As you say trust Kenny - both to make us richer and also especially to make himself considerably richer. Havent seen so many complaints on the bb recently about the board rewarding themselves excessively. I presume that is because their actions are also rewarding their shareholders well. OK by me.
Very strong & our profits will have increased accordingly.I am still not sure about the rationale of acquiring 3500+ retail units which is clearly a declining market,particular when the gaming machine cash cow is substantially curtailed-but I will trust in Kenny.Perhaps he is planning to hive off retail into some sort of MBO in which we will retain a stake.
Ladbrokes Coral is not just betting shops. They already have an online business and are also into Casinos, Bingo and Backgammon. Is this where GVC are going or are we going to see a number of sell offs of those bit of Ladbrokes that don't fit the GVC profile? I suspect the latter. In any case thinning out the Betting Shop empire need not cost a fortune. Natural wastage of employees in the industry is high and delipidations need not cost a fortune. Landlords always ask way over the costs as they see it as a way to maximise their profits. There are many good contractors who are capable of doing the work at a reasonable cost. Having worked in that trade I know we could often half the landlords asking price and still make a profit!
Broker Forecast - Peel Hunt issues a broker note on GVC Holdings Plc
Peel Hunt today reaffirms its buy investment rating on GVC Holdings Plc (LON:GVC) and raised its price target to 1200p (from 1000p). Story provided by StockMarketWire.com
I've held GVC since 2006 and always been bullish on the company (despite the occasional rants by Eagle 51). I've always thought Kenny Alexander and the Board are very shrewd and they've achieved tremendous growth and shareholder value. Back in 2014 and 2015 when dividends were paid quarterly the yields were sensational. However, in order to effect the acquisition of Sportingbet in 2016, dividends were suspended for a year and when they were reinstated it was on a twice yearly basis so shareholder income has all but halved (still very good though if you bought ten years ago) Two things concern me:
1) High Street bookies are yesterday's model with high running-costs and, on the occasions when I've gone in for a look, virtually empty of customers. (So I really don't see the logic in the deal but what do I know!!!)
2) I have concerns that the dividend will be suspended again in order to fund the deal and that shareholder value will be hit both in terms of no dividend income and also reduced share price.
Nevertheless, the market seemed to like it today and I still don't quite understand it but I took the opportunity to sell 21% of my holding at £9.83. May well be wrong again (as I was when I sold out of Persimmon at £19.24 - now £26.06!!)
Think I'll just wait and watch (and I mean to watch it like a hawk!!).
The old saying "buy the rumour, sell the news" seems appropriate until we see which way the wind blows.
Good point Pad but disposing of over 3500 retail shops as & when leases come up for renewal would be a lengthy & costly process involving dilapidations clauses & redundancies.Wonder whether a SPV could be set up to acquire them all & take them off the Balance Sheet.It will be interesting to see how the press respond tomorrow & over the weekend as this is big news & some would say,positively, that senior management at Ladbroke Coral have dealt brilliantly with extracting merger synergies & GVC will benefit most.Hopefully the IIs in LC will support the merger as Kenny is the main man in this industry .
I can see your concerns but I think rather than the business, he is buying the customer base.
Once onboard with the old fashioned punters going into betting shops he can 'convert' them into online users then close the high street stores down win-win.
Dave well put and exactly my sentiment too, leasehold estate expensive staff heavy this really takes the shine off of a very nimble online operator, LADS is not a great business anymore in my view BUT everything he touches to date turns to gold so we will see, i have sold a lot of shares at £8-9.50 so what i have left is still quite substantial but owes me nothing, i may though let a few more go at this price level....
Gvc,that tiny unknown company which first came to my attention via its acquisition of Sportingbet is looking to acquire LCL to truly propel it into the big league.If the deal proceeds it is expected to be earnings accretive in year 1 ,which will be great, although it now becomes a truly big company (assuming all goes well) .GVC s success has built entirely on its online offering embracing & exploiting the revolution so its seems almost bizarre ,to me, to acquire a company with hundreds of high street stores with all the costs of property maintenance& retail staff in what must be a declining market & I can only assume that Kenny will be planning a substantial reduction in the Estate.Interesting to see how the Market reacts but this acquisition may signal my exit.
Thanks for that.
Any idea on the Other composition.
Presumably the Turkey will go with the sale, so that is 10% down. Hope thye have a good idea where they are going to make it up, although they must have had separate concerns about Turkey going forwqard regardless.
Yes, GVC is very much on the up trend. I guess that this will more thna cover the earnings from the sale of the Turkish end of the business. I am happy that they are not in what must be a continuing volatile Turkish business situation right now. The 150m paid in monthly instalments will be a nice little addition to revenue for general business purposes eg marketing etc. Still much growth I believe in this one.
Another great RNS moving us further into Regulated Markets & further away from the uncertainties of unregulated markets.Additionally a brief trading update suggests that our growth is accelerating after recent strong performance.
