Annual Report & Accounts 2015 - REPORT OF THE GROUP FINANCE DIRECTOR
sports wagers grew 15% to €1,683.0 million (2014: €1,463.5 million). they averaged €4.6 million per day and
rose to over €4.9 million per day in Q4 (Q4-2014: €4.4 million).
sports margins differ widely across the multiple markets in which GvC operates as a consequence of the
maturity of each market and the sports followed within them. a sports margin of 9.2% (2014: 9.8%) was
sports nGr represents the sports gross margin less free bets and promotional bonuses.
Customers have a variety of gaming opportunities ranging from Casino (table games and slots), through to
poker and, in certain markets, Bingo. sports and gaming revenues are relatively equal now, and in 2015
sports nGr represented 46% of revenue and Gaming nGr represented 54%. 2015 saw a 10% increase in
revenue over 2014, most of which came from growth in Gaming nGr.
Table 2: Average revenues per day since 1 January 2015
€000's Q1-2016* Q1-2015 Q2-2015 Q3-2015 Q4-2015
sports wagers per day 10,626 4,558 4,544 4,371 4,968
sports margin % 8.8% 9.0% 8.7% 9.9% 9.0%
total nGr per day 1,843 665 671 667 712
* including bwin.party since 1 february.
Contribution is GvC's measure of revenues less cost of sales, and costs with a high correlation to revenues,
such as partner shares, affiliate commissions and other marketing expenditure. Cost of sales includes
payment processing charges, software royalties and local betting taxes, and value added taxes where the
Group has a liability.
Contribution increased by 10% to €135.4 million, and a constant contribution margin percentage of 55% was
achieved (2014: 55%).
in the context of a growing business, absolute costs have increased from €74.1 million to €81.3 million, with
cost ratios as a percentage of total nGr remaining flat at 60%. staff cost ratios remained broadly level at
19.6% from 19.2%, with 34% of staff costs (2014: 32%) being performance related - chiefly based on Group
dividend payments. this should be seen in the context of €34.3 million of dividends paid in 2015, an increase
of 2% on the €33.6 million paid in 2014.
Table 3: The principal cash expenditures of the Group (excluding exceptional items) and their percentages
in €millions 2015 % of nGR 2014 % of nGR
staff costs including performance pay 48.5 19.6% 43.1 19.2%
technology and product content 23.7 9.6% 21.0 9.3%
other costs 9.1 3.6% 10.0 4.5%
81.3 32.8% 74.1 33.0%
the Group aims to achieve a clean eBitDa margin of not less than 20%.
Clean eBitDa rose 10% to €54.1 million (2014: €49.2 million), and a 22% margin on nGr was achieved, in
line with 2014.
non-cAsh iteMs oF An AccoUntinG nAtURe
Depreciation of Property, Plant and Equipment rose in the year to €0.9 million (2014: €0.7 million) on total
acquisitions of €1.2 million.
Amortisation of Intangible Assets increased to €4.1 million (2014: €3.2 million) driven by the €5.0 million
acquisition of additional software and software development costs to further strengthen our mobile and tablet
GVC HOLDINGS PLC ANNUAL REPORT 2015