GVC Holdings has revealed its financial might ahead of aas a result of recent yearly sales figures surpassing $1 billion ($1.2 billion).
With an offer of up to $5.33 billion on the table, GVC has given Ladbrokes Coral and its shareholders something to consider after publishing its 2017 earnings report. After a successful year of trading, the online gaming and gaming company reported 2017 sales figures 13 percent higher than the previous year.
GVC is the Isle of Man-based parent company of Partypoker. They also own and operates online sports publications across Europe, including Bwin and Sportingbet.
Gaming Revenue Growth
A strong fourth quarter helped bolster GVC’s revenue. In Q4 2017, GVC saw 24 percent increase across its gambling platforms, and 22 percent increase for net gaming revenue overall.
“All verticals add a good performance,” a Jan. 11 press release accompanying the financial report stated, “with Partypoker preserving its remarkable growth.”
GVC’s revenue report will serve as something of an advert for the power of its brand. At present, shareholders at GVC are considering a proposal to take over Ladbrokes Coral.
Should the shareholders vote in favor of the acquisition, GVC would officially offer Ladbrokes Coral a deal with two possible payments based on the outcome of the UK government’s FOBT review.
In case the government decides to reduce the maximum wager on gambling machines to #2 ($2.70), GVC would pay $4.2 billion on account of Ladbrokes Coral’s shop revenue taking a hit. In case the government decides to reduce the stakes from #100 to #50 ($136/$68), GVC would pay a higher price of $5.33 billion.
Merger in the Balance
For GVC CEO Kenneth Alexander, the deal would be an opportunity for all involved to be a significant player on the global online gaming stage.
“We have demonstrated our ability to integrate significant acquisitions, realize material synergies and at precisely the exact same time provide top line growth,” Alexander noted in annual report. “The recommended transaction with Ladbrokes Coral Group presents an exciting opportunity for both sets of shareholders, creating a international gaming group.”
Up to now, GVC’s board has placed itself in a strong position should its shareholders agree to the proposed takeover. With thedemonstrating that such deals can be rewarding, the odds of another takeover being approved seem positive.
If and when this occurs, it will be for Ladbrokes Coral to hash out the details before ultimately signing on the dotted line to cement another significant merger in the business.