DAVY VIEW

GVC’s H1 results confirm that the group continues to benefit from better-than-expected trading momentum (UK Retail running ahead of expectations; Q3 appears to have started strongly). This has been an almost ever-present feature of results over the past 12 months and, as such, our underlying forecasts must now be adjusted higher. That momentum is partially overshadowed by regulatory concern. In this case, we must reflect additional Germany costs in our estimates for the second half of the year. Net net, we estimate consensus estimates should move higher by c.1.5% in FY19 and up to 3% in FY20.