GVC shares jump after betting on a 49 per cent dividend increase

Courtney Goldsmith
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GVC operates Sportingbet, Partypoker and other e-games (Source: Getty)

Share prices in GVC were up more than five per cent in afternoon trading after the leading sports betting and gaming business announced a dividend increase of 49 per cent today.

The e-games operator, which recently acquired rival Bwin.Party for £1bn, said adjusted earnings before interest, taxation, depreciation and amortisation could reach up to €205.5m (£171.6m) for the year to 31 December.

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Net gaming revenue in the fourth quarter to 12 December was up 12 per cent against the same period in the previous year – and December 2015 had been the group's strongest trading month yet.

The strong growth spurred the company to announce a 49 per cent increase in the proposed special dividend, which was previously announced on 3 November at 10c (around 8.4p), to 14.9c per share (fixed at 12.5p in sterling).

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Kenneth Alexander, chief executive of GVC, said:

Momentum across the group has continued to build throughout the year and is a reflection of the hard work of our employees, quality of our technology and strength of our brands. The integration of Bwin.Party is proceeding positively and ahead of our original expectations. We continue to look forward to 2017 with confidence and expect to achieve further significant progress.

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