Annual Report & Accounts 2012 - REPORT OF THE GROUP FINANCE DIRECTOR
GVC HOLDINGS PLC
The activity of the B2B division results in trade receivables settling on a longer time-frame compared
to other businesses of the Group due to complexities with third party payment processor operators,
although this is offset by an increase in credit terms extended by EPC.
4. Key Financial Issues for 2013
The acquisition of Sportingbet plc will result in a number of matters which will impact the income and
cash-flow statements of the enlarged group. Many of these have been trailed in the Group's prospectus
already but it is worth re-iterating them here.
The Group will now benefit from substantially all of the revenues from the Superbahis business, in the
first two months of 2013 this would have amounted to an additional €6.4 million if the transaction had
completed on 31 December 2012. Additionally, William Hill plc are making a capital contribution to the
restructuring of Sportingbet and providing some loan facilities.
As disclosed in the prospectus, the Group will however, be incurring substantial deal fees and
restructuring costs along with discharging the bank debts of Sportingbet and the incumbent losses of
The foreign exchange exposures will also be significantly different and more complex. The reporting
currency of the Group is, and will remain, the Euro. Sportingbet is believed to have substantial Euro
inflows along with GBP outflows. The Group will be closely examining the currency exposures, and will
be assessing what, if any, currency hedging programs should be implemented.
Group Finance Director
25 March 2013