The Greek market has seen a considerable fall in the activity of gamblers recently.
GVC Holdings has established itself as an online gambling company operating in Greece through a partner.
The company sees its wager turn sour due to the imposition of capital controls by the Prime Minister of Greece.
Due to this, the company is expected to have a severe material effect in its second half of the financial year.
GVC Overall Status
Well, the good news is that the other markets of GVC are certainly doing well and it is confident to gain much profit out of these.
In addition to this, the firm has announced a quarterly dividend of 14-euro cents.
GVC is an aim-listed company that has been operating in Greece through Athens based Centric Multimedia.
According to the reports, GVC offers gambling technology to Centric, and then the company promotes the betting operations in the name of local brands in the nation.
The Isle of Man-based GVC is licensed in Alderney, Denmark, Malta, Dutch Caribbean and South Africa. It operates in more than 20 countries and is very popular in the gambling industry.
An Attempt to Control the Banking System
Around two weeks ago, Greece declared capital controls in order to avert the banking system.
To add on, GVC called its investors and told them about the strict measures that have resulted into a fall in betting by the residents of Greece.
The shares of the company in early trading have gone down to 2.5pc. Karl Burns, Panmure Gordon analyst expresses that it will be inevitable for Greece to take an exit from Eurozone upon failure to reach a deal with its creditors.
It accounts for about 10pc of GVC’s revenues. The company also made a cash and shares bid worth €900 million in alliance with Amaya for struggling online betting business Bwin.
In the Words of GVC
GVC reveals that soon after the Greek government imposed capital controls, the movement of funds outside and within the country has been restricted.
In this particular territory, the player activity has gone down as compared to the last few years. The company is investigating and monitoring all the events.
However, the final effect on its finance is not yet clearly anticipated.
Recently, GVC was reported to approach Bwin on which the discussions are still going on. The discussions are not sure to end up with a final offer being made.
GVC is seen to be pretty satisfied with its trade during the past six months when the sports wagers reached to €823 million.
The company also witnessed high revenues in net gaming that reached €120 million. Despite the cutthroat competition in the gambling industry, the company has managed to reserve the top position and remain popular among people.
In fact, the company was seen announcing an interim dividend of around 14 euro cents during the Football World Cup in the month of June.
The discussions and debates are still going on and the implications of capital controls on GVC are yet to be seen!