"GVC Holdings PLC (LSE:GVC), the multinational sports betting and gaming group, is pleased to announce Q3 KPIs for the period to 30 September 2017.
Key highlights Q3 2017 vs Q3 2016:
Group daily NGR up 10% (+13% constant currency)
Underlying1 daily NGR up 18% (+21% constant currency)
Sports Brands daily NGR up 11% (+14% constant currency)
Games Brands daily NGR up 15% (+17% in constant currency)................."
We continue to perform very well which is likely to result in a dividend increase & a strengthening SP , notwithstanding any adverse affects of Regulatory changes.I am not sure whether I want us to merge with Ladbroke/Coral as I cannot see why we would need a retail presence on the High Street-although Kenny may have a cunning plan to hive that business off into a separate entity or immediately dispose of it.The future is clearly online !
You will have been offered 25p for each BWIN share held plus 0.231 shares in GVC though there was a mix and match deal available. I suggest you contact whoever you bought the BWIN shares through for clarification.
Would you help me please? I had bwin and cannot put my hand on the paperwork so I don't know whether I am in profit with GVC. I am not a big dealer, just a few here and there.
I notice, and I am pleased with the 10% rise over the six month period with a confident prediction for the full years earnings:
H1 2017 Group daily NGR up 10% (+12% constant currency) vs pro forma1 H1 2016
H1 2017 NGR 484.8m up 10% vs H1 2016 pro forma1 441.8m (+11% in constant currency)
Q2 2017 Group daily NGR up 8% (+10% in constant currency) vs Q2 2016
Q2 2017 underlying Group daily NGR up 15% vs Q2 2016 (excluding Euro 2016 revenues)
Kalixa disposal completed
Trading in line with management expectations
In the past there have been complaints that management pay themselves too much. I feel particularly critical of other companies where it seems that senior management s=are rewarded even for failure. If this company goes off the boil a any time, thne I will feel that way again. In the meantime they are helping my portfolio grow on the basis of success. Since I am in my 70s and since the Conservatives are at last facing up to the guaranteed - not likely - situation of ageing over the coming years, this all helps me to prepare for basically looking after myself in the last quarter of my life. This gives me a stronger feeling of independence, that much iundervalued feature of our lives. They have also taken on the false argument that you have bought your house so that you may pass it on to your successors on your death. No, you bought your house so that again you feel independent, and for most of us we have enjoyed a very large capital gain often with the help of tax advantages in the payment lof mortgages. We can downsize and probably have a significant capital nest egg. During our lives we have also had the opportunity to build up large tax free savings via various forms, the latest being ISAs. All of this of course assumes that our incomes are larger than our expenditure and we can afford to put aside current expenditure for future benefit. Most of us come into the world with nothing, and we certainly cant take it with us, so we have to support ourselves and ours - our responsibility, not the state's - and still leave something over via our tax contributrions for the state to support others who cannot truly help themselves. That is called a civilised society.
Anyway. enough of the ramblings of an older person and back to GVC. I look forward to their next acquisition, and trust that as with the last one they do their homework and have the skills to absorb and add value to any future acquisition. In this way, I look forward to seeing an SP of 900p in the not too distant future. After all, even with good odds, my distant future cannot be too distant!
Boosted by game-changing M&A activity over the past year, I reckon GVC Holdings (LSE:GVC) could be on course to deliver stunning earnings expansion.
The breakneck momentum GVC enjoyed in 2016 has carried into this year, the firm advising last month that group net gaming revenues (or NGRs) on a pro-forma basis were up 15% during January 1 to March 23, with rises of 18% and 6% enjoyed across its Sports and Games divisions respectively.
This is up from the 9% improvement in group NGRs the Foxy Bingo and partypoker owner posted during 2016.
On the move
While GVC faces the same regulatory uncertainty as the rest of the gambling sector, I believe the firm's broad geographic footprint should insulate it from the worst of these pressures and keep providing meaty top-line growth.
GVC operates across 18 countries, and the huge acquisition of bwin.party in February 2016 has significantly bolstered the group's position in its core European marketplace. Sports NGRs from its new division shot 26% higher last year, and the scale benefits and cost synergies from the tie-up promise to make GVC a major player on the global stage.
Indeed, the smooth integration of the new unit prompted GVC to note last month that "we feel the organic growth opportunity of the enlarged GVC is greater than originally expected and a key strategic theme in 2017 will be increased, but focused, investment in marketing to fully exploit this potential."
The City certainly believes GVC is back on the road to growth after some recent bottom-line trouble, and expect the company to bounce from losses of 51 euro cents per share in 2016 to earnings of 58.1 cents in the present period.
And earnings are expected to boom to 71.8 cents in 2018, up 24% year-on-year.
GVC has seen its share price stomp higher in recent months, the bingo behemoth having gained 17% in value since the start of 2017. And with the business sporting a very-attractive forward P/E ratio of 15.3 times, I reckon there is plenty of scope for the bull run to keep going."
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