GVC Holdings


£3741.4m market cap

643p last close

GVC Holdings is a leading e-gaming operator in both the B2C and B2B markets. Following the acquisition of Ladbrokes Coral in 2018, it now has a market-leading position in UK retail betting. About 90% of revenues are derived from regulated and/or taxed markets.

Investment summary

By acquiring Ladbrokes Coral, GVC has become a FTSE 100 global gaming business, with pro forma FY18e revenues of £3.47bn. With strong brands, diversified revenues and a superior technology, GVC is well positioned to benefit from increased scale and we anticipate the deal to be accretive, due to the £130m+ cost synergies and £30m capex synergies. A recent $200m JV with MGM should propel expansion into the US, providing access to 15 states. We have updated our FY19 estimates to reflect the April 2019 implementation of the £2 FOBT stake limit and 21% remote gaming duty (up from 15%). The company will announce FY18 results on 5 March.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A 2998.8 523.4 225.9 N/A N/A N/A
2017A 3291.5 666.5 442.1 N/A N/A N/A
2018E 3472.7 734.9 498.5 70.45 9.1 N/A
2019E 2922.0 641.4 392.9 54.80 11.7 N/A
Last updated on 21/02/2019
Industry outlook

In the UK, the government has raised the remote gaming duty from 15% to 21%, with implementation in April 2019. At the same time, the £2 FOBT stake limit will commence. GVC believes that the £2 limit will lead to an ultimate £120m impact on EBITDA and we estimate that the new 21% RGD tax will reduce EBITDA by £30m annually.

Last updated on 21/02/2019
Share price graph
Balance sheet
Forecast net debt (£m) 1887.2
Forecast gearing ratio (%) 48
Price performance
Actual (9.6) (17.1) (30.3)
Relative* (12.0) (18.6) (29.0)
52-week high/low 1170.0p/615.0p
*% relative to local index
Key management
Kenny Alexander CEO
Jennifer Spencer IR
Nick Batram Head of Investor Relations

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