Online gaming firm GVC Holdings' move into business to business (B2B) services last year contributed to another year of top line growth.
Total revenues rose by 17% to €64.3m in 2011 from €54.9m in 2010, which the group bragged was its fifth straight year of posting revenue increases.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) declined to €10.0m from €12.2m the year before, as the group stepped up its marketing and TV campaigns for its business to consumer (B2C) brands.
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Exceptional charges of €4.8m (2010: €4.4m) and non-cash items of €5.1m (2010: €3.7m) relating to earn-out clauses attached to the Betboo acquisition saw profits virtually wiped out, with the group posting profit before tax of €0.1m, down from 2010's €4.1m.
Once the tax man on the tax haven of Isle of Man had taken his cut, the group was faced with a loss of €0.15m, versus a net profit of €3.45m in 2010.
The company has announced a final dividend of 11 cents per share, 10% higher than the final dividend for 2010 and ahead of market expectations. The firm also unveiled plans to pay a quarterly dividend beginning in February 2013.
The group aims to pay around not less than 75% of its net operating cash flow to shareholders by way of dividends. Furthermore, the executive bonus plans are only triggered by dividend payments, thus aligning the interest of executives with shareholders.
The dividend news cheered shareholders, as did an update on current trading, covering a 113 day period to April 22nd.
"Trading in 2012 has started encouragingly, despite some unusually high casino winners across both B2C and B2B along with a softness in the B2C sports margin percentage through punter-friendly results. The Latin American business continues to grow with sports wagers 165% higher than the same period last year," Chief Executive Kenneth Alexander said.
So far in 2012 the group has seen a 57% increase in daily average revenues to €160,000 from €102,000 in the corresponding period of 2011. B2B revenues are running at €56,100 a day. The board is very encouraged by the new B2B venture and believes that it will help underpin the group's dividend policy.
The 2012 figures exclude Betaland, the business which was disposed of in April.
There have been no material developments in the litigation with Boss Media. Court and arbitration cases are proceeding in accordance with local procedure.
The share price rose 6.78% to 157.50p by 13:17.
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