You should read yesterday's Times, but very impressive growth last year,this year started with high double digit growth,Bwin fully integrated with synergies as expectedly (or better),solid 5% yield,expected substantial potential from Lad/Coral acquisition for further growth in regulated markets overseas ( e.g. US).
I am not wild about owning over 3000 small retail units with all costs & prospective issues,but Kenny must have a cunning plan in that respect .
I appreciate that professional shorters often turn out to be right (but not always) & I preume that some hedges feel that the substantial number of new shares in issue will result in an overhang which will suppress our SP & that this really is a deal too much for Kenny .Kenny ha achieved a spectacular amount with GVC over the , taking it from a tiny company in its sector to being 1 of the biggest players & I will be staying for the ride
Great results & our current year has started extremely well.It will be interesting to see how Kenny manages the integration of Lad/Coral as it will be an entirely different ball game to integrating Bwin.I wonder whether they may be a plan to divest the retail operation at some point as the strength of GVS as a company has always been its technology platforms & bricks & mortar is very much yesterdays news.He is obviously totally aware of & will have factored in the costs involved in closing down retail operations & it will be fascinating to see how it pans out over the next year or two.
No plans on selling any of my shares
Well I have given you two good reasons in my last post ai 11.42 todau. Surprised it is only 5% shorted. You saw whaat happened to the High Street betting outfits when the regulation change rumours came out in the last week or so, Down by 20%+. GVC is not in the same ball park, but is joining them with the takeover. The Greek situation, which they may win or lose, is serious money.....and they are already going to be paying monthly, into an escrow fund, win or lose, and I guess that it will go on for some time with all the legal expenses and uncertainty. The Greek Government is not exactly flush and will be keen to get any extra funding. The gambling industry must be regarded as fair game.
I repeat - take your winnings (remember gamblers rarely win - see the figures for Plus 500 and IG index!) and run.
Although GVC were not running the operation in the period concerned, they are making a provision of 200m Euros just in case, as well as paying intoo an escrow fund approx 8 million euros a month. The potential on GVC profitability is not unsubstantial - 200m euros on 2017 accounts. Together with the uncertainty as to the wisdom of buying a huge high street betting company, even with allowances for lower regulated betting terminal limits which could coem down from £100 to £2 every 20secs, perhaps the management have run out of a combination of steam and / or luck. The risks are rising. The SP has done very well so far. Now, I rate them a strong sell.
The quote from Alliance News, always unfortunately just after the London market had closed last evening stated the following:
GVC Holdings PLC said Thursday it faces a EUR186.8 million bill from the Greek tax authorities following an audit assessment, which the online gaming firm said intends to appeal but added it has made a EUR200 million provision.
The FTSE 250-listed firm said one of its subsidiaries which was operating under an interim Greek gaming licence received the tax audit assessment from the Greek Audit Centre for Large Enterprises in respect of 2010 and 2011.
GVC explained the subsidiary was at the time owned by Sportingbet PLC. Sportingbet was acquired by GVC in March 2013.
The total amount of the assessment was set at EUR186.7 million. This, GVC said, was "substantially higher by multiples of the total Greek revenues generated by the subsidiary during the period."
In 2016, GVC generated a pretax loss of EUR138.6 million on revenue of EUR823.3 million.
"Legal and tax advice has been received from the group's Greek professional advisers and this sets out that the group's subsidiary has strong grounds to appeal the assessment and it will, therefore, file an appeal," GVC said in a statement. "As currently there is no formal settlement mechanism, the appeal process is expected to be conducted through the Greek courts."
In the meantime, GVC said the subsidiary continues to trade normally and intends to enter into a payment scheme with the authority. Under this scheme, approximately EUR7.8 million per month over the next 24 months will be paid to the authority and held on account.
"Entering into such an arrangement is not an admission that the assessment is correct and the group will seek to recover such payments," GVC emphasised.
GVC said, in order to be "prudent", it has made a provision of EUR200 million in its 2017 financial accounts. This will cover the 2010 and 2011 period as well as up to the end of 2017.
"The board strongly disputes the basis of the assessment calculation, believing the assessed quantum to be widely exaggerated and is confident in the grounds of appeal," GVC concluded.
Currently £100, this could come down to £2. Clearly this has been built into variable offer from GVC. Also probably GVC have plans to gradually increase online betting at the expense of in store. The $64,000 question is how the change in regulations will affect total betting. It mat not change it very much at all. If betters want to gamble £100 then they will probably do it in £2 lots as well as £100 lots?
In the meantime, there is probably nervousness in the market and as a result some sell down either by investors and /or repricing by brokers.
Currently 2% today. Not massive.
Strong hold or even buy on weakness.
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
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