World Cup trade exceeds expectations for GVC Holdings

This summer's World Cup in Russia has driven accelerated growth at GVC Holdings, the parent company of Ladbrokes Coral, according to their latest trading update released on Wednesday.

The tournament was a "good one for the group", GVC said, "helped by a better than expected gross win margin but also importantly volumes and value of new customer deposits".

Group net gaming revenue (NGR) increased by eight per cent in the first half of the year, with online NGR rising by 18 per cent.

Online NGR growth in the second quarter of 2018 was 22 per cent, while GVC added that a growth rate of 15 per cent for the period from the start of the year to the start of the World Cup reflected "strong underlying growth".

"The online brands have continued to benefit from a pipeline of new products and from high-profile marketing campaigns," GVC added.

GVC, who completed the acquisition of Ladbrokes Coral in March, said UK retail NGR fell by three per cent in the first half of the year, although the World Cup and better weather had helped that division grow by two per cent in the second quarter.

Chief executive Kenny Alexander said: "I am pleased to report this positive trading update while at the same time undertaking the integration of the Ladbrokes Coral business.

"The strong momentum across the online business has continued and means we are well placed to deliver against our full year expectations."

Analyst David Brohan at Goodbody described the news as "another strong update" from GVC.

He added: "The group continues to deliver impressive growth rates, particularly in online which is the main valuation driver."

However, by Wednesday night shares in GVC were down 17p at 1,090p.

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