielded by means of investing in new high-growth businesses and at the same time we’re safeguarding our high-margin, cash cow CasinoClub business continues to grow and remains steady regardless of the uncertain economical climate.”
Alexander goes even further and stated that the business is determined to pay a dividend of €0.10 per share to its current shareholders on October 28 this year.
“This period is imperative for us; since many people are keeping tabs on our current share prices and are of the opinion that we might steer away from our dividend policy.” This not the case since we are committed as ever before to ensure that our shareholders receive the highest possible return on the investment.
The GVC Holdings CEO also indicated that their court case had been scheduled in the Maltese court on October 14 in its legal actions against Boss Media. However, a set date has not been decided for the Swedish arbitration.
Gaming Review also indicated that GVC is embroiled in a number of disputes concerning alleged infringement of the group’s intellectual property. There is a slight chance that Boss Media could rescind their contract by means of supplying poker and downloadable casino games to Gaming VC’s Italian-facing Betaland.com site.[addtoany]