DAVY VIEW

GVC’s Q2 statement confirms the group’s ongoing underlying momentum in its Online division (+16% despite the World Cup impact) despite the impact of FOBT restrictions — group revenue was up 3% in the quarter. This is stronger than expected and we continue to believe that the risk to full year estimates is modestly to the upside. The stock remains attractively valued (just 6.5x our current FY 2020 EBITDA forecast). However, persistent concerns (both sector and company related) are likely, in our view, to limit scope for any meaningful re-rating for the foreseeable future.