Annual Report & Accounts 2012 - REPORT OF THE GROUP FINANCE DIRECTOR
GVC HOLDINGS PLC
B2B 72% 46%
CasinoClub 58% 53%
Betboo 35% 26%
1.5 Other operating costs
These costs, which are analysed in detail in Note 4 to the accounts are before "non-cash" items such
as depreciation, amortisation and share option charges.
These costs increased to €19.6 million from €12.2 million in 2011. The principal components of this €7.4
million increase were as follows:
Increased staff costs 4.8
- reflecting an increase in personnel in the B2B division
- dividend related bonuses to the executive management team
- other increased staffing costs
- overall average staff numbers grew by 30% in the year
Increased professional fees 0.2
Increased technology costs to support a more complicated business 0.8
Increased travel and other costs, reflecting visits to additional offices and the
cost of those offices themselves 0.6
Increased third-party support providers cost for Betboo 0.8
Foreign exchange differences arising on the translation and transaction
of non-Euro denominated amounts 0.2
1.6 Exceptional items
Following the settlement of the legal disputes with Boss Media, there was a €0.2 million credit to the
income statement, being the release of accruals relating to the disputes.
1.7 Depreciation and Amortisation
This amounted to €2.5 million for the year (2011: €2.0 million), on additions of €1.1 million (2011: €1.6
million, excluding additional goodwill arising on the change in the Betboo earn-out arrangements).
1.8 Share option charges
These fell to €79k (2011: €440k) chiefly due to the lapse of 1.1 million of options following the disposal
1.9 Financial income/expense
This is an accounting, non-cash expense relating to the accounting treatment of the Betboo earn-out.
The charge fell marginally to €2.2 million from €2.4 million in 2011.
The charge to taxation rose to €0.5 million from €0.2 million largely due to retrospective taxes imposed
on the Group's operation in Tel-Aviv.
1.11 Discontinued activities
Betaland was discontinued in the year. The business made a negligible contribution in the months it
was trading, and closure costs, including depreciation and net of tax allowances amounted to a total
loss of €1.1 million (2011: profit, €0.5 million).