Annual Report & Accounts 2013 - REPORT OF THE GROUP FINANCE DIRECTOR
ANNUAL REPORT 2013 16
REPORT OF THE GROUP FINANCE DIRECTOR continued
Table 12: Balance Sheet bridge
At 1 January 2013 58,471
Exceptional items (19,711)
Net finance charges (1,104)
Depreciation and amortisation (3,740)
Movement on translation reserve 359
Issue of shares for Sportingbet acquisition 83,918
Share options exercised 294
Dividends paid (14,979)
At 31 December 2013 141,096
GVC Group reports in Euro and its main operating subsidiary is incorporated in the Eurozone.
Table 13: Mix of currency exposures based on Q4-2013 revenues
Turkish Lira 27%
Brazilian Real 4%
Other currencies 26%
During the year, the combined loss from realised and unrealised foreign exchange was €1.9 million although
€1.1 million of this arose as a one-off re-translation of the Sportingbet ledgers, hitherto denominated in Sterling.
The William Hill loan is denominated in Sterling (£6.9 million) and incurred an unrealised loss of €0.2 million.
GVC does not take delivery of either TRY or BRL as such currency conversions are handled by the Group's
payment processing intermediaries.
Additionally, the Net Current Assets of the Group are of course revalued each month at month-end exchange
rates and this also results in exchange gains and losses. The principal revaluations are for the customer
liabilities, although these are now largely currency matched to produce a natural hedge.
The relative purchasing power of the Euro has strengthened against three significant currencies for the Group.
GVC estimates that the impact on profits from weaker TRY and BRL when compared to average rates in 2012
would be in the region of €5 million.
Table 14: Relative purchasing power of the Euro
(Source: www.oanda.com, the mid point of the bid/offer price has been selected)
1 Euro = Average Rate at Average Rate at % change % change in
rate in 31 Dec rate in 31 Dec in average year-end
2012 2012 2013 2013 rate rate
BRL 2.502 2.70856 2.8514 3.2531 Euro Euro
by 14.0% by 20.1%
TRY 2.314 2.3685 2.5199 2.9464 Euro Euro
by 8.9% by 24.4%
GBP 0.8113 0.8174 0.8491 0.8348 Euro Euro
by 4.7% by 2.1%