VC Holdings on Thursday reported interim results for the first half of the year showing a flat profit, and the group decided not to pay a dividend for the period due to continued uncertainty about the effects of the COVID-19 pandemic.
The owner of Ladbrokes, Coral, Bwin and Sportingbet reported net revenue of £1.6 billion (USD 2 billion) for the six months to June 30, 2020, which was down 11% year-on-year, as online revenue rose 21% at constant currency rates, but bookmaking turnover was roughly halved because of the coronavirus lockdown. The group made net profit of 2.1 million pounds (USD 2.7 million) for the period, in line with £2.1 million a year earlier. As for underlying earnings before interest, taxes, depreciation and amortization (EBITDA), it declined 5% to £348.6 million.
With the return of most of the major sporting calendar and the reopening of its retail estate, combined with the strong performance of the online business, the company said it is “well placed” for the rest of the year and full-year EBITDA is now expected to be in the range of £720 million to £740 million.
GVC's new CEO Shay Segev, who stepped up after Kenneth Alexander stepped down a month ago after 13 years, said he felt it was an “encouraging performance” given the unprecedented trading environment.
“These results show that we have a strong foundation. As a technologist, I have huge admiration for what Kenny and the rest of my colleagues have achieved but I am also determined to pursue a programme of continuous improvement as we focus on our four technology-enabled priorities. These are leading the US market, organic growth, expanding into new markets, and being the most responsible operator in our industry,” Segev said in a statement.
The CEO added that the US is the company’s biggest growth opportunity, where the BetMGM joint venture is operating in seven of the 21 states where gambling is allowed, with a further four expected to go live by the year-end.