GVC Holdings - Strong start to H2 confirms underlying performance ahead of expectations

Davy Research
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Despite a very busy period for the group, GVC Holdings’ (GVC) year-to-date performance is strong. On a pro-forma (PF) basis, underlying EBITDA rose 11% year-on-year (yoy) in H1. H2 has also started strongly and ahead of expectations (group PF net gaming revenue (NGR) +14%; Online NGR +30%). Surplus profits are likely to be reinvested to fuel further efforts to take share, meaning that full year guidance is unchanged. We are also likely to leave our current FY forecasts unchanged, albeit our top line expectations will clearly step higher. We currently have a ‘Neutral’ rating on the stock.