2015 was a momentous year for the Group. not only did the Group increase its revenues and Clean eBitDa
by 10% in the face of adverse currency movements, but also shareholders voted overwhelmingly for the
acquisition of bwin.party on 15 December 2015 which completed on 1 february 2016.
the acquisition was structured as a mixture of a share and cash offer to the bwin.party shareholders; and
financed by an equity placing of £150 million and a senior debt facility of €400 million. the Group is thus well
resourced to see through its restructuring plan and to derive the targeted cost synergies on the combined
the Group has augmented its board by the recruitment of three additional non-executive directors: norbert
teufelberger, who joins us from bwin.party, stephen morana and peter isola. as a result, we have added
significant expertise to the Board in the areas of accounting and finance, regulatory matters and business
development. in addition the operating management has been significantly strengthened below the board
level with senior appointments in operations, product, sales and marketing and investor relations.
the Group's performance across the year was excellent. increased and effective marketing in all territories
led to: growth in net Gaming revenue (nGr), up 10% on 2014 to €248 million; Clean eBitDa up 10% to a
record €54.1 million (at the top end of market expectations) and profit before tax, excluding exceptional items,
increasing 21% to €50.0 million. Dividends paid in the year increased from 55.0 €cents to 56.0 €cents. i am
pleased to be able to say that the Group has increased its revenues, its Clean eBitDa and its dividends for
each of the last five years. as shareholders will be aware, however, one of the conditions of the debt financing
in connection with the bwin.party acquisition is a dividend holiday in calendar 2016.
GvC has a proven ability of generating value through successful integration of significant acquisitions and
management is confident this will continue. we anticipate generating significant synergistic savings through
the integration and restructuring of operations, which we aim to complete over the next 12 months. our target
is to drive €125 million of synergies from the combined businesses, and we remain confident that this can be
achieved. however, the opportunity for the enlarged Group goes beyond cost synergies and we are excited
by the current growth trends and potential across the breadth of businesses.
the Company has a highly focused and entrepreneurial culture, supported by an employee cash bonus
structure as well as its long term incentive plan with market-priced stock options together with a total
shareholder return measure. furthermore i, together with the executive directors, have acquired a highly
meaningful personal financial stake which should assure shareholders that our financial interests are closely
aligned. returning cash to shareholders via dividends has been core to the Group's philosophy and this
remains the case. as with the sportingbet acquisition, we aim to return to paying dividends as quickly as our
borrowing facilities allow and is prudent from a balance sheet and cash flow perspective.
GvC now has significant scale and capability, and has positioned itself to make further acquisitions if they
are sufficiently accretive for shareholders. we operate in a challenging and competitive market but one that
also presents significant opportunities. i believe the Group has never been better placed to face these
challenges and pursue the many opportunities.
GvC will be posting its annual report to shareholders on saturday 30 april 2016 and it will be uploaded on
our website (www.gvc-plc.com) from that date. the aGm will be held in the isle of man on tuesday 24 may
2016. Lastly, i can confirm that we are actively pursuing our stated aim of seeking admission of the enlarged
Group to the premium segment of the official List as soon as practicable following publication of the 2015
annual report and we will update shareholders accordingly.
Chairman and non-executive Director
22 april 2016
GVC HOLDINGS PLC ANNUAL REPORT 2015 9