Gaming services provider GVC Holdings' share price was lifted today after the company celebrated a revenue boost from its acquisition of Bwin and "favourable" results from the Euro 2016 championships.
Net gaming revenue (NGR) - income on punters' wagers minus payouts - climbed a whopping 223 per cent to €338m (£283m) in the six months to 30 June following the consolidation of Bwin on 1 February, the company said in a trading update today.
NGR per day rose by seven per cent in the first half of the year, while in the second quarter, daily NGR was up 11 per cent on the same period in 2015.
In the first half, GVC brands, which include Sportingbet, PartyPoker and Foxy Bingo, grew 15 per cent year-on-year. The amount staked on sports wagers grew four per cent in that time, to €12.8m.
GVC's share price was up almost five per cent in early afternoon on the good news, trading at 643p.
Why it's interesting
GVC's takeover of online betting site Bwin.party in February has significantly boosted its revenues, while the group's 10-year online deal with Betfred, signed in May, was another first-half highlight.
GVC fought a bitter fight with rivals 888 to get their hands on Bwin.Party last year. The deal was agreed by shareholders at the end of 2015 and came into effect in February.
Betfred will now migrate all its sportsbook and gaming offerings onto the GVC platform on an exclusive basis as a result.
Read more: GVC and hedge fund unite in battle for Bwin
GVC has also announced it will become premium listed from 1 August.
The gambling giant also shrugged off Brexit fears today. "From an operational perspective, in the short to medium-term the UK referendum result to leave the EU will have little or no material impact on the group," GVC said in a statement.
"GVC is a diverse business, operating multiple brands and product verticals, with more than 90 per cent of its customer base outside the UK."
What GVC said
Chief executive Kenneth Alexander said:
I am pleased to report that in the first half of 2016 GVC has continued to deliver positive trading momentum. The second quarter was particularly strong, helped by increasing volumes and favourable sports results during Euro 2016.
The restructuring of the enlarged group is progressing well with synergy targets being achieved, accompanied by strong underlying growth.